- HTC
acquires California hemp-based extraction, formulation and refining
operation of Kase Farma and completes tolling contracts
- HTC
has finalized construction of two new hemp biomass processing and storage
facilities, with extraction equipment set to arrive in December 2019
- Canada’s
cannabis industry will total $3.7 billion by the end of 2020
- U.S.
sales of hemp-based CBD products set to grow at a CAGR of 147 percent,
reaching $22 billion by 2022
HTC
Extraction Systems (TSX.V: HTC), a hemp-biomass extraction and formulation
company, is well positioned to profit from the fast-growing hemp and CBD, CBG
and CBN market, in light of recently announced strategic initiatives ranging
from new tolling contracts to the completion of two facilities and the signing
of a Share Purchase Agreement with Starling Brands Inc., acquiring Kase Farma
Inc., in Ceres, California , a hemp-based extraction, formulation and refining
operation.
Kase Farma is authorized to operate in the areas of hemp
extraction, refining, formulation and distribution of CBD, CBG and CBN in the
State of California. Kase Farma, will receive and commission equipment that is
able to process and distill 12,000 lbs. per day of dried biomass at its
“IPElite Extraction” operation in California. Kase Farma’s “IPElite Extraction”
operations are part of the vendor-owned 22,000 square foot overall facility and
will process 12,000 lbs. per day of dried biomass; which at an 8% CBD yield will
have the capability of producing, 435,000 grams daily of CBD, delivering
highest quality, saleable CBD to the wholesale market with gross revenue
potential of approximately $1.4 million USD per day.
In October 2019, the company closed a bought deal private
placement with gross proceeds of $10 million to finance 25 million units of the
company (http://ibn.fm/fFxwu).
According to the company, most of the funds are to be used for the purchase of
extraction, purification and refining equipment, and for general working
capital purposes.
HTC is currently in late-stage negotiations with a
60,000-acre recognized Canadian farm leader who is a major IPGrow™ hemp biomass
producer. HTC intends to enter into a tolling contract with the producer for
the 2019, 2020, 2021 and beyond production crop years. The contract is
anticipated to represent production from a single producer/biomass processor of
approximately 4,300 acres from the 2019 crops, up to 25,000 acres for the 2020
and 2021 and beyond production crop years.
The company’s other strategic initiatives include tolling
contracts, marketing and distribution agreement, extraction equipment
purchasing, and project construction updates.
HTC has finalized the construction of its 27,000-square-foot
hemp biomass processing and storage facility, which will be used to store
extraction-ready biomass. The company has also completed a 19,000-square-foot
facility that will house extraction and formulation processing, quality assurance
testing, and product development laboratories at its Port Lajord location 17
miles southeast of Regina, Saskatchewan. The facility is going to be on par
with the highest performance and quality standards for extraction and refining
worldwide. The extraction equipment is scheduled to begin arriving in December
2019, with installation to follow.
HTC Extraction Systems has a highly optimistic outlook when
it comes to the CBD, CBG and CBN cannabinoid extraction and formulation market
expansion. The company reports major investments in the purchase of extraction,
purification, and refining equipment.
These developments, paired with the company’s proprietary
hemp biomass extraction technology that reduces operating costs while
delivering superior results, will enable HTC Extraction Systems to profit from
the buoyant Canadian cannabis industry, which will reach $3.7 billion by the
end of 2020, more than double the $1.6 billion in 2019. CBD derivatives such as
CBD-infused topicals, edibles, and vapes are expected to generate $900 million
next year, largely due to new regulations allowing sales of the increasingly
popular products (http://ibn.fm/sCHP2).
U.S. sales of hemp-based CBD products are projected to reach
$22 billion by 2022, up from $591 million in 2018. This is equivalent to a CAGR
of 147 percent according to Brightfield Group research (http://ibn.fm/VB68K).
HTC Extraction Systems is a hemp biomass extraction and
formulation company and a developer of patented proprietary technologies
designed for the extraction of biomass, gas and liquids, as well as the
distillation and purification of ethanol and ethanol-based solvents used in
extraction. Engineered to large-scale, HTC’s extraction and purification
systems reduce operating costs and capital expenditures while simultaneously
delivering superior performance through lowered energy usage and emissions, as
well as improved quality of the final product.
For more information, visit the company’s website at www.HTCExtraction.com
NOTE TO INVESTORS: The latest news and updates
relating to HTC are available in the company’s newsroom at http://ibn.fm/HTC
About QualityStocks
QualityStocks is
committed to connecting subscribers with companies that have huge potential to
succeed in the short and long-term future. It is part of our mission statement
to help the investment community discover emerging companies that offer
excellent growth potential. We offer several ways for investors to learn more
about investing in these companies as well as find and evaluate them.
QualityStocks (QS)
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
Please see full terms of use and disclaimers on the
QualityStocks website applicable to all content provided by QS, wherever
published or re-republished: http://www.qualitystocks.net/disclaimer.php
No comments:
Post a Comment