LifeSpot Health (ASX: LSH) has started distribution negotiations with "key players in recreational cannabis" following production of its first medical cannabis smart vaporiser.
At the time of writing shares in the Melbourne-based company were up 13 per cent, with the group highlighting significant growth in the booming cannabis concentrate segment that is largely driven by vaping (to the tune of around 58 per cent).
According to a report by Arcview Market Research in partnership with BDS Analytics, consumer spending on cannabis concentrates in the US alone is set to rise 49 per cent year-on-year in 2018 to hit US$3 billion ($4.15 billion).
By 2022, that figure is set to reach US$8.4 billion ($11.6 billion).
The group is also encouraged by Canopy Growth Corporation's (NYSE: CGC) recent 145 million ($228 million) of Germany-based Storz & Bickel, designers and manufacturers of vaporisers including 'Volcano Medic' and 'Mighty Medic'.
LifeSpot only recently completed its acquisition of another German company, Seng Vital, which initially began as a joint venture that has been the catalyst for its expansion into the medical cannabis market.
First orders and trade samples have been dispatched for the smart vaporiser, complete with integrated Bluetooth connectivity. LifeSpot highlights Seng Vital's 15-year long relationship with the Shenzhen manufacturer that made the first product, and a recent visit to China to strengthen bonds between the two companies.
"During the visit the company also reviewed the manufacturing capacity and quality management system to ensure monthly production capacity can meet forecast demand and set in place a rigorous new product development program to ensure the company remains at the forefront of connected vaporiser technology."
In response to client demand LifeSpot has also developed the first prototype for a Bluetooth-connected, finger-activated slim-line recreational vaporiser.
"This system will be displayed at Cantech [in Toronto on 29-30 January] alongside the medical system and the Company believes will be the first finger print activated Bluetooth integrated recreational device," the company says.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.