US-focused 1933 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) updated Wednesday on progress developing its hemp customized processing lab in Las Vegas, which will reduce costs and place the company as market leader in a fast-growing cannabis industry sector.
The system has been designed to extract CBD oil with an average efficiency rate of 2.3 times greater than the current industry standard, cutting costs by at least 50%, the firm said in a statement.
The facility lies next to 1933's current cultivation facility in Las Vegas and the 12,160 sq ft existing building has received the necessary approvals for new zoning and permitting for hazardous materials.
It also has an Industrial Hemp Handler Certificate from Nevada state. Permitting has been completed for fire and city inspections as well as H-3 hazard zoning.
1933 said the new facility will be capable of producing isolated cannabinoids such as CBD, CBG, CBC and CBN, as well as full spectrum and broad spectrum oils without THC, at full scale at significantly lower cost than other comparable hemp extraction facilities, the company said.
The facility's monthly processing capacity is estimated at around 68,000 kg, or 150,000 pounds of hemp biomass to produce 5,000 kg of full spectrum oils or 4,500 kg of CBD isolate.
"We have taken the necessary time to plan, prepare and commit the necessary capital and resources to execute this project which we believe will bring higher returns in the future, noted Chris Rebentisch, the firm's chief executive.
"The lab represents a strategic investment to produce our own raw materials and control the quality of the extracts needed to manufacture our Canna Hemp wellness line of CBD products."
Portfolio of brands
The company's portfolio of brands already includes AMA flower and AMA concentrates as well as CBD-infused Canna Hemp, Canna Hemp X, and Canna Fused products.
"The lab will also enable us to control our production costs and better position our price points in any market conditions. We are one of a few facilities in Nevada that will be processing hemp at this scale and the end product will be able to be sold across the United States," added Rebentisch.
On the second phase of construction, the firm expects that the required peer review will take four weeks to complete and electrical and mechanical systems are being prepared in order to ready the building to receive the new equipment.
"Tenant improvements of the existing building and all phases of construction will require approval by Clark County. The project will take anywhere from 4 to 8 months to complete, based on the response times and approvals by the city and county," it added.
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