Pressure BioSciences Inc (OTCQB:PBIO) kicked off the launch Thursday of its BaroShear K45 system aimed at the rapidly expanding cannabidiol (CBD) market based on the company's patented Ultra Shear Technology platform.
The BaroShear K45 system is based on Ultra Sheer Technology, which applies high-pressure levels much greater than 20,000 pounds per square inch.
The South Easton, Massachusetts, company basically utilizes high pressure to create intense, momentary liquid shearing forces at controlled temperatures that result in affordable and scalable homogenization of liquids, creams and gels.
Investors cheered the news sending shares in Pressure Bio up 18.2% to $3.05.
The technology creates nano-scale emulsion mixtures of otherwise immiscible fluids — like oils and water — that results in stable homogenized products called nanoemulsions.
Given this ability, the BaroShear K45 system is a powerful next generation nano-emulsification system designed to fix a critical problem facing CBD manufacturers: the poor water solubility of CBD oil.
CBD is a non-psychoactive compound extracted from the cannabis plant which offers health benefits ranging from stress and anxiety relief to decreased muscle, joint, cancer and other pain.
Working pressures up to 45,000 psi
This new form of CBD oil created with the help of the BaroShear K45 system disperses instantly and improves the effectiveness of CBD dosing as well as absorption. It makes it easier for the oil to be added to sodas and seltzers, vitamin-infused sports drinks and beer.
"The BaroShear K45 system uses a custom-designed, highly responsive ultra-high pressure generating subsystem, matched to our patented BaroIsolator device and NanoGap valve,” said Dr Nathan Lawrence, senior advisor to Pressure BioSciences. “This allows for the highest effectiveness possible at working pressures up to 45,000 psi. The BaroShear K45 system is ideally suited for processing small amounts (50 millilitres to 2 liter) of high value product, such as CBD oil, into nanoemulsions with high yield."
For most oil-based products, the ability to prepare them as nanoemulsions can improve the product's absorption, medicinal benefits, visual appearance, said the company. Unfortunately, traditional processing methods struggle with this challenge.
"Over the past several months, we have spoken with dozens of CBD companies. A common theme has been their desire to develop new and improved delivery methods for CBD and their concern with how best to make stable nanoemulsion mixtures of CBD oil and water,” said Dr Bradford A Young, chief commercial officer at Pressure BioSciences. “The BaroShear K45 system, can help companies make high quality, CBD-based products using physics (ultra-high pressure) instead of chemistry (lots of strong detergents). We look forward to helping our customers address the large and growing market for CBD infused foods, beverages, cosmetics and topicals."
The total CBD market is expected to hit $89 billion by 2024, with CBD oil-based products being the cornerstone of the non-psychoactive portion of the market, according to market analysis firm Mordor Intelligence.
For CBD products commonly consumed orally, including CBD oils in edibles and beverages absorption is typically below 10%.
Pressure Bio believes that processing with the UST-based BaroShear K45 system will deliver greatly improved absorption results, potentially as high as 90% for CBD and other oil-based supplements.
"The data I have reviewed to date on UST-generated nanoemulsions of CBD oil are very impressive,” said Dr Keith Warriner, professor of Food Science at the University of Guelph (Toronto), and an expert in the cannabis industry.
Shaping up into major revenue earner
The BaroShear K45 system has a list price of $195,000.
"We believe that sales of these systems will become a major revenue-generating part of our business. We will be accepting purchase deposits on pre-sale orders immediately,” said Pressure BioSciences CEO Richard T Schumacher.
Schumacher said that based on feedback, purchase deposits on instruments from the initial build could start being received by mid-July.
“We plan to stop accepting purchase deposits on September 30. However, we will stop earlier if demand exceeds reasonable manufacturing limits," said Schumacher who expects to be flooded with orders.
Schumacher said the company looking forward to working with the early adopters of the technology platform.
“Early adopters will be the first to use the UST platform in the CBD field, thus giving them a significant head-start over companies who choose to wait or use other methods,” said Schumacher. “They will always be the first to get full access to new instruments, technologies, and applications that can positively impact the UST platform. They will also have "most favored nation" pricing for subsequent UST platform systems.”
The CEO said there's much to learn about CBD formulations and their benefits so the company will offer collaboration opportunities to the first three groups who submit purchase deposits.
“This is a very exciting time for the Pressure Bio team, and for all stakeholders,” said Schumacher.
-- Updates with list price, CEO quotes --
Contact Uttara Choudhury at [email protected]