20:08:47 EDT Mon 19 Apr 2021
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Pure Extracts Technologies Corp
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Close 2021-04-07 C$ 0.50
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Pure Extracts Tech enters JV LOI for Michigan system

2021-04-08 02:48 ET - News Release

Mr. Ben Nikolaevsky reports


Pure Extracts Technologies Corp. has signed a letter of intent (LOI) with the affiliate of a publicly traded multistate operator (MSO) to form a joint venture to install a cannabis and hemp extraction system in an existing Michigan facility.

This MSO has a long history of success in Oregon, offering a family of products including sun-grown and indoor premium flower, along with patented nitro-sealed indoor and sun-grown prerolls and jars. These products are also grown and packaged in Michigan for retail sale in over 100-plus dispensaries throughout the state.

Pure Extracts is a plant-based extraction company focused on cannabis, hemp, functional mushrooms and the rapidly emerging psychedelic sector from a state-of-the-art processing facility located just north of Whistler, B.C.

In Michigan, the companies plan to join forces by combining the MSO affiliate's local permitting, licensing and marketing expertise with Pure Extracts' extraction, vape, live-resin and edibles manufacturing skills. The venture partners plan to build out 2,600 square feet of existing, underutilized space in the MSO's current facility, which is strategically located in central Michigan within a two-hour drive of several major markets.

Pure Extracts expects to contribute a mix of equipment and cash to the venture, which will allow the partners to rapidly scale up to meet the rising demand for recreational cannabis concentrates and edibles throughout the state.

Michigan is anticipated to follow similar consumer trend patterns experienced in other states such as California and Colorado, where sales of extracts and concentrates eventually overtake sales of dry flower.

Bruce Linton, co-founder and former chief executive officer of cannabis giant Canopy Growth and executive chairman of Michigan-based and newly public Gage Growth Corp., recently commented in Forbes, "Michigan is one of the fastest-growing cannabis markets in the [United States]." According to the Michigan Marijuana Regulatory Agency (MRA), during February, 2021, Michigan cannabis sales increased 160 per cent from a year ago to $106.2-million (U.S.), with medical sales improving 48 per cent to $38.1-million (U.S.) and adult-use sales soaring 353 per cent to $68.1-million (U.S.).

In addition to manufacturing Pure Extracts' proprietary brands of vapes and edibles, the JV partners anticipate an initial white-label order for live-resin concentrates from the MSO affiliate as that company continues to build on the outstanding reputation its dry-flower products have already garnered within the Michigan marketplace.

Pure Extracts chief executive officer Ben Nikolaevsky remarked: "We are really excited about launching our first U.S. initiative into the dynamic Michigan market, especially with experienced and entrenched partners. 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-plus dispensary customers out of Michigan's nearly 400 licensed dispensaries, we expect our products to be distributed and on shelves in [fourth quarter] of this year."

Expansion of the company's operations in Michigan is subject to compliance with applicable state laws concerning cannabis, as well as general compliance with Canadian Securities Exchange policies and Canadian securities laws.

About Pure Extracts Technologies Corp.

Pure Extracts features an all-new, state-of-the-art processing facility located just 20 minutes north of world-famous Whistler, B.C. The bespoke facility has been constructed to European Union GMP (good manufacturing practice) standards, aiming toward export sales of products and formulations, including those currently restricted in Canada, into European jurisdictions where they are legally available. On Sept. 25, 2020, Pure Extracts was granted its standard processing licence by Health Canada under the Cannabis Act, and the company's stock began trading on the Canadian Securities Exchange on Nov. 5, 2020.

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