- Pure Extracts plans affiliate partnership to install cannabis and hemp extraction system in existing Michigan facility
- Company CEO notes excitement about launching into first US initiative with experienced and entrenched partners
- Agreement outlines planned renovation of existing 2,600-square-foot facility located in central Michigan
Pure Extracts Technologies (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ), a plant-based extraction company focused on cannabis, hemp and functional mushrooms, has inked a letter of intent (“LOI”) to form a joint venture that paves the way for the company’s entrance into the United States. Based on the LOI, PULL will partner with the affiliate of a publicly traded multi-state operator (“MSO”) to install a cannabis and hemp extraction system in an existing Michigan facility.
“We are really excited about launching our first US initiative into the dynamic Michigan market, especially with experienced and entrenched partners,” said Pure Extracts’ CEO Ben Nikolaevsky. “There is strong demand throughout the state for the products we know best: full spectrum oil (‘FSO’) vapes, live resin concentrates and edibles. With immediate access to the MSO affiliate’s 100+ dispensary customers out of Michigan’s nearly 400 licensed dispensaries, we expect our products to be distributed and on shelves in Q4 of this year.”
Pure Extracts’ JV announcement noted that its MSO partner has a history of success in Oregon offering a variety of products including sun-grown and indoor premium flower, along with patented nitro-sealed indoor and sun-grown pre-rolls and jars. The MSO also grows and packages the same products in Michigan; the products are sold in more than 100 retail dispensaries located throughout the state.
According to the LOI, the two companies intend to renovate 2,600-square-feet of underutilized space within the existing facility located in central Michigan, where some of the state’s most promising cannabis markets are within two hours. The JV will combine Pure Extracts’ extraction, vape, live resin and edibles manufacturing skills with the MSO affiliate’s local permitting, licensing, and marketing expertise to deliver a line of high-quality products that are ideally suited for Michigan’s cannabis consumers. In addition to Pure Extracts’ exclusive product lines of vapes and edibles, the partners plan on an initial white-label order for live-resin concentrates from the MSO affiliate, which is planning to build-on the exceptional reputation its products have already gained within the Michigan marketplace.
Pure Extracts noted in the announcement that it anticipates contributing a mix of equipment and cash to the JV. The intent is for the JV to scale-up to meet the rising demand for recreational cannabis concentrates and edibles throughout the state.
“Michigan is one of the fastest-growing cannabis markets in the U.S,” said Bruce Linton in a recent Forbes article. Linton was a co-founder and former CEO of cannabis giant Canopy Growth and is currently executive chairman of Michigan-based cannabis company Gage Growth Corp. His comment is validated by the state’s recent reported numbers.
According to the Michigan Marijuana Regulatory Agency (“MRA”), in February 2021, Michigan cannabis sales increased 160% from the previous February, reaching an estimated $106.2 million. Those numbers show medical sales improving 48% to $38.1 million and adult-use sales seeing triple digit growth, totaling more than $68 million, which is a 353% increase. These numbers follow similar patterns seen in other states such as California and Colorado, where sales of extracts and concentrates have overtaken sales of dry flower.
Pure Extracts is dedicated to developing its portfolio of cannabis 2.0 products. The company is particularly focused on its 34 proprietary formulations of Pure Pulls branded full-spectrum oil (“FSO”) vape products and on its new line of Pure Chews edible gummies.
Pure Extracts features an all-new, state-of-the-art processing facility located just 20 minutes north of world-famous Whistler, British Columbia. The bespoke facility has been constructed to European Union GMP standards aiming toward export sales of products and formulations, including those currently restricted in Canada, into European jurisdictions where they are legally available. In September of last year, Pure Extracts was granted its Standard Processing License by Health Canada under the Cannabis Act. The company’s stock began trading on the Canadian Securities Exchange (“CSE”) in November 2020.
For more information, visit the company’s website at www.PureExtractsCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to PULL are available in the company’s newsroom at https://cnw.fm/PULL
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