- For
some 15 years, HTC Extraction Systems has built an IP that distills and
recycles ethanol and ethanol-based solvents, and is now turning its
experience to the cannabinoid extract industries’ potential
- While
regulatory federal officials in the United States continue to regard
cannabinoid extracts such as cannabidiol (CBD) as potentially unsafe for
ingestion, the producers of topicals and oils served by extractors such as
HTC Extraction Systems continue to enjoy high-margin possibilities
- The
company is installing new equipment at the California-based and
Saskatchewan facilities that will give it the capacity to process up to
12,000 pounds of hemp biomass per day at the California site and up to 2
million kg per year for phase 1 at the Canadian site
- HTC’s
most recent financial report stated revenues had risen nearly 200 percent
on a year-over-year basis, despite the market difficulties many industry
players faced during the year
Despite a growing social acceptance, and in many cases even
an active embrace, of cannabinoid-derived products for enhancing personal
wellness, regulatory liberation in the United States has remained ambivalent
and the cannabinoid industry’s biggest players have seen their stocks hammered
by a variety of adverse forces throughout North America (http://ibn.fm/AbiTl).
The federal government delivered hope to cannabinoid
connoisseurs at the end of 2018 with its passage of the Farm Act that lifted
prohibitions against hemp cultivation, but the end of 2019 brought the Food and
Drug Administration’s (FDA’s) less-than-encouraging warning that it still does
not consider CBD a safe food additive (http://ibn.fm/4DD8P).
While the differing points of view regarding CBD and other
cannabinoids even at the administrative levels of state and federal governments
foster ongoing debate and legislative wrangling, extraction-service providers
such as HTC Extraction Systems (TSX.V: HTC) (OTCQB: HTPRF) may
expect to remain above the fray as they process hemp biomass to obtain resins,
distillates, concentrates and select cannabinoids for high-margin derivatives.
Topicals and oils have largely avoided the attention of the
FDA as long as they have avoided making unsubstantiated medical claims in their
marketing and packaging. That in turn means companies specializing in the
extraction of cannabinoids for such products can prove to be a refuge for
investors looking for a cannabinoid-related industry to take off (http://ibn.fm/fO9wI), regardless
of the FDA’s eventual decision.
HTC Extraction Systems has built its proprietary
purification technologies on the 15 years of advances it has made in
distillation processes that remove ethanol and ethanol-based solvents used in
the extraction process. The company’s trademarked Delta Reclaiming System
technologies for CBD, solvents and glycols recycle and reuse the extraction
ethanol used in the CBD extraction process, limiting CBD waste through the
re-extraction of all wastes collected from the purified ethanol, according to
the company.
HTC Extraction Systems’ working relationships with other
cannabinoid industry players further shore up its revenues possibilities. Most recently,
the Canadian company recently closed its acquisition of a California-based
company in the United States. The recently acquired, Kase Farma Inc., is
authorized to work with hemp cultivation, extraction, refining, formulation and
business operations in the world’s largest cannabinoid market (http://ibn.fm/KBooK), and HTC
Extraction will reap the experience of Kase Farma’s former owner, Starling
Brands, Inc., which remains involved through a management services agreement
for navigating the business and regulatory climates in California.
New equipment that will enable Kase Farma to process and
distill up to 12,000 pounds a day of dried hemp biomass that, at an 8 percent
CBD yield, will give over 400,000 grams daily of CBD and a sizable profile
during the upcoming cultivation season. New equipment HTC Extraction Systems is
installing at its Saskatchewan facilities will similarly allow the company to
receive a projected 2 million kg of hemp biomass for extracting CBD
Full-Spectrum Oil (FSO) distillate north of the border under a tolling strategy
coordinated with highly recognized area farmers.
While year-end financial reports are pending, the company’s
third-quarter statement reported revenues had grown by nearly 200 percent
year-over-year, further demonstrating HTC Extraction Systems’ potential for
financial strength (http://ibn.fm/VmA5S).
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
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Editor@QualityStocks.com
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www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
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