May 5, 2022 — Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ) (“Pure Extracts” or the “Company”), a plant-based extraction company focused on cannabis, hemp and the rapidly emerging psychedelic sector, is pleased to provide a brief summary of recent activities.
The Spring season has arrived, and with it a significant lessening of Covid-19 health measures. This is providing a return to a degree of normalcy here in Canada. That said, the Winter months were tough in the cannabis industry as most of the provinces slowed down both the frequency and size of their purchases. Fortunately, despite an oversupply of dry flower in the marketplace, the extraction sector is now experiencing growing demand and continues to present new and innovative products to consumers as they expand their appetites beyond dry flower. In fact, we have received purchase orders (POs) from 6 provinces within the last 2 months, including an initial ‘6-figure’ PO from Nova Scotia. Since our last update, our continued expansion across Canada positions the Company to report on several positive activities we can offer our growing base of partners, stakeholders and shareholders alike.
Market Awareness and Product Distribution
Our first and strategically most important update is that Pure Extracts’ products are now listed for sale at licensed outlets throughout British Columbia (BC), Alberta (AB), Saskatchewan (SK), Ontario (ON), New Brunswick (NB) and are expected to be in Nova Scotia by the end of May.
The product mix encompasses 32 SKUs currently available in each respective provincial recreational cannabis market, and further offers 10 SKUs specifically targeting the medical cannabis supply chain.
The product lineup has been increased to include 2 important additions: a Pure Pulls branded one-gram, high-potency (90%), botanical terpene infused, THC distillate vape cart called 9 lb Hammer and a Pure Pulls branded one-gram cured resin called Durga Mata. Demand for our 9 lb Hammer is especially strong and will be our first SKU that is listed in all 6 provinces that our products are sold in. Cured resin has long been popular in the United States and we expect that it will be met with positive consumer uptake here in Canada.
Pure Extracts’ CBD gummies, offered in their sector-leading unique blister packaging, continue to report growing market share across the country. Our new large pack format of ultra-high potency CBD gummies offers both 600 mg and 1,000 mg quantities. Medical sales continue to expand through the Abba Medix sales platform, notably in the THC vape and CBD gummie product lineup.
Our in-house services continue to see demand from other LPs. The two most active services include our white label and tolling business development for industrial-scale customers. We are pleased to have signed one new white label program for the production of vape cartridges.
Head Count
The Company has streamlined the workforce at its Pemberton facility and reduced the number of full-time employees in favour of hiring part-time staff during peak manufacturing, packaging and shipping periods.
New Product Development
Pure Extracts’ development team sourced a new vape cart manufacturer that provides both cost effective pricing and higher quality than our previous supplier and we are in the midst of switching over to the new carts. The manufacturer has a robust supply chain, meets the highest global manufacturing standards and carries inventory in Canada, thus providing reliable and timely shipping to our Pemberton facility. They also offer bespoke testing at their Canadian lab for new product development and optimization of vape cart configuration.
Our development team is working on a new infused-product and is expected to be executing an unveiling and product launch aimed at new product SKU’s targeting the Canadian marketplace within the next quarter. Until then, we are keeping details to a minimum as we hope to earn marketing leverage of a very underserved product mix that we believe will position well with our brand identity and distribution ability.
We also have 2 new SKUs in development to compliment our recently launched high potency vape carts and cured resin products. This will provide additional flavour profiles for consumers to choose from.
Sales & Marketing
Enhanced social media & sales support strategy:
- Our dedicated Pure Extracts social strategy (Pure Pulls and Pure Chews) now includes daily posting of a curated feed promoting organic engagement across Instagram, Twitter, Facebook and LinkedIn.
- Creation of a dedicated Pure Mushrooms social strategy (for Maitake, Reishi, Lion’s Mane) including daily curation of information promoting organic engagement across Instagram, Twitter, Facebook and LinkedIn
- Ongoing effort and close collaboration with Cannavolve, our national cannabis sales agency and their team on the ground across Canada to promote and secure additional points of purchase for Pure Pulls and Pure Chews
- A full complement of sales material has been developed to support sales activities in the field.
- Product knowledge training is actively underway for field sales reps and budtenders (both on-site and virtually).
- Acquiring timely data directly from dispensaries in order to strengthen our direct dialogue and manage production in-line with demand.
Michigan Facility Update
In Michigan, our extraction joint venture (JV) company, Pure Grown Extracts, LLC (“Pure Grown Extracts”), has now received both its recreational and medical Prequalification Status Letters from the Michigan Marijuana Regulatory Agency (MRA). Pure Extracts business development and sales team has toured the Michigan market with our JV partner resulting in meetings with some of their 100+ existing dispensary clients as part of the process to develop specific products tailored to regional consumers.
Mushroom Sector Business Development
Our functional mushroom business continues to advance with the development of a blended product formula scheduled for launch later this quarter. Implementation with Amazon Canada experienced some initial issues which have been overcome and we are now on-track to offer cross-border sales with the commencement of a marketing campaign focused on gaining segment visibility and sales penetration of our Pure Mushrooms brand.
The Company recently received a positive response from Health Canada regarding our Dealer’s Licence application giving us the greenlight to commence building-out our existing space whenever we are ready. The receipt of a Dealer’s Licence would allow us to directly handle controlled substances at our extraction facility in British Columbia.
Near Term Summary
Our near-term goals include product launches in Nova Scotia this month, expanded listings in Ontario next month, and the listing of our products through a relationship with a national pharmacy chain later this quarter. We continue to focus on distribution to medical patients through specific channel partners, with additional medical SKUs planned for later this year.
In Conclusion
The Team at Pure Extracts continues to deliver high quality products into what is a very demanding marketplace. We have successfully expanded to 6 provinces in a short timeline, and we don’t intend to slow down any time soon! We are very grateful to have the opportunity to work with such a dedicated and committed team who really pulled together as our entire society has had to struggle against unprecedented conditions. It’s a real joy for us all to know we have earned the trust and loyalty of so many consumers, partners and shareholders who share our vision for success. We remain focused on growth, innovation, and value generation. We invite everyone to stay engaged with us, either through social media or by signing up on our website for regular news alerts, because we will have much more to talk about in the months ahead.
ON BEHALF OF THE BOARD
“Ben Nikolaevsky”
Ben Nikolaevsky
CEO and Director
About Pure Extracts (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ)
Pure Extracts Technology Corp. features an all-new, state-of-the-art processing facility located just 20 minutes north of world-famous Whistler, British Columbia. The bespoke facility has been constructed to European Union GMP standards aiming towards export sales of products and formulations, including those currently restricted in Canada, into European jurisdictions where they are legally available. Pure Extracts was granted its Standard Processing License by Health Canada under the Cannabis Act on September 25, 2020, and its Sales Amendment on July 19, 2021. The Company’s stock began trading on the Canadian Securities Exchange (CSE) on November 5, 2020.
