Pure Extracts (PULL.C) announced today that its wholly owned subsidiary, Pure Extracts Manufacturing Corp., has shipped its initial order of one-gram, full spectrum oil (FSO) vape carts via its distribution partner to the British Columbia Liquor Distribution Branch (LDB).
“We are excited to have shipped our first order for one-gram FSO vape carts to the LDB for retail distribution to licensed dispensaries throughout our home province of British Columbia and we are proud to be a leading innovator in the cannabis vape sector,” stated Pure Extracts CEO, Ben Nikolaevsky.
According to Prohibition Partners, following the rollout of cannabis 2.0 products in October 2019, cannabis-based products like edibles, vapes, beverages, oils and topicals, saw record sales. In particular, in August 2020, sales of cannabis 2.0 products reached approximately 1,400,000 units compared to 280,000 units in January 2020. Prohibition Partners expects the cannabis 2.0 sector to demonstrate the highest sales growth with sales projected to reach USD$416 million by 2025. Furthermore, data collected by Headset in June 2020, showed that vape pen sales earned an impressive 16% of cannabis market share in Alberta, 13.4% in British Columbia (BC), and 15.1% in Ontario.
That’s fine and dandy, but what does this mean for Pure Extracts? In addition to generating high margins for the Company, Pure Extracts’ Pure Pulls branded vape carts have generated high consumer demand within provincial markets. Moreover, according to Pure Extracts’ Interim Financial Statement, the Company reported revenues of CAD$14,400 as of March 31, 2021. This marks a first for Pure Extracts, however, the Company’s financial are still rather tight with an overall cash position of $3.3 million at the end of the same period. With this in mind, Pure Extracts will likely have to rely on debt or equity financing to continue with its operations plans. For a more detailed explanation, check out this informative article written by Taku Ndachena.
“The combination of a larger form factor with our exceptional cannabis extracts will build on the loyal following Pure Pulls already has in place and continue to make the vape cart business a material revenue producer for Pure Extracts,” continued Ben Nikolaevsky.
Pure Extracts’ latest announcement comes on the heels of the Company’s shipment of edible cannabis gummies to the BC LDB. In addition to Pure Extracts’ Pure Pulls branded vape carts, there is also a strong demand for the Company’s Pure Chews branded THC and CBD gummies within provincial markets. With this in mind, Pure Extracts has a strong portfolio of cannabis 2.0 products. The Company will likely experience growth relative to the expansion of the cannabis 2.0 market. Furthermore, as concerns surrounding COVID-19 are diminished, Pure Extracts could see its vape cartridge sales rebound. For a deep dive analysis of Pure Extracts, check out this great article from Joseph Morton.
Pure Extracts’ share price opened at $0.395. The Company’s shares are down -3.80 and are currently trading at $0.38 as of 2:57PM ET.