- HTC recently closed a bought deal private placement worth $10 million in funding
- Demand for hemp biomass continues to grow with the U.S. hemp-derived CBD market expected to reach $22 billion by 2022
- HTC’s proprietary biomass processing methodology maximizes extraction and purification of hemp biomass
After successfully raising $10 million in a private placement financing of 25 million units of the company, HTC Extraction Systems (TSX.V: HTC) is poised to expand its role in the cannabidiol (CBD) extraction market. HTC plans to use the funds for purchase of extraction, purification and refining equipment, and for general working capital purposes, the company stated in a news release (http://cnw.fm/YBa1g).
U.S. sales of hemp-based CBD products are expected to soar from 2018’s $591 million to $22 billion by 2022, growing at a CAGR of 147 percent, according to Brightfield Group (http://cnw.fm/X1nXG). Brightfield also projects Canada’s cannabis industry will total $3.7 by the end of 2020, with derivatives such as CBD-infused edibles, vapes and topicals expected to generate $900 million next year (http://cnw.fm/n9kyJ), largely due to new regulations allowing sales of the increasingly popular products.
With its proprietary hemp biomass extraction technology that reduces operating costs while delivering superior results, HTC Extraction Systems is uniquely positioned to take advantage of upcoming market opportunities such as derivative products (http://cnw.fm/okV4I). CBD extracted from hemp biomass is infused in a wide array of derivative products such as oils, edibles, beverages, tinctures and topicals, which typically reap better margins and post higher price points.
HTC already has a hemp biomass tolling agreement for the 2019 crop year involving a supply of hemp biomass, grown from five varieties of Health Canada-approved cultivars, from a hemp grower in Saskatchewan, Canada. HTC will process and extract CBD full spectrum oil (“FSO”) distillate from the hemp biomass and receive a percentage of the extracted CBD FSO distillate for its processing, extraction, purification and distillation services (http://cnw.fm/lw1G1).
Canada, which legalized limited forms of recreational cannabis for adult users in October 2018, marked the one-year anniversary on October 17, 2019, with regulations that allow sales of derivatives including edibles, vapes and topicals to consumers (http://cnw.fm/j2I5i).
For more information, visit the company’s website at www.HTCExtraction.com
NOTE TO INVESTORS: The latest news and updates relating to HTC are available in the company’s newsroom at http://cnw.fm/HTC
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