“We are excited about preparing to ship our first vape cart orders to the provincial distribution channels. We have created the high quality FSO vape products that consumers now demand and believe that we will quickly build brand loyalty with both legacy and new entrants in the vape space,” commented Pure Extracts CEO, Ben Nikolaevsky.
According to Data Bridge Market Research, the CBD vape market could be worth up to $28.05 billion by 2027 at a CAGR rate of 22.25%. In addition to recreational use, CBD oil usage has become increasingly relevant in several medical applications. Some of these applications include treatment of anxiety, depression, stress, diabetes prevention and the alleviation of cancer symptoms to name a few. The expected growth of the CBD vape market bodes well for a company like Pure Extracts, which has its sights set on becoming a leader in the cannabis market.
Pure Extract’s 510 vape cartridges adhere to the highest North American test standards and were chosen for their component parts, fit and finish as well as their performance characteristics when paired with the Company’s oil concentrates. With this in mind, it comes as no surprise that the demand for Pure Extracts 510 vape cartridges is strong within provincial markets. After all, Canada represents one of the world’s largest cannabis markets with Canadians purchasing $2.6 billion worth of legal recreational cannabis products in 2020. Additionally, Ontario continues to lead the Canadian cannabis market having generated $727.5 million in sales last year.
Pure Extracts estimates that retail sales revenue for this production run will be approximately $750,000. The Company’s latest production run comes on the heels of its initial production run of 50,000 gummy packs for provincial distribution in Canada. Compared to the expected revenue of $750,000 generated from retail sales of its 510 vape cartridges, Pure Extracts estimates its gummy packs will earn approximately $200,000 in revenue. Pure Extracts is certainly looking to make a mark in the Canadian cannabis market, however, whether or not the Company will meet these sales targets is unknown.
Pure Extract’s share price opened at $0.355, up from a previous close of $0.345. The Company’s share price is currently up 4.35% following the news at a price of $0.36 as of 11:24AM ET.
Full Disclosure: Pure Extracts is an Equity Guru marketing client.