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FAQ
Why cannabis extraction and why now?
Canada’s cannabis markets are currently dominated by dried flower products, with only an estimated 13% market share by extract products. If the last phase of the cannabis market was all about production and distribution, this phase will be dominated by technology. Vape pens with pre-loaded cartridges of cannabis extract, will soon be legal in Canada. These are among a series of new products, including edibles and beverages that will be for sale legally in Canada in Q4 2019.
What is CO2 Extraction?
Carbon dioxide (CO2) extraction is a relatively new process used to extract the essence of the cannabis plant (Full Spectrum). When a certain amount of pressure is applied to CO2, this gas turns into liquid. This liquid CO2 can be used as a very inert, safe, “liquid solvent” to extract oils form the cannabis biomass.
Where are Pure Extracts operations located?
Pure Extracts operations are in Pemberton, British Columbia.
Is Pure Extracts licensed?
Pure Extracts Standard Processing License is anticipated in Q4, 2019.
Is Pure Extracts facility EU-GMP certified?
With growth in mind and phase 1 expansion to 8,000 sq. ft. underway, Pure Extracts is currently building its facility to EU-GMP certifications with dedicated lab and packaging spaces.
Where does Pure Extracts get its biomass from?
Pure Extracts is in the process of signing several LOIs with licensed producers to procure biomass on a contractual basis. The other part of the strategy is to use our cash on hand to make spot purchases and take advantage of lower prices. There is an abundance of biomass available as the licensed producers often produce low quality cannabis that is difficult for them to sell. Turning it into oil is the obvious way for them to monetize their production.
Will Pure Extracts do any tolling or white labeling work?
Pure Extract’s business model will consist of three verticals: it’s in-house brands, toll processing, and white labelling. Within the contracts that Pure Extracts is currently negotiating for supply, there are toll processing and white labelling components as well. We expect the majority of the business from the onset to be from tolling and white labelling, with the product mix shifting towards our in-house brands as we increase our distribution.
What is Pure Extracts distribution strategy?
The distribution for recreational cannabis in Canada is largely handled by the government. They buy from the producers and manufacturers and sell them to the dispensaries. Thus, the strategy is two-fold. One, use a push marketing strategy to sell the product to the government. Two, use a pull marketing strategy to get the dispensaries to request and buy our product from the government, which feeds into our push strategy in a feedback loop.
When is Pure Extracts going public?
Pure Extracts is planning a Q4 2019 Canadian listing.
Where can I find the investor deck?
Pure Extracts investor deck can be found here.
Sign up now to secure your spot
Due to overwhelming interest in our financing we are requiring that all interested investors fill out the form below to secure their spot. Filling out the form is not an obligation to participate and each request will be handled in the order it is received.
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