Cultivation Technologies, Inc.
Cultivation Technologies, Inc.’s Extraction Facility in Coachella, CA Quickly Advancing Toward Full Commercialization
Monday, March 26, 2018 3:10 PM
IRVINE, CA / ACCESSWIRE / March 26, 2018 / Cultivation Technologies, Inc. ("CTI" or the "Company") an emerging leader in medical cannabis manufacturing, distribution, technology, and branding provides the following update on the interim medical cannabis extraction facility ("Extraction Facility") and its exclusive line of branded products: Coachella™ Premium.
CTI is quickly advancing towards commercialization and ramping revenue at the Extraction Facility
As announced on January 15, 2018, CTI's wholly owned subsidiary, Coachella Manufacturing LLC, took over direct operations of its Extraction Facility operating at its site in Coachella, California. This Extraction Facility can currently process an estimated 6,000 pounds of biomass per month translating to approximately 3.7 million grams of raw oil per year. The Company has the ability to add an additional extraction machine and fractional distillation and winterization equipment, resulting in the additional capacity to process 3,000 pounds of biomass per month and the ability to service third-party vaporizer, winterization and distillation customers at a scale of approximately 100,000 grams of finished product weekly.
CTI's Coachella™ Premium Brand
CTI's own brand, Coachella™ Premium, recently introduced a line of medical concentrates which are now available for sale to all California licensed dispensaries. CTI is currently expanding its product line to include vaporizer cartridges, which will become available in the coming weeks. Initial market feedback gathered during the product development phase indicates that Coachella™ Premium's vaporizer cartridges offer a unique proposition within the vaporizer market, one of the fastest growing verticals in the cannabis market.
Manufacturing and Distribution Services
Since taking operational control and after obtaining state temporary licenses, the company has acquired key accounts for contracted manufacturing and services. Such services are provided through the Company's wholly-owned subsidiaries: Coachella Manufacturing LLC and Coachella Distributors LLC. Private label services have already begun at the site, providing brands which otherwise had no legal avenue to participate in the licensed environment, a legal solution to maintain their presence in the market.
Implementation of Commercial Sales Team
To commercially advance these opportunities, CTI has hired an experienced sales team consisting of a director of sales, two full-time sales managers, and three independent sales contractors. Chip Coble, the Company's new director of sales, joined the CTI team in the beginning of March and brings with him over 25 years of channel sales and operations management, overseeing teams as big as 100 and managing multi-million-dollar budgets. He will be overseeing the sales of CTI's exclusive line of branded cannabis products: Coachella™ Premium, as well as direct B2B sales under Coachella Manufacturing LLC and Coachella Distributors LLC. Chip added, "Cannabis has directly impacted my life and I feel fortunate to bring that passion to CTI. I am thrilled to be a part of such a dynamic team and to see the successful growth of our branded products within the legal market." CTI's sales organization is strategically set up to serve designated zones throughout California to ensure statewide market penetration.
The state of California is taking steps to curtail the operations of the black market. Regulators have begun sending cease and desist letters to unlicensed operators, including advertising companies which have continued to support unlicensed operators. In addition, an effort to support the businesses which have invested time and capital to reach legal status has begun with the introduction of amendments to Assembly Bill (3157). The amendments propose to reduce the price disparity between legal cannabis business and black-market sources by suspending the state's cultivation tax and reducing the state's excise tax until 2021. These efforts highlight the state's support for compliant business, strengthening the value proposition and opportunity in front of compliant operators such as CTI.
With the passing of Proposition 64 in November 2016 and legalization of adult use taking effect January 1, 2018, the state of California is now the world's largest regulated cannabis market and estimated to be worth $6.45 billion by 2020.
CTI Announces a New Opportunity for Verified-Accredited Investors
The Board of Directors of CTI recently authorized a new Private Placement Memorandum pursuant to Rule 506(c) of Regulation D offering common stock of the Company from verified accredited investors, with a minimum investment of $50,000 (which may be reduced to $25,000 at the discretion of the Company). Accredited investors should visit www.cultivationtech.com/investors for more information.
This update is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities of the "Company" or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Private Placement Memorandum and in accordance with the terms of all applicable securities and other laws. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this message does not constitute investment advice or counsel or solicitation for investment in any security. This message does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of or be relied on in any connection with, any contract or commitment whatsoever. The Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in this message, (ii) any error, omission or inaccuracy in any such information, or (iii) any action resulting therefrom.
About Cultivation Technologies
Cultivation Technologies, Inc. provides infrastructure, technology, and branding to the licensed medical cannabis industry. The first major project for the company is in Coachella, California, which will span 6-acres featuring cultivation centers, extraction and manufacturing facilities, a testing lab, a distribution hub, and a centralized processing center. For more information, visit www.CultivationTech.com.
This press release constitutes forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, capitalizing the Coachella project, technical advances in the industry, as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made. This press release and the information contained herein is not an offer to buy or sell securities and does not contain investment advice.
SOURCE: Cultivation Technologies, Inc.