REGINA, June 19, 2019 /CNW/ - HTC Purenergy Inc. (TSXV:
HTC) dba HTC Extraction Systems ("HTC") has developed
and optimized, proprietary extraction and purification systems
designed for extraction, and for the distillation and purification
of ethanol and ethanol-based solvents, used for biomass, gas and
liquid extraction. Recent advances include tolling contracts,
project construction, sales, offtake agreements and technology
development.
"HTC will continue to drive our business model, where we will
own physical assets at our extraction and purification facilities
while serving the clean energy and hemp biomass industries,"
said Lionel Kambeitz, Executive
Chairman, HTC Extraction Systems. "Our business model calls for
both participating equity ownership and tolling revenue. HTC will
use our technologies, construction experience and operating skills
to extract and purify hemp biomass, CBD and other cannabinoids at
our facilities."
Tolling contracts
HTC recently announced that it has entered into a hemp biomass
tolling agreement involving the supply of hemp biomass for the 2019
crop year, from a minimum of 4,200 to a maximum of 5,000 acres of
hemp grown in Saskatchewan,
utilizing five varieties of Health Canada approved cultivars as the
genetic foundation. HTC will be processing a projected
5,000,000 kg of hemp biomass and extracting CBD FSO distillate from
the hemp biomass. HTC will be receiving, as the tolling fee
payment, a percentage of the extracted CBD FSO distillate for these
processing, extraction, purification and distillation services.
HTC is in negotiations with a 60,000-acre recognized Canadian
farm leader who is a significant hemp biomass producer and HTC
intends to enter into a tolling contract with this producer for the
2019, 2020, 2021 and beyond, production crop years. This new
tolling contract being negotiated is anticipated to represent
production from a single producer/biomass processor of
approximately 4,800 acres from the 2019 crop, up to 30,000 acres
for the 2020 and 2021 and beyond, production crops years.
Hemp biomass tolling contracts with producers and hemp biomass
providers are being negotiated in the
United States for the 2020 hemp crop growing year, whereby
HTC will provide "local to grower" drying-to-biomass storage
capability, and transportation of dried biomass to an HTC
extraction facility.
In Canada, broad acre
production of hemp will redefine the global price of CBD and all of
the related cannabinoids. With changing legislation, outdoor
grower licenses will now be available in Canada under the Cannabis Act. Existing
genetics for high CBD/THC hemp are today available and new strains
are being developed for "co genetics optimization". Removal of
CBD in isolate form will leave the remaining byproducts, THC and
other cannabinoids, rich and available for THC singulation/ sale to
the THC ingredient market and other CBD cannabinoid
singulation/sale to the cannabinoid pharma market.
Project construction
HTC has focused the Canadian implementation of its BOOM (Build,
Own, Operate and Maintain) extraction tolling strategy on a
location at Port Lajord, some 17
miles southeast of Regina,
Saskatchewan. HTC has under construction a 19,000 sq. ft GMP
Euro compliant extraction tolling facility, on 6 acres of land,
which will include biomass processing, extraction, implementation
of DeltaSolv technologies and Delta Purification systems,
distillate and refining equipment, laboratory quality control and
testing operations, and on-site office and administration. These
equipment systems will be installed and commissioned inside this
new facility. HTC is developing this GMP Euro compliant
processing, extraction and refining tolling facility, as being the
highest throughput and highest product quality extraction and
refining facility in Canada.
HTC has shortlisted and is selecting a location in the United States for a large-scale extraction
facility. In conjunction with this build out of HTC's United States extraction infrastructure, there
will be the build out of semi-portable "local to grower" drying
infrastructure, that will ensure that the quality of the biomass
dried and processed ready for extraction will meet HTC's SOPs and
best practices.
HTC wishes to replicate its historical skillsets, process design
and SOPs as one of Canada's
largest CBD extractors and refiners, in the United States, utilizing its experience
gained and its intellectual property as a recognized industry
leader in ethanol-based extraction and purification. It will adapt
scalable production techniques of one of Canada's most successful and recognized
farming leaders and leverage the SOPs and best practices in
genetics, fertility, crop protection and ingredient sales with
multi-year contracts. It will further diversify production
and genetics through irrigation and provide an opportunity for two
annual crop rotations, with new high CBD genetic varieties.
Sales and offtake agreements
HTC has contracted Purely Canada Foods ™ to provide the sales
and distribution for its ingredient CBD into the market under the
brand of Purely Canada Hemp™, Purely Canada CBD™, Purely Canada
Cannabinoids™ and Purely Canada THC™. Purely Canada Foods™
will develop multi-year ingredient supply contracts with its
existing and new global food, beverage and animal food industry
customers. The multi-year supply will be risk managed with an
expanded dedicated acreage, proxy crop insurance, Act of God
clauses and customer/supplier risk formulas, effectively creating
synthetic futures contracts for the delivery to our multi-year
ingredient contracts while de-risking the supply side.
Current and New technologies
HTC has, for more than 14 years, developed and optimized,
proprietary extraction and purification systems, that have been
designed for extraction, and for the distillation and purification
of ethanol and ethanol-based solvents, used for biomass, gas and
liquid extraction.
HTC's patented Delta Purification® technology will purify,
recycle and reuse the extraction ethanol, used in CBD extraction
process, while managing and reducing any CBD waste losses, through
the re-extraction of all wastes collected from the purified
ethanol. Large users of ethanol and solvents for plant oil
extraction, demand reduced capital and operating costs. HTC's re3
(reclaim, recycle, reuse) technology can save up to 30% of the
required fluid costs. The increasing cost of new extraction
ethanol, combined with the cost of used ethanol disposal, creates a
unique opportunity whereby the re3 technology will create cost
savings, while meeting environmental responsibilities. The growth
of ethanol and CO2, used in Cannabidiol extraction (CBD
production), has created a new demand for reliable commercial scale
ethanol reclaimer systems. The Delta Purification® ethanol system
is capable of meeting this new demand.
The process of biomass processing and CBD extraction can be
divided into three stages, namely pre-oil preparation for
processing, oil extraction and oil refinement. During the pre-oil
extraction stage: the plant materials are broken down and the plant
tissue is opened for efficient ethanol penetration; the plant
biomass moisture content is reduced through gentle drying
techniques to 8-10% moisture; and the dried processed plant biomass
("Biomass") is bagged or bailed for storage. During the preparation
for CBD processing, the Biomass is immersed and penetrated with
ethanol and the resulting ethanol liquid, containing cannabinoids,
oils, ethanol and plant liquids, is removed from the plant
fibers. During the last phase, the oil is collected and 90% of
the ethanol is removed and recycled, which delivers an approximate
50% CBD oil (crude oil), providing a potential sale point.
Remaining impurities are removed, and the oil is upgraded to
deliver an approximate 75% FSO (full spectrum oil) CBD oil,
providing a potential sale point. Chromatography - Chemical
Isolation or Molecular Distillation are then utilized to achieve
the purest Isolate, free of THC and other terpenes. Many of these
refinement processes will allow the isolation of THC and other
valuable cannabinoids.
DeltaSolv® is HTC's custom designed, ethanol based, solvent
mixtures and additives that optimize extraction and ethanol
reclaiming efficiency. HTC's technology development team is
developing and testing specialized additives that will increase the
ethanol lubricity and improve ethanol to tissue penetration;
resulting in a higher extraction conversion ratio and improved
ethanol cycle time. This technology development work is being
done at HTC's sponsored research facilities at the University of Calgary.
PDOengine™ is HTC's process design algorithms which improves the
modelling and simulation of the biomass extraction process. HTC is
developing these process design algorithms to optimize the
processes of faster ethanol cycle times and the process design of
refinement to isolates.
HTC continues to evaluate synergist technology in the field of
distillate chromatography, chemical isolation and molecular
distillation. HTC is in negotiations in an effort to bring to its
extraction refining facilities, the complete flexibility of
refinement of 75% distillate sale product to CBD isolate, THC
isolate and other cannabinoid isolate products.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE RELEASE
HTC Purenergy corporate developments can be followed on
www.htcextraction.com and is traded under the symbol HTC.
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of HTC. Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified
by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur or be achieved. This press release
contains forward-looking statements pertaining to, among other
things, the assumption that crops will yield viable amounts of hemp
for CBD oil extraction, that tolling agreements will be entered
into and synergies of the technologies will occur.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks, which
could cause actual results to vary and in some instances to differ
materially from those anticipated by HTC and described in the
forward-looking information contained in this press
release.
Although HTC believes that the material factors, expectations
and assumptions expressed in such forward-looking statements are
reasonable based on information available to it on the date such
statements were made, no assurances can be given as to future
results, levels of activity and achievements and such statements
are not guarantees of future performance.
View original
content:http://www.prnewswire.com/news-releases/htc-extraction-systems-announces-tolling-contracts-project-construction-offtake-agreements-and-technology-capabilities-designed-to-optimize-production-and-distribution-of-cbd-and-other-cannabinoids-300871344.html
SOURCE HTC Purenergy Inc.
