Pure Extracts (CSE: PULL) is looking to scale up its production of both THC and CBD extracts. The company this morning announced that it has entered into two of its first substantial biomass purchase agreements to support the scale-up.
The biomass purchases by the company are for both THC and CBD varieties. For THC, the company has secured 200 kilograms of high potency dried cannabis flower from a large licensed producer. For CBD, the company has agreed to purchase 1,000 kilograms of high potency biomass from a western producer.
The decision to begin the ramp up of operations follows the falling of biomass prices after the fall outdoor harvest. The purchases are expected to drive revenue growth within Q1 2021.
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Once extracted, it is expected that the company will be able to produce approximately 70 kilograms of CBD distillate, as well as 25 kilograms of THC distillate from the biomass. At current market prices, the firm expects the distillate to lead to up to $590,000 in near term sales revenue.
“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.”
Ben Nikolaevsky, CEO of Pure Extracts
Pure Extracts last traded at $0.70 on the CSE.
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