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The cannabis industry has taken root in our economy and throughout our daily lives. In fact, two out of three Americans are now in favor of legalization, and even those who don’t consume have probably run into a cannabis headline in their mainstream media.
While most industries were completely suspended during the COVID-19 pandemic, cannabis proved to be essential, adaptable, and deeply rooted in our culture and economy. Reported cannabis sales increased to 46% in 2020 alone and as legalization continues nationwide, more and more opportunities to invest are sprouting up.
That’s a strong catalyst for companies such as Pure Extracts Technologies Corp. (CSE:PULL) (OTC:PRXTF). Now, let me explain to you what this company is all about.
About the Company
The Company has a state-of-the-art facility, located about 20 minutes north of Whistler, BC in the town of Pemberton. The facility is built to European Union GMP standards, and the Company intends to seek EU GMP certification of its operations allowing it to export its products for sale in Europe where such products are legal.
With a team of qualified experts in the space and cutting-edge CO² and ethanol extraction technology, the Company is set up for long term strategic distribution and product innovation.
What makes Pure Extracts special?
Pure Extracts Technologies is undertaking the operations of toll processing and white labelling for LPs who lack the extraction expertise and necessary expensive equipment, and is developing its own private label of products under its ‘Pure Bulls’ brand, incorporating its full spectrum THC and CBD based extracted oils (“FSO”).
Led by the CEO Ben Nikolaevsky, the management team at Pure Extracts has experience in all facets of the cannabis industry including over 5 years of volatile plant extraction, new product development with over 30 proprietary vape pen formulations, large-scale facility operations, licensing of US brands for the Canadian and international markets, in-house branding, marketing and national sales.
Moreover, Pure Extracts Technologies just commenced production of 25,000 vape cartridges in preparation for retail distribution to the Canadian market. Retail sales revenues for its first production run could come in at about $750,000.
In addition, the company also just started an initial production run of about 50,000 gummies packs for provincial distribution. Lastly, Pure Extracts technologies and Psyence Group just a JV letter of intent for the extraction of psilo-cybin, and the development of psilo-cybin-based formulations.
Pure Extracts Technologies is already expanding its business to include mushroom extracts by working on functional mushroom extraction processes compatible with its existing infrastructure.
The Company believes that there exists a significant opportunity for it to become an important extraction partner for the commercialization of new functional mushroom products designed with purity and consistency in mind.
To that effect, Pure Extracts is also planning to eventually enter the psychedelic mushroom market as an additional business model for its overall extraction market penetration strategy.
About the market
Cannabis has crept out of the shadows of the stoner culture and emerged as a multi-billion dollar industry that has taken root in sectors including healthcare, pharmaceuticals, consumer goods and agriculture.
As the legal cannabis industry continues to grow and develop and public support for the legalization of recreational and medical marijuana use grows, an increasing number of investors have taken note.
In fact, the global cannabis extract market size is expected to be valued at US$28.5 billion by 2027, according to a new report published by Grand View Research, Inc. It is projected to expand at a CAGR of 16.6% over the forecast period. That only add to the global market for functional mushrooms, forecasted to reach US$34.3 billion by 2024 and growing at an increasing CAGR rate of 8% between 2019 and 2024.
In 2019, oils held the largest revenue share of the global cannabis market for 66.5%, owing to ease of availability and low price of the product, with North America accounting for the largest share. This can be attributed to high utilization owing to government approvals.
The Canadian cannabis industry has grown dramatically in size since the national government legalized the possession and recreational use of cannabis on October 17, 2018.
As of this writing, Pure Extracts Technologies is trading at about CA$0.26 and could be potentially oversold. With an increasing number of cannabis stores and its entry to the US market, PULL could potentially reach CA$0.40 within this month.
Pure Extracts Technologies’ Business Model
Pure Extracts Technologies unique business model is founded on three pillars: Extraction, Formulation, and Brand Development.
Pure Extracts’ business is mainly on extraction. With their Vitalis CO² extraction system, they were able to produce Full Spectrum Oil (FSO) which is considered to be one of the purest and highest quality oils.
The Company is aiming to produce a capacity of 100,000 kg of biomass each year with a technique that has been tried and tested through their team’s industry experience.
Pure Extracts is equipped to offer a variety of different product formulations in the near future, each with specific functionalities. Their product formulations will be of optimal quality, composed of Pure Extracts’ oils and blends of natural ingredients.
Moreover, Pure Extracts’ long term product expansion plan will be strategically rolled out in three phases.
Due to a very limited number of companies that are focused on oil extraction, this provides huge opportunity for Pure Extracts to leverage long term experience in the field.
This business model is very unique to the Company and this makes Pure Extracts the only sector-specialized extractor to enter the Canadian market with a comprehensive Brand Expansion Plan.
In fact, last May 20, 2021, Pure Extracts Technologies announced that its wholly owned subsidiary, Pure Extracts Manufacturing Corp., has signed a custom manufacturing/ white label agreement with Richmond, BC based FLO Brands Inc. to launch a line of cannabis vape products.
- Pure Extracts is a Canadian plant-based extraction company specialized in the production of cannabis, hemp and mushroom products.
- Pure Extracts uses CO² extraction technology to derive full spectrum oil from cannabis biomass.
- Pure Extracts is the emerging leader in the extraction space offering only the purest quality oil.
- The company has produced roughly 25,000 vape cartridges and about 50,000 gummies packs.
- The company has proven technology for extraction use, CO² Vitalis systems and ethanol equipment.
- Pure Extracts Technologies Corp. team has solid experience with Ben Nikolaevsky as the company’s current CEO.
- Pure Extracts was granted its Standard Processing License by Health Canada under the Cannabis Act and the Company’s stock began trading on the CSE on November 5, 2020.
Finance Talk PH provides data that are based from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be treated as advice designed to meet the particular investment needs of any investor. Any opinions expressed in the website are subject to change. The author of the website has been compensated US$150 for this sponsored blog post by a third party on behalf of Pure Extracts (CSE:PULL) (OTC: PRXTF) (FWB: A2QJAJ) on June 11, 2021.
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