Why Extracts Are the Key to Plant-based Medicine
July 30th, 2020
App, Exclusive, Psychedelics, Top Story
Plants have long been a source of beneficial pharmaceutical compounds, but extraction transformed these plants into the medicines that we know today. With the rapid growth in the cannabis and psychedelic industries, investors may want to keep an eye on extraction companies that have experience in regulated markets. These extracts could pave the way for a new breed of pharmaceuticals geared towards mental health and wellness.
Let’s take a look at why extracts are key to plant-based medicine and why Pure Extract Technologies Inc. (“Pure Extracts”) CSE: PULL (listing pending) is uniquely positioned in the functional and psychedelic mushroom space.
Why Extracts Are Important
Nearly half of all human pharmaceuticals in use today were originally derived from natural sources. For instance, aspirin evolved from a compound found in the bark and leaves of the willow tree and the cancer treatment Taxol was isolated from the Pacific yew tree. The problem is that each natural source, such as a tree, contains different amounts and combinations of chemicals.
Extraction is the process of isolating and removing specific compounds from natural sources in order to create safe and consistent medications—it’s a lot easier to consume one 325mg tablet of aspirin than to harvest willow tree bark and attempt to consume an appropriate amount in tea. Patients taking medications know that they’re taking a known chemical at a precise dosage.
There are many different ways to go about extracting specific compounds from natural sources. For example, ethanol, butane and CO2 extraction have become commonplace in the cannabis industry where companies extract THC, CBD and other cannabinoids and terpenes. There are many other techniques used for other natural products, ranging from maceration to microwave assisted extraction.
Psychedelics & Extraction
The psychedelics industry is similar to the cannabis industry in that it involves harnessing natural plants for their chemical properties. Like THC and CBD, psychedelic compounds have a profound impact on the brain that could be beneficial in treating many different medical conditions. Research has shown that psychedelics could address a wide range of mental disorders, from depression to anxiety.
Mushroom extraction involves treating mushroom materials with a suitable solvent and filtering away the insoluble materials before evaporating the solvent to concentrate the extract. The result is an extract that has many different molecules with various properties. Extracts can be further purified using distillation, chromatography or crystallization to fine-tune what molecules remain in the end product.
The extraction process could yield many new and innovative mushroom-based products. For instance, psilocybin derivatives could produce specific effects or reduce undesirable side effects. Psychedelic compounds could also be combined with existing pharmaceutical drugs to treat mood disorders by concurrently administering small amounts of psilocybin or other compounds.
Investing in Extraction
There are many companies involved in the extraction of cannabinoids and other natural products, but they use a variety of different technologies and methods. The high level of contaminants present in cannabis products industry wide is a testament to the need for better quality control among extraction companies, which means investing in better equipment, people and processes.
Pure Extracts leverages CO2 extraction technology to derive full spectrum oil from cannabis biomass. With the capacity to process over 100,000 kilograms of biomass per year, the Company is one of the leading cannabis extraction firms in the world. The Company also specializes in helping develop consumer-focused brands and unique product formulations for its clients.
In addition to its cannabis and CBD business, the Company is ideally positioned to rapidly develop and commercialize functional and psychedelic medicinal products to serve both functional consumer and psychedelic pharmaceutical brands. Pure Extracts can also help these companies develop brands and formulate innovative new products in the nascent sector.
Extraction is a compelling business model because a single extraction company works with many different clients, providing a diverse revenue stream that’s not dependent on any single customer. The extraction company’s revenue also scales up with its clients’ successes with a simple recurring revenue business model that offers higher margins than other businesses dealing with consumers.
Investors may want to keep an eye on the stock as it gears up for a near-term public listing. For more information, visit the company’s website or download their investor presentation.
Pure Extract Technologies Inc.
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