Pure Extracts Technologies (PULL.C) announced that they have ordered a new, state-of-the-art Cosolvent Injection System (CIS) from Vitalis Extraction Technology, and will be one of the first companies in the world to receive this innovative system.
The Vitalis CIS patent-pending technology aims to deliver high-purity CO₂ extraction while using ethanol to significantly reduce runtime and operational costs, as well as improve post-processing. This device was designed to achieve optimal ethanol cosolvent flow rate ranges for both cannabis and hemp extracts, balancing extract quality with minimal ethanol usage.
Vitalis Extraction and PULL have a long history working together, and the Cosolvent Injection System was designed to enhance Vitalis’ existing CO₂ extraction systems, such as their Q90 and R200 models, which Pure Extracts currently owns.
“We are very excited to be one of the first recipients of the Vitalis Cosolvent Injection System. It will allow us to ramp-up our production much faster than we had anticipated allowing us to offer our customers exceptional value while still producing the same high-quality oil extracts we are known for,” stated Pure Extracts CEO Ben Nikolaevsky.
Currently, the CO₂ extraction process presents producers with high costs, which makes it harder for their products to compete with cannabis flower in terms of value. However, many products that are growing in popularity require a CO₂ extraction process, such as oils, vaporizer pens, and infused edibles. Any company that can create high-quality products while keeping costs down has a good shot at success in a growing market.
In November 2020, cannabis extracts represented 16% of total sales, with 1,486,038 packaged units sold, and edibles sales were 17% of total sales, with 1,608,791 packaged units sold, according to the government of Canada. Together, these make up about a third of the total cannabis industry’s sales in Canada.
Between October of 2019 to October of 2020, sales of cannabis extracts grew by over 200%, with non-medicinal purchases driving most of the growth. Although we don’t have a year’s worth of edible sales data, we can see that sales have increased from month to month almost every single month.
Any way that Pure Extracts can find to drive down their production costs and make their prices more competitive in a growing industry could pay off big in the long run.
The news has not had a significant effect on their stock price.
Full disclosure: Pure Extracts Technologies is an Equity.Guru marketing client.