420Investor Founder Alan Brochstein on Cannabinoid Biosynthesis Value Proposition

420Investor founder Alan Brochstein, CFA provides a rundown of the Paradigm Capital Biosynthesis Conference. Brochstein explains that companies are attempting to create biosynthetic cannabinoids with the goal of creating a standardized, low-cost source of cannabinoids. Brochstein suggests that, if successful, biosynthetic cannabinoids could be a game-changer for the industry. He cautions that while institutional money is starting to flow into the space, no company has been able to synthesize cannabinoids at scale and at cost. Brochstein breaks down what biosynthetic cannabinoids mean for existing cannabis companies, indicating that while it could be negative for cultivators, it offers a potential boon for cannabis product manufacturers. Brochstein believes cultivators aren’t currently under threat and notes there will always be a demand for flower, especially premium dried flower. Brochstein suggests that with growing acceptance and evidence that cannabis consumption has health benefits, extracted products will grow in market share. He feels CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) (FRA:C9S) management should have been more proactive with guidance prior to releasing its latest financials. However, he notes the market has responded too harshly to CannTrust and the company’s recent downward trend is providing appealing entry points.