- Canada House subsidiary Abba Medix to distribute Pure Extract line of full spectrum oil vape and edible products throughout its nationwide network
- Partnership widens Pure Extracts’ footprint in Canada’s growing Cannabis 2.0 market
- Global extraction product market expected to reach $28.5 billion in next six years
- New agreement strengthens Pure Extracts’ sales channels as it looks towards international expansion
There’s plenty of media coverage about increasing legalization of cannabis for medical and adult recreational use driving a broad market expected to reach $73.6 billion by 2027 (https://cnw.fm/zWr9X), but not as much about the cannabis extraction market that is growing at nearly the same annual clip (18.1% vs. 16.6%, respectively) to reach $28.5 billion at the same time (https://cnw.fm/j3Pv1). Perhaps it is because people can easily grasp the top-level idea of smoking cannabis buds, while the idea of processing cannabis and hemp into tinctures, oils, vapes, edibles and other products like Pure Extracts Technologies (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ) does is far more complex. It’s arguable, though, that buds, excluding high-end crafts and medical grade, are a bit of a race to the bottom with pricing while extraction products seem sexier with their diversity of applications and higher margins.
The onset of Cannabis 2.0, the colloquial name for regulatory changes late in 2019 that legalized marijuana derivative products in Canada, paved the way for a spate of new products to hit retailer shelves in 2020, but the momentum has been a slow build that is now accelerating. Data from Statistics Canada shows that 527,987 units of adult-use extract products were bought in Canada in January 2020, a figure that swelled to 1.33 million units in October 2020 (https://cnw.fm/HQXyh). Increased awareness as to the bevy of benefits of cannabis compounds amongst consumers and patients is expected to drive market growth going forward, according Data Bridge Market Research, which predicts a 21.0% CAGR to 2027 for the extract market (https://cnw.fm/xnnNR).
As consumer uptake grows, Pure Extracts is positioning to widen its Canadian footprint for its lineup of Cannabis 2.0 products. On Friday, the Vancouver-based company said it partnered with integrated medical cannabis company Canada House Wellness Group (CSE: CHV). Per the pact, Canada House’s Abba Medix Corp. unit will distribute Pure Extracts’ line of concentrate products through its established provincial distribution channels.
Pure Extracts CEO Ben Nikolaevsky sees the new partnership as a quick and efficient way to get the Company’s line of full spectrum oil vape and edible products to retail buyers across Canada while their Sales Amendment application is being processed by Health Canada.
“We’ve been extremely impressed with the Pure Extracts team and the brand presence they have established, particularly in the western provinces, and are looking forward to supporting their commercialization efforts in a mutually beneficial way,” commented Canada House CEO Chris Churchill (https://cnw.fm/P2aYD).
Pure Extracts operates a 10,000 square foot state-of-the-art processing facility situated 20 minutes north of Whistler, British Columbia. The new facility was purpose built to European GMP (good manufacturing practices) standards as Pure Extracts looks ahead towards export sales of products and formulations, which include not only cannabis, but hemp biomass, and functional and psychedelic mushroom products as well.
Already possessing a Standard Processing License by Health Canada under the Cannabis Act, Pure Extracts is aligning for additional licenses and certifications that will facilitate exporting a diverse product line. These are expected to include even products restricted in Canada at this time, but legally available in countries internationally.
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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