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“They moved fast. We were anticipating this, but not this quick,” Marc Wayne, CEO of Bedrocan Cannabis Corp., said in an interview.

Wayne said it would not be difficult to adapt his business in order to produce these “derivative” products. In fact, Bedrocan and other licensed producers are currently throwing vast quantities of marijuana material into the garbage, because they can’t use it in dried, smoke-able products. That material can be used in oils that fetch much higher prices, meaning the producers could get both greater efficiency and higher margins.

Derivative products such as oils have become extremely popular in places like Colorado, where pot has been legalized. Some industry observers believe these products will ultimately become far more prevalent among medical patients than smoke-able marijuana. “I think they will overtake the market,” Wayne said.

But the Health Canada decision on Wednesday still led to some head scratching in medical marijuana circles.

The ruling provides limits on THC concentration in the oils that appear to be totally arbitrary, according to Adam Greenblatt, who runs a medical marijuana clinic in Montreal. He is also disappointed that Health Canada seems to only be allowing food oils, even though some patients use oils extracted by alcohol.

They moved fast. We were anticipating this, but not this quick

Another question mark is the sale of fresh marijuana buds. Greenblatt said they could get mouldy en route to the customer. The fresh marijuana could be used in juices, but he said that is an ineffective way to take cannabis.

“(The decision) is a good step in the right direction, but it doesn’t go far enough,” Greenblatt said.