Despite a massive global push to legalise cannabis and legitimise the medicinal marijuana industry, the sector continues to struggle with the black market.
To combat this, Sydney-based anti-counterfeit solutions provider YPB Group (ASX: YPB) has signed its first US cannabis industry client Elev8 Distribution to assist in combatting the black market cannabis trade.
The relationship with Elev8 falls under YPB and Canadian legal cannabis distributor Namaste's partnership called Cannabis Confirmed, now just over a month old.
Elev8 is a Colorado-based producer of cannabis vaporisers sold under the brand name 7th Floor Vapes and distributed via Namaste, resellers and the brand's own website.
The Cannabis Confirmed program formally began at the end of June 2018, with YPB and Namaste teaming up in an attempt to secure the legal cannabis supply chain globally. The two companies hope to develop a global product authenticity standard for the industry.
Executive chairman of YPB, John Houston, says securing a US client will give Cannabis Confirmed the momentum it needs to take off.
"Winning our first cannabis client in the USA is exciting but just the tip of a large iceberg," says Houston.
"Namaste is proving a dynamic and committed partner and we have developed a powerful plan to ensure product and supply chain integrity across the legal cannabis industry where we have a genuine opportunity to become the global authentication standard."
"We expect to demonstrate further strong momentum with Namaste."
Shares in YPB are up 4.76 per cent to $0.02 per share at 11.30am AEST.
Photo credit: Pixabay, Creative Commons
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