KALY Building CBD Brand As Top Quality Extract For Customers Like PURA With Potential To Grow $5 M Business Into $20 M
Dallas, Tx – June 11, 2019 Kali-Extracts, Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) (“KALY”) today published a management overview on the company’s mobile cannabis extraction capacity. KALY recently announced a contract with a New York State Licensed Hemp Cultivation Operation anticipated to generate an estimated $5 million in revenue for KALY. The extraction for the New York State Licensed Hemp Cultivation Operator will be conducted via a proprietary mobile extraction unit. With the extraction capacity being mobile, KALY management believes the company could contract potentially more than $20 million in similar contracts.
Kali-Extracts Mobile Cannabis Extraction Capacity
Central to the company’s mobile cannabis extraction capacity strategy is the fact that KALY owns and operates a U.S. Patented Cannabis Extraction Process. KALY primarily utilizes its Patented Process discovering, developing and commercializing novel therapeutics from a proprietary cannabinoid product platform in a broad range of disease areas. Given that therapeutic product development is a multi-year, multi-million endeavor, KALY has also employed its Patented Process in two ancillary lines of business that can generate revenue more immediately with less upfront investment. One, the company has its own line of Cannabis Confections infused with CBD. Hemp4mula Gum from KALY is now available, and Hemp4mula Gummies will also soon be available as the first two CBD Infused Confections of a broader planned line. Second, and the topic of this presentation, is KALY’s contract cannabis extraction business.
With the passage of the 2018 Farm Act and the corresponding legalization of hemp farming, hemp cultivation initiatives are popping up everywhere driven largely by the opportunity to produce hemp derived CBD. However, CBD extraction is a separate discipline from hemp cultivation. And the marketing of CBD is yet another separate discipline. So even if a cultivator can successful harvest a hemp crop, the finish line is still a way off.
With a Patented Cannabis Extraction Process and years of extraction expertise, KALY has a market leading extraction discipline. With years having already participated in the CBD infusion of a leading CBD Water, KALY also has the foundation of a recognized Brand for CBD extraction.
PURA – Puration, Inc. (USOTC: PURA) Branding Example
In the fourth quarter of last year, 2018, KALY acquired NCM Biotech (NCMB). In NCMB’s four years of operations, NCMB has established a great deal of extraction experience. NCMB and now KALY, among many other extraction experiences, have been a long-term partner of Puration, Inc. (USOTC: PURA) (“PURA”). PURA produces EVERx CBD Sports Water, the leading CBD infused water within the sports nutrition market. PURA has over $1 million annual sales and a $4 million revenue target for 2019. KALY can point to their success with PURA to support a top-quality CBD extraction claim.
Hemp Crop Consignment Strategy
With a Brand for Top Quality CBD Extract, KALY has more to offer a hemp cultivator than expert extraction. KALY can help a hemp cultivator market their extract. KALY’s business model for extraction is not simply to extract CBD, but to have hemp cultivation customers consign their crops to KALY for KALY to extract and market the CBD under the KALY brand name.
Mobile Extraction Lab $20 Million Scalability
KALY has already signed its first hemp cultivation consignment contract. The contract is estimated to be worth $5 million in revenue. With KALY deploying its Patented Cannabis Extraction process within a mobile lab that can be easily transported in a tractor trailer, KALY has the ability to sign hemp cultivator clients nationwide. By signing only 2 to 3 more clients of similar size of their first client, KALY could easily reach $20 million in revenue from its new cannabis extraction business this year.
To learn more about the company visit https://www.kali-extracts.com/
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.