News Release

extractX Ltd. Announces Spin-off of Ownership in ihiveLIVE Inc.

extractX Ltd. Announces Spin-off of Ownership in ihiveLIVE Inc. and Settlement of Certain Liabilities

Niagara, ON September 30, 2021

extractX Ltd. (formerly Tri-Media Integrated Marketing Technologies Inc.) (the “Company”), today announced the spin-off of its ownership in ihiveLIVE Inc. and the settlement of certain liabilities.

As contemplated in the Amalgamation Agreement (the “Agreement”) to be signed by extractX Incorporated, 12491613 Canada Inc. and the Company, on October 1, 2021 the Company will spin off its ownership and investment in ihiveLIVE Inc. (“ihl”) to its existing shareholders (as of today there are 937,533 shares outstanding post-Consolidation) who in turn will exchange their individual interest in the note receivable owing for common shares of ihl. The Company created a security entitling its holders to these assets and is treating this transaction as a dividend of that Company security. An independent valuation of ihl determined the value of the Company interest in ihl (the 1,099,131 ihl common shares and the $1,245,971 note receivable) to be $4,361,187. Individual information will be provided to shareholders.

Additionally, as contemplated in the Agreement, on October 1, 2021 the Company is settling certain liabilities by the issue of common shares (post-Consolidation and after the payment of the dividend of the ihiveLIVE Inc. interest to the Company’s shareholders). The Company will issue today 399,271 common shares to settle $37,500 of accounts payable, $60,000 of accrued Board of Directors fees, $276,008 of an amount owing to an individual shareholder and $25,763 of an amount owing to a corporate shareholder.

No stock exchanges have reviewed or accepted responsibility for the adequacy or accuracy of the content of this press release.

Certain statements contained herein constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business and financing, business trends and future operating revenues and expenses. Statements regarding the aforementioned are based on several assumptions and are not to be considered fact. Although extractX Ltd. believes that the statements are reasonable, it can give no assurances that such expectation will prove to be correct. Investors are cautioned that any forward looking statements made by extractX Ltd. contain no guarantee of future performance and that actual results may differ materially from those set forth in the forward-looking statements. For additional information see the reports filed by the company in its securities filings with applicable securities regulators (currently available at www.sedar.com).

Unless otherwise required by applicable securities laws, extractX Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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The Various Valuable Uses of Hemp

The Various Valuable Uses of Hemp

As hemp has rapidly been re-introduced to consumer markets across a variety of industries throughout the world, humans have been reminded of the many benefits of this remarkable plant. Hemp serves as a more usable, sustainable alternative to common practices found in a variety of industries, yet a new use for the plant is proving incredibly valuable to consumers and entrepreneurs.

The Many Uses of Hemp

Hemp can be used to make paper, packaging products, resins that can be extruded to produce biodegradable plastic-like materials, textiles for apparel, and building materials that can be used instead of cinder block and concrete. Worn-out hemp products like sails, ropes, clothes, sheets, diapers, curtains, and rags can be recycled into hemp paper. Within the categories of foods and dietary supplements, hemp seeds can be eaten or used to create protein powder and hemp seed oil, or used as an ingredient to make plant-based products like burgers, pasta, and milk.

While these uses show the versatility, usability, and sustainability of hemp cultivation, the extraction of CBD oil from hemp plants is gaining more popularity amongst consumers, and driving demand and market price sky-high.

Demand for Hemp

Hemp biomass is generally comprised of non-flower parts like seeds, stalk, and leaves and has an average price of around $14 USD/lb. As seen in the chart below, there are many uses for unspent biomass based on the part of the plant used.

Potential uses of hemp
Hemp bag for extraction

Hemp is being used as a more sustainable alternative to common practices in a variety of industries.

While this chart showcases the many remarkable uses for hemp, extracting CBD oil is, by far, the most profitable use for hemp biomass. Current market estimates place the value of CBD oil ranging from $700 to $2500 per kilogram, depending on purity and whether specific compounds have been removed or isolated.

The Benefits and Uses of CBD Oil

Oil extracted from hemp biomass contains a variety of compounds that can be used in medicinal, health and wellness, and recreational products. Cannabidiol (CBD) is one of the most popular cannabinoids currently being used by consumers, with products claiming anti-inflammatory, anti-anxiety, and seizure suppressant properties. While researchers and government organizations are still building empirical data to support the use of CBD for a host of human ailments, tons of anecdotal evidence exists to support the benefits of using CBD oil.

Demand for CBD Oil

As consumer testimonials promoting the benefits of CBD oil spread through the masses, commercial appeal for CBD products is skyrocketing. Many people have begun using nutraceuticals infused with CBD to replace pharmaceuticals, and recreational users are experimenting more and more with these new products. Both of these realities are leading to a continued rise in demand for high-quality CBD distillate.

Hemp vs Cannabis

While hemp and marijuana are the same species, the marijuana variant has been specifically bred to have a high tetrahydrocannabinol (THC) content. THC is the ingredient that gets you “high”.

Hemp contains very little THC, allowing us to capitalize on the many other benefits of the plant without the risk of causing inebriation. It has a wide array of useful applications, from building materials to paper to clothing. Perhaps the most interesting use for this plant, however, is the production and processing of hemp to extract cannabidiol (CBD).

The global cannabidiol [CBD] market size is expected to reach USD $13.4 billion by 2028. The market is expected to expand at a CAGR [Compound Annual Growth Rate] of 21.2% from 2021 to 2028.

PR Newswire

The birth of this industry has created an exciting economic boom in a brand-new market, one that entrepreneurs and engineers alike are flooding to. While hemp has been proving its usefulness to humans for many centuries, advancements in the cultivating, extracting, and infused product industries have created an exciting opportunity for modern companies operating in these spaces.

Creating High-Quality CBD Distillate

If extracting CBD oil is the most profitable use for hemp biomass, there’s never been a bigger need for innovation in extraction processes and technologies. With a mobile extraction partner like extractX, cultivators and product formulators can position themselves with a strategic partner that will help them continue to grow in this rapidly expanding market.

extractX mobile extraction labs are fully certifiable to produce nutraceuticals, pharmaceuticals, and recreational products, and arrive at your facility ready to operate (after a quick installation) within 4 months. If you’re in the business of working with hemp or CBD consumer products, it’s never been a better time to explore a CBD distillate extraction partner.

Installing mobile lab in partner facility

Mobile extraction labs help hemp cultivators and CBD product formulators outsource the extraction process to a trusted partner, keeping them laser-focused on what they do best.

If you’re a hemp or cannabis cultivator, processor, or formulator creating CBD or THC products, and want to penetrate markets faster with no lab CapEx, then a mobile extraction lab may be right for you. If you are processing more than 75,000 lbs of biomass per year and are interested in a turnkey extraction lab for $0 lab CapEx and 4 months to installation, we want to talk to you today! Please contact us to learn about becoming an extractX partner.

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    Obstacles Facing the United States CBD Distillate Industry

    Obstacles Facing the United States CBD Distillate Industry

    The Decriminalization of Hemp

    As the 2018 Farm Bill was signed into law in the United States, it explicitly preserved the FDA’s authority over hemp products. Hemp (and the compounds derived from it) now falls under the same requirements and regulations as any other product within the categories of foods, dietary supplements, human and veterinary drugs, and cosmetics.

    While some governments are behind the U.S. in legalizing the use of CBD products derived from hemp, it’s likely that the reality painted by the 2018 Farm Bill will be echoed across jurisdictions throughout the world. It’s never been more important for the cannabis cultivator, CBD product producer, and average consumer to understand CBD distillate products and the obstacles facing the industry.

    extractX Services Image

    Obstacles Facing the CBD Distillate Industry

    One of the biggest obstacles facing the mainstream adoption of these new remedies is the lack of research and regulations in the industry. As legalization of CBD products spurns the emergence of new players, some companies have marketed various CBD products for the treatment of diseases without first obtaining proper drug approvals. This has created a serious roadblock in bringing these products to the mainstream and inspiring trust amongst users.

    Laboratory analysis of some products revealed they did not contain the amount of CBD that was claimed on a product’s label, and/or the products contained other substances that were not on the product’s label, such as other cannabinoids like THC.

    US Food & Drug Administration

    One of the biggest challenges facing the CBD industry is simply how new it is. The FDA has already faced challenges as CBD products have entered the food, dietary supplement, human and veterinary drug, and cosmetic industries with organizations making unverified claims that their products will cure or treat the symptoms of a variety of health conditions.

    As demand steadily increases, there’s a shortage of experience on the supply side, with many new-to-industry people joining companies in a new market. Government regulation and research must be coupled with cooperation and collaboration with hemp cultivators, CBD product brands, biotechnology companies, and consumers to ensure products hitting the shelves are safe and beneficial for human use. Innovation is required, not only in our technology, but also in our ability to work together.

    extraction as a service

    Governments, cultivators, and producers must work in partnership with extractors as the CBD distillate industry evolves.

    How to Build a CBD or THC Extraction Lab

    As cultivators and brands do their part to refine growing practices and bring exciting new products to consumers, the extractX team is excited to be positioned as a strategic partner in the extraction process. Our business model helps you overcome many of the obstacles facing executives in the CBD product industry.

    If you’re a hemp or cannabis cultivator, processor, or formulator creating CBD products in the United States, and want to partner with a team of experts experienced in building extraction labs to meet local AHJ requirements, we want to talk to you today! Please contact us to learn about becoming an extractX partner.

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      Understanding CBD Distillate and its Uses

      Understanding CBD Distillate and its Uses

      Where does CBD distillate come from?

      CBD distillate is extracted from hemp plants. Hemp biomass (cultivated hemp plants) is ground down and run through an extraction process to pull oil from the plant that contains desirable compounds. This distilled oil can then be used in a variety of CBD products, or it can be further refined to isolate compounds to treat specific ailments and conditions.

      The extraction process is highly technical and requires lots of time and funding to source the right equipment, construct the lab, get certified from local AHJs (Authority Having Jurisdictions), hire and train staff, and develop standard operating procedures (SOPs).

      Not surprisingly, higher-quality CBD distillate creates higher-quality products. In recent years, companies in the extraction industry have refined new technologies, processes, and business models to ensure that the quality of distillate found across the industry continues to improve. The extraction process and technology in the lab are both equally as important as the quality of the hemp biomass when it comes to creating high-quality CBD distillate.

      CBD Distillate Uses

      CBD distillate is extracted from hemp biomass.

      Did You Know?

      A recent study found that distillation improves cannabinoid profile. Distilled hemp biomass was found to have over 3 times more CBD compared to non distilled samples.

      Source: nature.com

      Demand for CBD Products

      Since the FDA removed hemp from the definition of marijuana as a Schedule I substance in 2018, new drugs and supplements are flooding the market to help treat people suffering from a variety of illnesses and ailments.

      FDA has seen CBD appear in a wide variety of products including foods, dietary supplements, veterinary products, and cosmetics. As this new market emerges, we have seen substantial interest from industry, consumers, and Congress.

      US Food & Drug Administration

      Increased popularity and awareness of the health benefits of CBD oil is changing the way people look at this once taboo plant, and an exciting new industry has begun to bloom. “The global cannabidiol [CBD] market size is expected to reach USD $13.4 billion by 2028. The market is expected to expand at a CAGR [Compound Annual Growth Rate] of 21.2% from 2021 to 2028.” This industry growth is fueled in part by innovation in CBD products and distillate extraction.

      Read more about how we’re helping our partners capitalize on this growing market in our discussion paper: How Aviette BioProcessing Leverages extractX Technology to Take Advantage of the Booming US CBD Market.

      Types of CBD Distillate Products

      There are thousands of specialized products that have been made using CBD distillate, most falling into one of the following categories:

      • Beverages: CBD beverages of all types and flavors are emerging, and are believed to be one of fastest growing market segments of CBD distillate products
      • Edibles: edibles come in many different forms, including gummies, chocolates, baked goods, and more
      • Pills, Capsules, Oils, & Tinctures: CBD pills, capsules, oils, and tinctures make it easy to take precise amounts of CBD to meet the users’ needs
      • Vapes: CBD vapes can be a preferred way to consume CBD for relaxation, and a tool to quit smoking or vaping nicotine
      • Topicals: CBD Topicals are typically used to help reduce pain and inflammation, and for management of skin disorders
      extractX Partner's CBD Product

      CBD distillate can be used to create a variety of consumer products, like CBD oils and creams. (Image courtesy of Aviette BioProcessing)

      For companies who are experts in growing and cultivating the highest-quality hemp biomass, it takes a lot of time and energy to research and build their own extraction lab – it’s like starting a whole other business! That’s why we started extractX.

      Turnkey Mobile Extraction Labs

      Introducing the extractX mobile extraction lab solution – a turkney extraction lab delivered within 4 months, requiring no lab CapEx. If you are processing more than 75,000 lbs of biomass per year and are interested in a turnkey extraction lab, we want to talk to you today! Please contact us to explore becoming an extractX partner.

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        Uses of THC & CBD Distillates

        Uses and Health Benefits of THC & CBD Distillates

        What is THC or CBD distillate?

        As pharmaceuticals, nutraceuticals, and recreational products flood global markets, it’s never been more important to understand what THC and CBD distillates are, and how they are used. THC and CBD distillates are oils extracted from cannabis or hemp plants that contain compounds that have shown remarkable health benefits to consumers. As these consumer-friendly products are becoming legal and federally regulated, the demand for THC and CBD distillate has never been higher.

        How is THC distillate used?

        THC distillate can be used (sometimes only after further processing) mainly in vaporizers, edibles, or topicals. These types of products serve as an alternative for people who want to experience the THC high without having to smoke cannabis. While the health effects of vaping cannabis products are sometimes questioned, there’s no doubt that the use of edibles is a great alternative for those who want to dabble with the high without smoking. Topicals also provide the opportunity for people to absorb high concentrations of THC through their skin.

        How is CBD distillate used?

        CBD distillate is used similarly to THC distillate, but the benefits of CBD distillates may be more far-reaching. CBD distillate can be used in edibles, vapes, pharmaceuticals, topicals, and cosmetics to treat all kinds of ailments and health problems.

        CBD has shown promise for treating pain (ex. chronic pain from an old injury), anxiety and depression, acne, and even cancer-related symptoms (learn more here). With CBD products becoming more mainstream, the data is stacking up in favor of the benefits of CBD distillate.

        Extracting THC and CBD distillate

        Extracting THC or CBD distillate from cannabis or hemp biomass is an extremely technical process. Building an extraction lab that not only meets your product quality standards, but also the safety standards of your local Authority Having Jurisdiction (AHJ), takes a lot of time and capital expenditure. extractX mobile labs help partners overcome these obstacles by assuming the responsibility for the technology and equipment within the lab.

        Instead of partners having to focus on developing the technology and expertise to extract their own high-quality distillate, they can now outsource this area of production to a trusted partner and remain focused on cultivating the best cannabis or hemp or formulating and producing the best consumer products.

        Processing Biomass in eXi Mobile Extraction Lab

        Pharma-grade THC and CBD distillate

        Our experience in creating mobile extraction solutions to the highest quality standards means our labs are delivered to your facility ready to be certified by your local Authority Having Jurisdiction (AHJ). Authorities around the world are constantly impressed by the quality of the distillate produced in extractX mobile labs.

        Take a look inside one of our mobile extraction labs:

        Highest quality distillate with extractX

        If you’re interested in the benefits of having your own extraction lab to fuel your company’s rapid growth but want to avoid the massive CapEx and project length to build your own lab, then a mobile extraction lab partner may be right for you. Mobile labs are pharma-grade certifiable, arrive ready to operate, and are fully-staffed and managed by extractX. Hear from one of our partners about how they’re leveraging extractX mobile labs to capitalize on the booming US CBD market here.

        If you are processing more than 75,000 lbs of biomass per year and are interested in a turnkey extraction lab for $0 lab CapEx and 4 months to installation, we want to talk to you today! Please contact us to learn about becoming an extractX partner.

        If you’re a cultivator or producer growing towards 75,000 lbs of biomass per year, sign up for our newsletter to keep in touch. Follow us on Facebook and LinkedIn to keep educating yourself about advancements in the extraction industry.

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        5 benefits of working with a mobile extraction lab partner

        5 Benefits of Working with a Mobile Extraction Lab Partner

        Demand for CBD and THC distillate products continues to rise as countries around the world legalize hemp and cannabis for medical and recreational use. This booming industry is attracting brilliant entrepreneurs and engineers looking to capitalize on this unique opportunity. Edibles, topicals, and vapes all offer alternatives to smoking for people who want to experience the benefits of the compounds found in hemp and cannabis, which is driving the need for high quality distillate, and better extraction solutions.

        Challenges in building an extraction lab

        Cannabis and hemp cultivators and THC and CBD product creators alike know how important the extraction process is when it comes to creating high-quality products for consumers. But, building an extraction lab is no easy task.

        What extraction process is right for you?

        First, you must identify what extraction process is right for you. Solvents such as ethanol, carbon dioxide, and butane have all been used to extract CBD or THC distillate from hemp or cannabis biomass, but to understand what process is right for you requires lots of technical expertise and planning. (Here’s why we chose an ethanol extraction process).

        How long does it take to build an extraction lab?

        Build-your-own labs can take up to 2 years from project launch to completion. We’ve seen companies purchase the wrong equipment, struggle to get certifications and create their SOPs, and spend time searching for experts to help them complete the project.

        What does it cost to build an extraction lab?

        Project costs on build-your-own extraction labs can reach as high as $3,275,000 for a 1500 sq.ft lab, and as high as $7.5 million for a 2000 sq.ft lab. These costs are associated with building a clean room that meets C1D1/C1D2 standards, and sourcing and installing the right equipment for your chosen extraction process.

        Clean room construction

        How do you manage the staff and operations of your extraction lab?

        Completing the lab build is just one hurdle. You’ll then need to source the right staff, train them on your SOPs, and manage them on an ongoing basis.

        Benefits of a mobile extraction lab

        Mobile extraction lab partners like extractX present a new option for companies who want to have an extraction lab at their facility, but who want to avoid the challenges above. Owned and operated by a partner company, these self-contained suites are customized offsite and delivered ready to be placed inside of or adjacent to an existing facility building.

        Mobile extraction labs produce the highest quality distillate from cannabis or hemp biomass

        In the extractX model, since we’re managing and pulling data from labs around the world, we’re able to learn and optimize our labs much faster than companies building their own labs. Our focus is on constructing the best extraction labs on the market and operating them to produce the highest quality distillate, meaning you don’t have to worry about those aspects of your business.

        extractX Mobile Lab

        Production is scalable, flexible, and efficient

        These mobile units can be used as a primary extraction lab, or to supplement existing lab facilities. Because they are self-contained, it’s relatively easy to scale production up or down as dictated by business needs, with managed staff working 1-3 shifts per day, 6 days a week. New labs can be added to support further remediation or separation processes, or to pursue new markets.

        Mobile labs are pharma-grade certifiable

        Self-contained labs are equipped with operational permits to meet local Authority Having Jurisdiction (AHJ) requirements, have fully documented Standard Operating Procedures (SOPs) to meet regulatory compliance, and fit easily into existing operations. Recent changes in the regulatory environment allow these labs to operate under the producer’s existing license. There is no need to apply – and wait for – a separate license for these units.

        Labs are future-proofed

        The cannabis and hemp industry is a rapidly evolving landscape where you have to stay ahead of technological advancements in order to remain competitive. Engaging with an extraction-as-a-service partner means no commitment to a specific piece of equipment. Technology maintenance and process upgrades remain the responsibility of the mobile lab company.

        Mobile extraction labs are fully staffed and managed

        Finding people with the right experience and skills in this competitive talent market is a challenge. Extraction-as-a-service removes this hurdle, since the partner company hires, trains, and oversees the technicians needed for ongoing lab operations. Instead of spending time sourcing and developing talent, you can remain focused on your product.

        Highlights of the extraction-as-a-service model

        • Lab is owned and operated by the partner company
        • A team of experienced scientists and engineers develops the process and secures equipment that functions seamlessly to deliver on contractual requirements
        • Labs are built to comply with local regulatory standards and come with documented SOPs
        • Labs are delivered to a facility ready to start processing within a short time of arrival
        • Trained staff manage ongoing operations – 1 to 3 shifts daily, 6 days a week
        • Technology upgrades are the extraction partner’s responsibility

        Hear from one of our partners about how they’re leveraging extractX mobile labs to capitalize on the booming US CBD market here.

        Is a mobile extraction lab right for you?

        If you’re a hemp or cannabis cultivator, processor, or formulator creating CBD or THC products, and want to penetrate markets faster with no lab CapEx, then a mobile extraction lab may be right for you. If you are processing more than 75,000 lbs of biomass per year and are interested in a turnkey extraction lab for $0 lab CapEx and 4 months to installation, we want to talk to you today! Please contact us to learn about becoming an extractX partner.

        To learn more about the benefits of an extractX lab, and some of the challenges you’ll face building your own lab, download our discussion paper: Proprietary construction or a self-contained extraction lab: what’s right for your company?

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          Partner

          extractX Labs Create Global Opportunities for Partners

          The Power of Partnership - extractX Labs Create Opportunities for Partners

          Distillate produced in Pharma-Grade extractX turnkey extraction labs creates global opportunities for our partners. Focus on your highest ROI activities, such as cultivation, formulation and brand building and let extractX bring expertise and automation to your distillate production.

          Our extraction-as-a-service solution was placed in Aviette’s facility to provide:

          • Highest Quality Distillate
          • Minimal Lab CapEx
          • Scalability

          Read on to learn how our partner, Mark Loik, and his team at Aviette BioProcessing leveraged their extractX mobile lab to create the highest-quality distillate and build their Kentucky Honey brand while expanding to provide Aviette BioProcessing white label solutions.

          Hear from Our Partner

          The team at Aviette started investigating extraction options while attending industry conferences. They looked at different equipment but found that building an extraction lab is no easy task. It’s an intensive process that involves the services of specialized architects and engineers, a significant CapEx outlay, and patience: design and permitting through to project completion can take 12-24 months. extractX mobile labs were a much better solution for Aviette’s business and their proprietary brand, Kentucky Honey.

          Having the extractX team manage the entire extraction process means that I can spend my time on developing the market for Kentucky Honey,” says Mark. “Sales, and distribution relationships are critical to our success, and knowing that the engineering side is in competent hands allows me to focus on this key aspect of the business.

          – Mark Loik

          Read the complete case study highlighting our relationship with Aviette BioProcessing and learn more about how our partners are leveraging extractX mobile labs to fuel their rapid growth.

          Click to download your guide now.

          Aviette Discussion Paper - Cover page
          Aviette BioProcessing
          Kentucky Honey

          For more information, please contact us.

          Blog

          Ethanol vs. Supercritical CO2

          Supercritical CO2 vs Ethanol Extraction for CBD Distillation

          Selecting the Right Process and Equipment for Your Extraction Lab

          Current thinking has most licensed producers (LPs) evaluating ethanol and supercritical CO2 extraction processes as the best options for their extraction labs. Each has its advantages and obstacles, and some LPs choose to employ both methods. Below is an at-a-glance summary of the pros and cons of each, and why we’ve chosen to use ethanol for our mobile extraction labs.

          Pros of ethanol extraction

          • The process is fast, making it a good choice for high volume harvests  
          • You’re able to extract pure CBD and THC well, which is excellent for edibles and topicals  
          • Ethanol extraction is more environmentally friendly than alternative extraction methods, as ethanol can be recovered and reused (read more about how we’re Bringing Clean Technology to the Extraction Industry)

           

          Pros of ethanol extraction
          CBD distillate produced by extractX mobile labs is some of the highest quality distillate in the world.

          Cons of ethanol extraction

          • Most authority having jurisdictions (AHJs) require a fully certified C1D1 or C1D2 hazardous material processing area 
          • Engineering and build-out costs for an ethanol extraction lab can run from $750,000-$1.5 million 
          • Design, engineering, and approval processes can take 12-18 months

           

          Pros of supercritical CO2 extraction

          • While the process is more complicated, you’re able to extract a wider range of cannabinoids 
          • The CO2 extraction process allows you to pull terpenes from raw material, which is preferred for vape pen products  
          • CO2 is non-toxic and non-flammable

          Cons of supercritical CO2 extraction

          • It takes 6-10 CO2 extractors to deliver the same output as a single ethanol extractor 
          • Used CO2 gas is released into the atmosphere, adding to greenhouse gas (GHG) emissions 
          • Supercritical CO2 extraction requires winterization, which drives equipment and operating costs up

          Ethanol extraction fuels clean-tech

          Our ethanol-based extraction labs help reduce greenhouse gas emissions compared to other processes commonly used in the industry. Ethanol can be recovered and re-used between batches, making this method considerably more environmentally conscious than supercritical CO2 or butane extraction methods.

          Did You Know? 

          As of July 7th, 2021, extractX has been highlighted for funding of up to $1.48 million from the Government of Canada’s Agricultural Clean Technology (ACT) Program. The ACT Program supports technologies that cut greenhouse gas (GHG) emissions and improve energy efficiency, helping Canada meet its climate change goals. Read the full news release. 

          extractX Mobile Labs

          For our turnkey mobile extraction labs, ethanol extraction was the clear process of choice. Delivering superior results in efficiency, scalability, and product quality, our turnkey mobile extraction labs arrive fully staffed and ready to start processing within a short time of arrival. Labs are built to comply with local regulatory standardscome with documented SOPs, and trained staff manage ongoing operations, processing up to 189lbs. of biomass each day.

          Have a question, comment, or topic that you’d like to see covered in one of our blog posts? Engage in the comments section or reach out directly and our team of experts will get back to you as soon as possible! 

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          Bringing Clean Technology to the Extraction Industry

          The Clean Technology Ethanol Extraction for THC & CBD Distillates

          The Benefits of Using Ethanol for THC & CBD Distillate Extraction

          While the demand for THC and CBD distillate products for recreational and medical use keeps growing, major producers of hemp, cannabis, and distillate products need to be conscious of the environmental impacts of creating their products. By taking advantage of cutting-edge technologies, companies can position themselves to not only be environmentally focused, but to also capitalize on opportunities to cut costs while creating the highest quality distillate.

          Why Use Ethanol for Extraction?

          Ethanol and supercritical CO2 extraction processes are the current leading methods for extracting THC and CBD distillate from cannabis and hemp biomass. It takes 6-10 CO2 extractors to deliver the same output as one ethanol extractor, which results in lower operating costs and a smaller footprint for the ethanol extraction lab. Ethanol extraction labs also offer flexibility and scalability in production that isn’t matched by alternative methods.

          As the demand for CBD and THC distillate products keeps increasing, the supercritical CO2 extraction method is becoming less appealing to producers. The benefits of smaller lab sizes, lower operating costs, and better scalability and flexibility make ethanol extraction labs the clear choice, especially for mid-sized producers who would rather not suffer the headache of trying to build their own large-scale extraction facility. (Read more about the pros and cons of building your own extraction lab, and some alternatives).

          Why Use Ethanol for Extraction

          Cost Savings of Ethanol Extraction

          Ethanol extraction is optimal because the ethanol can be recovered and reused, reducing the financial input required to perform the extraction process. In comparison, CO2 extractors exhaust used gasses into the atmosphere, meaning that new solvent is required for each batch. While CO2 capturing and recycling has been explored as an option for mitigating cost and environmental impact, the gas becomes saturated after multiple runs, and there is always a risk of forward contamination. These obstacles, combined with the larger footprint and staffing requirements of CO2 extraction labs, are why ethanol is becoming the method of choice for producers of CBD and THC distillate products.

          Environmental Impacts of Ethanol Extraction

          While CBD and THC distillate products have been proven incredibly valuable for treating all kinds of ailments and illnesses, increased demand for these products has put pressures on producers to find better ways of extracting THC and CBD oils from cannabis and hemp biomass. It’s crucial for us to focus on the environmental impacts of the industry as production continues to increase. Thankfully, ethanol extraction methods greatly reduce greenhouse gas (GHG) emissions by using a solvent recovery method.

          Our commitment at extractX to creating mobile THC and CBD extraction labs that support a sustainable extraction process is what drew the attention of the Government of Canada’s Agricultural Clean Technology (ACT) Program. Their funding and support have already been instrumental in pursuing our vision of bringing clean technology to the extraction industry. (Read more about our partnership with the Government of Canada).

          extractX Mobile Labs

          Mobile Lab Solution

          If you want to save time, money, and headaches while building an ethanol extraction lab, reach out to extractX today to learn about our full range of mobile lab solutions. Labs process up to 500,000 pounds of biomass per lab, per year, and support processes from distillation to remediation and separation.

          Have a question, comment, or topic that you’d like to see covered in one of our blog posts? Engage in the comments section or reach out directly and our team of experts will get back to you as soon as possible!

          Blog

          Should you build your own extraction lab?

          Should you build your own extraction lab?

          With demand for THC and CBD distillate products skyrocketing around the world, it’s never been a better time to be a cannabis cultivator or producer of edibles, topicals, or beverages.

          Long term forecasts predict that US sales will reach $37 billion by the end of 2024.

          MJBizDaily, June 30, 2020

          As cannabis cultivators continue to refine their growing techniques to produce better biomass, and THC and CBD product companies continue to push their brands forward, it seems like the process of extracting distillate from biomass is one of the biggest hurdles facing those trying to capitalize on this rapidly expanding market.

          How to Build a CBD or THC Extraction Lab

          Since CBD and THC extraction is a complex process resulting in a product that will be ingested or used topically by humans, governments have implemented a ton of regulatory requirements you’ll have to meet to produce your own CBD or THC distillate.

          As jurisdictions legalize hemp and cannabis for medical and recreational use, they’re implementing strong licensing, quality-control, and compliance standards for cultivators and producers.

          To build an extraction lab, you’ll need to obtain professional engineering reports, permits for fire and electrical, and local processing licenses. You’ll need to hire a GMP consultant and develop standard operational procedures (SOPs) that pass a third-party review. You’ll have to source the right equipment, install, calibrate, and test it, and hire and train scientists and lab staff. Sadly, we’ve seen companies venture quite far down this road before realizing that they lack the necessary resources or technical expertise to complete construction of their own extraction lab. Many have indicated that they would have rather brought in a knowledgeable partner so they could remain focused on what they do best – building their brand.

          Lab technician working inside the lab

          Challenges in Building an Extraction Lab

          If you are going to build your own extraction lab, you’re going to face a lot of challenges along the way. Here are just a few: 

          • The build can take 12-24 months to complete
          • Start-up costs for a typical 2,000 sq. ft. lab can run as high as $7.5M
          • The time it takes to conduct technical research into which process and equipment
          • Developing and refining SOPs requires expert consultants which can be costly
          • You’ll have to hire and train staff to operate the lab
          • Extraction equipment and technology is rapidly evolving, meaning your lab could already be outdated by the time construction is completed

          Alternative Options to Building Your Own Extraction Lab

          One option for those who don’t want to build their own extraction lab is toll-processingthe practice of outsourcing your extraction to a large-scale, 3rd party facility that performs extraction services for a fee. While this option solves problems for those that don’t want to build their own lab, it also brings obstacles. First there’s the timing, costs, and concerns related to transporting your biomass to the toll-processor.

          Another major obstacle is the fact that you’re at the mercy of the toll-processing company’s pace.

          Thankfully, a new option has recently entered the market: a turnkey mobile extraction lab partner offering an extraction-as-a-service model. These labs arrive at your location within a few months of the contract being signed and are ready to start producing once the quick installation process is complete. Labs will comply with all local regulatory requirements and come fully staffed with documented SOPs. Since labs are owned and operated by the partner company, you’re not responsible for maintenance or upgrades to the equipment. Finally, they’re a more environmentally friendly alternative to most other extraction methods and require no extraction lab CAPEX.

          eXi mobile lab moved inside a facility

          View our webinar with MJBizDaily, How to tackle extraction and stay competitive, for a more in-depth examination of your options when it comes to building a THC or CBD extraction lab.

          You can also download our discussion paper, Proprietary construction or a self-contained extraction lab: what’s right for your company? to learn more about the pros and cons of working with an extraction-as-a-service partner.

          extractX Mobile Labs

          If you want to save time, money, and headaches while building an ethanol extraction lab, reach out to extractX today to learn about our full range of mobile lab solutions. Our mission is to build the best mobile THC and CBD extraction labs in the world, keeping you hyper-focused on cultivating or procuring the best biomass, and/or developing and marketing the best CBD and THC distillate products. extractX labs process up to 500,000 pounds of biomass per lab, per year.

          Have a question, comment, or topic that you’d like to see covered in one of our blog posts? Engage in the comments section or reach out directly and our team of experts will get back to you as soon as possible! 

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