Pure Extracts Technologies Corp. has officially commenced trading on the Canadian Securities Exchange (CSE) as of November 5th, 2020 with the stock symbol PULL.CN. As a company that we’ve been following for over a year, we’re quite familiar with the business and its key components.
As an extraction company poised to capitalize on the existing cannabis market, as well as the growing functional mushroom and psychedelic industries, PULL is poised to ride the regulatory changes that are rapidly transforming the drug space.
Continue reading for an introduction to Pure Extracts including their business model, competitive advantage, and future direction:
Biomass Extracts (THC, CBD, & Mushroom Extracts)
Cannabis edibles, extracts, and topicals became legal on October 19, 2019. For those of you thinking that cannabis has been legal in Canada much longer than that… you’re right. While cannabis itself became legal in Canada on October 17, 2018, it took another year for regulators to pass “Cannabis 2.0”, legalizing the extraction, production, and commercialization of cannabis byproducts. Since this time, Health Canada has continued to strictly monitor the process and only award select manufacturers Standard Processing Licenses, allowing them to cultivate, process, and sell cannabis and its extracts.
The receipt of a Standard Processing License has put PULL “on a path to deliver full-spectrum oil products by the end of Q4, 2020”, according to CEO and Director, Ben Nikolaevsky.
For those unaware of what “extracts” are, these are specific chemical compounds taken out of biomass and processed into a concentrated form, such as an oil. The two main compounds of interest within cannabis are tetrahydrocannabinol (THC), the psychoactive component (aka, what gets you high) and cannabidiol (CBD), the non-psychoactive component (derived from hemp). THC extracts are typically a solution for those looking for the classical benefits of marijuana with more precise dosing and refined flavours, without having to smoke anything. CBD extracts are typically used by those who desire treatment for seizures, anxiety, pain, and more – though these claims have considerably less scientific evidence behind them.
Since mainstream commercialization of cannabis extracts, the industry has evolved to become more akin to alcohol with recognized brands, customer loyalty, and specific preferences. For this reason, extracts can be viewed as more traditional consumer products, compared to dry flower cannabis (which is more akin to produce or other plants).
Pure Extracts is actively working toward expanding their product offering to include extracts from ‘functional’ and psychedelic (aka, magic) mushrooms. Functional mushrooms are touted by health gurus to improve many areas of mental and physical health including memory, immune support, stamina, and more. Psychedelics – specifically “magic mushrooms” – are experiencing extreme forward momentum as legalization is attained throughout the United States, with two states legalizing its use in therapeutic settings, and four cities decriminalizing the substance.
Pure Extracts’ Extraction Process
With alcohol, specific distillation processes take place in order to achieve your intended outcome. For example, bourbon must age in a barrel for at least two years to be considered a straight bourbon, whereas tequila may be aged in stainless steel, or not at all. These nuanced differences allow alcohol manufacturers to establish recognizable taste in their products and thus, cultivate a recurring customer base. Biomass extracts are similar.
Pure Extracts has developed a fully functional facility in Pemberton, BC, Canada, where they practice a specific extraction process involving carbon dioxide (CO2). CO2 extraction is a relatively new process used to “extract the essence of the source material” (also known as full-spectrum extraction) which, instead of isolating one specific compound (such as THC or CBD), involves maintaining the full profile of the biomass, extracting all compounds at once. In other words, PULL is taking the entire mushroom or cannabis flower and turning it into oil. This specific process is considered to be more beneficial for the end user as valuable, minor compounds are retained throughout the process.
Furthermore, as many of the benefits and general effects of cannabis, functional mushrooms, and psychedelics are not yet understood, maintaining the comprehensive profile of a specific biomass is incredibly important for research.
Pure Extracts considers Brand Development to be one of their chief business objectives. Instead of simply producing cannabis oils and other extracts, PULL realized that an industry with fragmented market leadership is primed for the introduction of leading brands, utilizing experience in consumer goods and similar industries. They are prepared with a “Brand Expansion Plan” to extend their properties and become household names, given adequate momentum.
The learning curve required to operate in a regulation-heavy industry, such as cannabis, is steep; however, once institutional knowledge is attained, it becomes significantly easier to expand into other, similar industries. One such industry that’s currently experiencing rapid growth is the functional mushroom space. Functional mushrooms are supposedly capable of providing various physical and mental benefits to users and the market has grown exponentially in the past year, with Europe as the leader in terms of global growth.
Currently, the functional mushroom market is extremely fragmented, undercrowded, and growing at an average compound annual growth rate of 8.04% from 2019 to 2024, to reach an expected USD 34.3B.
In addition to functional mushrooms, the company has pivoted to focus on psychedelics, including magic mushrooms, so that they can enter the growing space while it’s still in its infancy. As further legalization rolls out throughout Canada, Europe, and the United States, demand is going to increase for concentrated, precisely measured psilocybin extracts, in order to continue research. If PULL manages to establish themself in the space prior to the demand wave, the company will massively benefit from a first-mover advantage and known profile as a vendor.
PULL’s Pemberton facility has been built to be fully compliant with not only Canadian regulations, but also with European Union GMP standards, allowing for ease of expansion to Europe, where many countries have already legalized both cannabis and mushroom extract products.
Read the Full Press Release Here:
PURE EXTRACTS TECHNOLOGIES CORP. TO COMMENCE TRADING ON THE CANADIAN SECURITIES EXCHANGE (CSE)
Vancouver, B.C., November 3, 2020 Pure Extracts Technologies Corp. (“Pure Extracts”), a plant-based extraction company focused on cannabis, hemp, and functional mushroom sectors, is pleased to announce that the company’s stock will commence trading on the Canadian Securities Exchange (“CSE”) under the symbol “PULL” on November 5, 2020.
“There currently is a tremendous consumer demand for natural health products with the ability to immediately enhance our quality of life. With Health Canada officially granting Pure Extracts a Standard Processing License under the Cannabis Act, this has put us on a path to deliver full-spectrum oil products by the end of Q4, 2020” said chief executive officer Ben Nikolaevsky. “Our trading debut on the CSE is another vote of confidence in our ability to effectively meet the needs of consumers focused on receiving cannabis, hemp and functional mushroom products.”
Pure Extracts would like to thank its expert tradespeople who worked tirelessly on its state-of-the-art facility in Pemberton, BC, its team of dedicated employees, and the investors who have financed the company for a total $9.45MM CAD allowing it to become a world-class, plant-based extraction company.