- HTC has completed a 19,000-square-foot tolling facility near Regina, Saskatchewan that will house extraction and are awaiting GMP Euro compliance
- Company closed a $10 million private placement of 25 million units to fund expansion operations
- U.S. sales of hemp-based CBD products to peak at t $22 billion in two years, projected CAGR of 147 percent
HTC Extraction Systems (TSX.V: HTC) (OTCQB: HTPRF), a hemp biomass cultivation, extraction, formulation and refining entity, is positioned for a truly soaring bottom line driven by major investments and acquisitions in the fast-growing cannabidiol (CBD) and cannabinoid market. The company recently closed a private placement with gross proceeds of $10 million to finance 25 million units of the company (http://cnw.fm/8fBRa) – proceeds used to fund growth plans.
To this end, HTC recently acquired California-based Kase Farma Inc., (www.KaseFarma.com) which aims to provide users the health and wellness benefits of CBD, cannabigerol (CBG), cannabinol (CBN) and other cannabinoids by producing high-quality, premium hemp goods using best of class methods and maintaining a firm engagement to customers, community, and the environment. Kase Farma will also provide white-label manufacturing for other cannabinoid suppliers.
The company recently 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 arriving in December 2019 with installation to follow. HTC has also 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’s other strategic initiatives include tolling contracts, marketing and distribution agreement, extraction equipment purchasing, and project construction update.
A tolling contract between HTC and a 60,000-acre Canadian IPGrow™ hemp biomass producer for the 2019, 2020, 2021 and beyond production crop years will soon take effect. The contract is anticipated to represent production from a single producer/biomass processor of approx. 4,300 acres from the 2019 crops, up to 25,000 acres for the 2020 and 2021 and beyond production crop years.
As a developer of proprietary gas, liquid, and biomass extraction systems that are designed for the extraction of gas, liquids, and biomass, and the distillation and purification of ethanol and ethanol-based solvents used for this extraction, HTC Extraction Systems has a highly positive outlook when it comes to CBD market expansion, with major investments in the acquisition of extracting, purifying and refining equipment.
Demand for cannabinoids is growing constantly, and, given that cannabis is still a Schedule 1 drug, according to the Federal government, extraction from cannabis comes with certain legal risks. To avoid legal issues, many companies, including HTC Extraction Systems, focus their efforts on extracting cannabinoids from hemp. This has led to the fast expansion of the hemp industry and especially of the hemp-derived CBD market. According to industry analyst Brightfield Group research, 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 (http://cnw.fm/oCrb7).
HTC Purenergy Inc. trades on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.OTCMarkets.com.
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://cnw.fm/HTC
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