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Be the first with the news that moves the market- AgraFlora (CSE:AGRA) subsidiary, Sustainable Growth Strategic Capital (SGSC), has received approval to start extracting at its CBD facility
- This month, SGSC started a trial extraction of hemp biomass
- If the trial is successful, the company plans to start a second harvest cycle
- AgraFlora (AGRA) is up 50 per cent, and is currently trading at 6 cents per share
AgraFlora (CSE:AGRA) subsidiary, Sustainable Growth Strategic Capital, has received Health Canada approval to start extracting at its CBD facility.
The approval is pursuant to an amendment to the subsidiary’s Standard Processing License.
SGSC, a federally licensed cannabis company in the Greater Toronto Area, already holds Standard Cultivation and Medical Sales licenses.
Whilst awaiting final approval, SGSC has been busy engaging with the Canadian CBD sector. In particular, the company has been working with partner farmers to optimise the harvest to hemp crops. This may in turn maximise the efficiency of the resulting CBD extraction.
This month, SGSC started a trial extraction of hemp biomass, using third-party extraction services. The result will be sold as a combination of CBD Crude Oil, CBD Distillate, and CBD Isolate to Canadian buyers.
If the trial produces favourable results, with high quality and efficiency, SGSC plans to quickly start a second production cycle. The second harvest will yield up to 1,300 kilograms of high-quality hemp biomass, containing up to 8 per cent CBD concentrations.
SGSC’s current facility has the capacity for up to 250,000 kilograms of biomass extraction. The company uses chilled ethanol for the primary extraction, followed by distillation and/or isolation.
SGSC plans to use the trial and ensuing third-party extraction cycles to design and size its own in-house capacity. This will hopefully result in maximising profitability and a return on capital investments.
SGSC is looking forward to improving profits and reducing extraction costs by moving those processes in-house.
AgraFlora (AGRA) is up 50 per cent, and trading at 6 cents per share as of 3:43pm EST.
