Pure Extracts: An Experienced Team with an Attractive Model

The cannabis industry has matured into a multi-billion-dollar business over the past few years, but growing interest in psilocybin and functional mushrooms has opened the door to a new horizontal business opportunity. Like cannabis, mushrooms are a natural product with medicinal properties that could address multi-billion-dollar end markets.

Pure Extract Technologies Inc. (CSE: PULL) (listing pending) is already in a great position within the cannabis industry. With falling input prices and rising demand for extracts, the Company will be able to acquire raw materials at spot pricing and convert it into high-value extract-based products. The Company’s entrance into the functional mushrooms and psilocybin space could create enormous value.

Let’s take a look at what makes the Company’s business model attractive and some upcoming catalysts for investors.

What Makes the Business Model Attractive?

[embedded content]

Pure Extracts CEO, Ben Nikolaevsky discusses efficiencies

Pure Extracts provides white label production and toll processing services to cannabis companies. From sourcing raw materials to designing packaging materials, the Company is a one-stop shop for companies licensed to sell specialized oil extracts and CPG brands seeking licensed manufacturing partners, as well as a contract processor for Licensed Producers.

There’s a key benefit to this model: The Company doesn’t have to produce any of its own biomass, which translates to far less cultivation-related overhead and no inventory risk. With dried cannabis prices hitting new lows in Canada, the Company has access to cheap raw materials at spot prices that it can use to create in-demand products for cannabis consumers.

Click here to learn more about investing in a mushroom extraction

Extraction is still relatively new in the Canadian market and extraction-related products still sell at a significant premium to traditional cannabis products. For instance, extracts are used to create everything from vape cartridges to edibles. Pure Extracts will be rolling out its own proprietary line of high-margin products into Canada’s market in Q4 2020.

Finally, the Company’s business model is diversified with exposure to cannabis, hemp, and soon, mushrooms. Investors have access to all three lines of revenue in a single business model that provides high-margin recurring revenue, low capital expenditures, and a high barrier to entry when it comes to both equipment costs, expertise and licenses.

What Are Some Upcoming Catalysts?

[embedded content]

Pure Extracts CEO, Ben Nikolaevsky discusses extraction catalysts

Pure Extracts is quickly entering the functional mushroom space and has plans to enter the psilocybin space. By repurposing its existing equipment, the Company has a competitive edge when it comes to developing functional mushroom products built with extracts, including both functional mushroom products and psilocybin extracts for medical purposes.

“Even though people have been utilizing the therapeutic benefits of mushrooms for centuries, it is really only now starting to become a trend that Main Street and Wall Street are recognizing,” said Doug Benville, Founder and COO of Pure Extracts, in a phone conversation with CannabisFN. “We’re leveraging our experience in carbon dioxide and ethanol extraction for full spectrum cannabis products to take a leadership position in mushrooms, first with functional and then psychedelic.”

Click here to learn more about investing in a mushroom extraction

The Company is applying for a Natural Health Products site license from Health Canada for functional mushroom products which could open the door to creating psilocybin extracts on a commercial scale. Its science team, bolstered by Dr. Alex McGregor, Founder of the Toronto Institute of Pharmaceutical Technology, is developing methods to extract psilocybin that could be used by researchers and pharmaceutical companies to address multi-billion-dollar mental health end markets.

The Company plans to start with tincture and soft gel products from functional mushroom extracts with plans to move into beverages and nasal sprays during the fourth quarter of this year and psychedelics in the second half of 2021.

Looking Ahead

The rise of psychedelics could be a game-changer for cannabis companies that already have the infrastructure in place for plant-based medicine, such as Pure Extracts (CSE: PULL) (listing pending). As a first-mover in the space, investors may want to take a closer look at the Company as it prepares to list on the CSE under the ticker symbol “PULL” in the near-term.

Click here to receive an investor presentation and corporate updates

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.