Future Farm’s New LA Extraction Facility Sets a High Bar
August 9th, 2017
News, Top News
The cannabis industry is expected to reach $10 billion by 2018, according to Arcview Market Research, and extracts represent the fastest-growing segment. Concentrates account for between 30% and 60% of legal market sales and many experts believe those figures will only increase as users ditch cannabis flower and move toward purified extracts. These extracts are particularly helpful for pharmaceutical products incorporating cannabinoids.
In February, Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) entered into a management agreement with a Los Angeles, California-based non-profit that has a sublicense to legally manufacture cannabis oil using a non-volatile method. The company has made tremendous progress since the agreement in building out a state-of-the-art facility capable of producing high-quality, standardized, pharmaceutical-grade cannabis extracts as well as creating a pipeline of qualified sales leads which are being finalized.
“Professional extraction and refinement equipment and procedures enables us to ensure product purity, safety, and dosage control that promises to be the most valuable link in the supply chain for the future of the cannabis industry,” said Future Farm COO John Sweeney.
The patent-pending closed-loop liquid phase system uses falling film technology in a safe, non-pressurized design using alcohol as a solvent. Low temperatures and short residence times preserve all of the essential components of the cannabis plant, including cannabinoids, terpenes, and flavonoids. The company is currently is getting its trim supply from leading organic cannabis farmers to obtain the highest-quality starting ingredients for the oils.
According to the company’s investor presentation, the extraction technology is capable of processing 20 pounds of cannabis flower per hour with a 10% to 20% yield. An estimated wholesale price of $20.00 per gram means that the machine is capable of generating about $18,160 in revenue per hour. The company plans to execute sales agreements in 2017 as well as expand inventory and capacity ahead of California’s move to legalize recreational cannabis, which could create a $6.5 billion market in early 2018.
COO John Sweeney leads the team in Los Angeles with over 15 years of experience at pharmaceutical giants like Pfizer Inc. (NYSE: PFE) and Wyeth. With a focus on both leading technology and high-quality inputs, Mr. Sweeney and his team aim to produce the highest quality extracts by leveraging the company’s experience across several different industries, including lighting, vertical farming, and cultivation.
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