Pure Extracts Technologies (PULL.C) picked up their first substantial biomass purchase agreement to scale production of both THC and CBD extracts today, according to a press release.
The agreement is for the purchase of 220 kilograms of THC cannabis dried flower from a Canadian licensed producer, as well as another purchase agreement for 1,000 kilograms of CBD biomass from a cultivator in Western Canada. The company believes that while biomass prices are reaching new lows this is an excellent time to make its first purchases, while will drive revenue in Q1, 2021.
“Having a stockpile of biomass makes sense for us now as Pure Extracts starts to build its name in the elite category of extractors. We are looking forward to showcasing our world-class products and consistently ramping up revenue this year,” said Ben Nikolaevsky, CEO for Pure Extracts.
Pure Extracts Technologies is a cannabis (and soon to be psychedelics) extractions company with a state of the art processing facility about 20 minutes north of Whistler, B.C. They’ve custom constructed it to meet with European Union Good Manufacturing Practices standards and aimed it towards export sales of products and formulations, including psilocybin, which is presently restricted in Canada but perfectly fine and a viable and lucrative market in Europe.
The cannabis from this deal will be sued to produce full-spectrum THC oil with a minimum purity rate of 67% and distillate with a minimum purity rate of 86%. The hemp will find its way into the production of full-spectrum CBD oil with purity rates of 66% and distillate with an 85% purity rate. The company aims to produce about 70 kg of CBD distillate with 25 kg of THC distillate. Presently, they’re aiming at wholesale prices of $6,000 per kg and $6,800 per kg, respectively, and the biomass could rake in $590,000 in near term sales revenue.
Trading is flat on the news and Pure Extracts’ price is holding at $.70.
—Joseph Morton
Full disclosure: Pure Extracts is an equity.guru marketing client.
