Last month, we published an article that highlighted Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ) as an attractive play on the cannabis and psychedelic extract market.
Our thesis is based off the strength of the management team, the structure of the business, and the potential catalysts for growth. Going forward, we believe that Pure Extracts is well positioned to capitalize on burgeoning market opportunities and wanted to issue and update on the operator.
Last week, Pure Extracts reported to have strengthened its balance sheet by increasing the size of its non-brokered private placement offering of special warrants to up to $5 million. When the development was announced, the company announced that it closed a lead order for the financing and issued more than $3 million worth of special warrants.
Going forward, Pure Extracts plans to use the capital from the special warrant financing to increase extraction capacity. We are favorable on the potential value that can be generated by the Company’s platform and believe that it has significant potential catalysts for growth.
In 2019, we visited Pure Extracts’ state-of-the-art processing facility and left the visit feeling excited about the opportunity. The facility has been constructed to European Union GMP (EU GMP) standards which is significant since it will allow the Company to export products and formulations to certain markets in the EU.
One of the biggest potential catalysts for Pure Extracts is related to the granting of a Dealer’s Licence from Health Canada. Last month, the Company reported to be preparing an application for a Dealer’s Licence which provides the framework for legal access to controlled substances, as well as the control and regulation of production, distribution and sale of psilocybin.
Shortly after Pure Extracts announced that it was preparing an application, it reported to have started a study on the formulation and manufacturing of psilocybin based active treatments for oral tablets, capsules and a nasal gel that will be used as an investigational product.
The study with be conducted at the Toronto Institute of Pharmaceutical Technology (TIPT) by Dr. Alexander MacGregor, who is an important scientific advisor on the Pure Extracts team. The study will focus on testing rapid onset psilocybin that come in dosed formats that could be used in future efficacy clinical trials by both Pure Extracts and its pharmaceutical customers. The study will conform to both Canadian Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) standards and we are favorable on this aspect of the story.
Dr. MacGregor is an expert in pharmaceutical technology and novel drug delivery systems. His inventions have led to the development of groundbreaking therapeutic drugs for the treatment of cancer, management of diabetes, systemic infections and post-operative pain. His company has a Health Canada Drug Establishment Licence, a Cannabis Drug Licence and a Dealer’s Licence and is allowed to possess psychedelic drug compounds. We are favorable on the expertise that Dr. MacGregor brings to Pure Extracts and will monitor how he is able to support the business through the study and his experience.
We expect to see Health Canada grant a Dealer’s License to Pure Extracts and believe that it would position the business to capitalize on unique growth verticals. Pure Extracts is one of the few businesses to be focused on both the cannabis and the psychedelic extract business and we are favorable on how the story has advanced.
If you are interested in learning more about Pure Extracts, please send an email to email@example.com with the subject “Pure Extracts” to be added to our distribution list.
Pursuant to an agreement between StoneBridge Partners LLC and Pure Extracts Technologies Corp. we have been hired for a period of 180 days beginning November 1, 2020 and ending May 1, 2020 to publicly disseminate information about (PULL) including on the Website and other media including Facebook and Twitter. We are being paid $7,500 per month (PULL) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own one hundred seventy six thousand eight hundred and twenty nine (176,829) shares of (PULL), which we purchased via private placement. We plan to sell the “ZERO” shares of (PULL) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (PULL) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.