Cannabis patient and visionary Jonas Duclos and co-founder Kevin Goetelen launched the CBX Exchange (CBX), a B2B trading platform for the sale and purchase of raw materials and products derived from hemp and cannabis.
CBX evolved from an earlier version of the platform, Hemp Broker420launched by the founders in 2019. The founders in 2017 also created Search JBKwhich manufactures and sells cannabidiol products under the brand CBD420.
Jonas’ expertise in the cannabis industry is the result of his personal experience. Having struggled with a rare genetic skin condition called PRP as a teenager, Jonas later discovered that cannabis provided the most effective pain relief for the condition.
In 2019, the vision of the founders of HempBroker420 was to establish a marketplace to bring together producers and distributors encountered through business relationships with CBD420. At the time, HempBroker420 was the first of its kind to offer a secure B2B network for cannabis derivatives traders.
In 18 months of running in stealth mode and without any investment in marketing, HempBroker420 had attracted over 2,500 members and generated over €300,000 ($326,000) in net profit. By the end of 2021, membership had grown to nearly 4,000.
The tremendous demand faced by the platform led the founders to realize the immense gap in the market for a B2B marketplace serving players in the cannabis ecosystem, a marketplace that would engender a level of trust and transparency needed from urgently from “seed to shelf”.
Commenting on the launch, Duclos told Benzinga: “With the European cannabis industry set to reach billions in the coming years, it’s unbelievable that there are no regulations in place to police the market. Europe has a reputation for protect its citizens, but when it comes to cannabis it is lagging behind.The industry has operated blindly for too long without the necessary infrastructure, quality controls and assurances in place and that must change.
How CBX Works
CBX Stock Exchange provides a reliable, transparent and structured marketplace for buyers and sellers with the ultimate goal of facilitating the safe development of cannabis products and protecting end-user safety. A recent survey by Swiss Association of Cantonal Chemists in CBD products found 85% were found to be non-compliant with the association describing the situation as “disastrous”.
CBX offers trading of flowers, hemp biomass, distillates and isolates, tinctures, combination of cannabis extractions with various oils, such as hemp seed oil and walnut oil of coconut. The platform connects cannabis producers to a range of industries from wellness to beauty on the supply side.
In the absence of universal standards for the purchase and sale of cannabis products, CBX consulted the Swiss Health Authority and has developed its own standards.
Through a standard due diligence process, all applicants are fully vetted before becoming registered members of the CBX community. They must meet strict criteria to obtain a CBX certification level and a Certificate of Analysis (COA) label, which allows them to trade on the platform.
Certification is awarded after receipt and verification of all required documents and the COA is provided after a product quality review performed by the Lausanne office SciTec Research laboratory.
Accredited by the Swiss Accreditation Service, Swiss Testing Labs and Swiss Medic, SciTec specializes in the analysis of cannabis and its derivatives. Each product undergoes seven quality checks, which include analysis for THC as well as terpenes (ingredients that contribute to a product’s odor, flavor and therapeutic profile) and composition to ensure that there are no harmful contaminants.
CBX facilitates transactions between buyers and sellers and members are charged a commission aligned with their subscription level (free, standard, premium). To further improve and simplify the end-to-end experience, CBX is in the process of appointing a payment processing partner, as well as a dedicated agent to offer shipping services integrated into its site.
CBX is also in discussions with the Swiss and Portuguese medical authorities to obtain a medical license, which would allow it to open the platform to buyers and sellers in the medical market. He expects to get the license in the second half of this year.
Photo: Jonas Duclos via Lakeside Media.