NICI Quick Take
Pure Extracts is a cannabis extraction company based in Pemberton, British Columbia that is actively preparing for Canadian public listing, hoping to be public by the end of the first or second quarter of 2020. Currently, the company operates out of one centralized 10,000 square foot facility for toll processing, proprietary branding, and white label production. This facility was funded by an initial $10 million financing round, where Pure sold 20,000,000 shares at $0.50.
Expansion is currently ongoing at this facility to add an additional 15,000 square feet, building to EU-GMP certifications in order to internationally distribute its products. At full capacity, the company will be able to extract over 100,000 kilograms per year of biomass.
In terms of its brand development business, it hopes to fulfill white label contracts and sell its own private label in the near term. These white label services include supplying biomass formulating custom oils, and providing consumer-ready packaging to its customers. The company is not yet licensed, but is expecting approval for its Standard Processing License in Q1 2020.
CEO Ben Nikolaevsky is an experienced business leader in the cannabis industry, with his most recent stint at Natura Naturals Inc. culminating in a $70 million sale to Canadian cannabis giant Tilray Inc. Nikolaevsky also brought Alexander Logie with him from Natura for the role of Vice President of Business Development at Pure. The pair have the experience and potential to transform Pure into another acquisition target for larger companies, and possibly a legitimate player in the extraction business.