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HTC Extraction Systems (TSX.V: HTC) (OTCQB: HTPRF) Wraps Up Productive Year in Cannabinoid Refining Operation

  • HTC Extraction Systems specializes in ethanol and ethanol-based solvent extraction and product reclamation, which it is using in processes designed to build its position in the booming cannabinoid market
  • Cannabidiol (CBD) has proven to be the most readily available and profitable cannabinoid for use in the non-pharmaceutical wellness industry, growing 342 percent in year-over-year sales between August 2018 and August 2019
  • HTC is establishing biomass receipt, refining and retail operations in Canada and the United States (California) to take advantage of is technical experience and the consumer demand for cannabinoid products

HTC Extraction Systems (TSX.V: HTC) (OTCQB: HTPRF) is approaching its end of year operations riding high on a series of strategic decisions designed to establish a modular, economical production chain for obtaining hemp, extracting profitable chemical compounds and distributing those compounds through sales-to-consumer marketplaces.

HTC has established proprietary systems to reduce costs and boost its ecological profile while specializing in ethanol extraction and purification, using biomass to obtain cannabinoids such as cannabidiol (CBD), cannabigerol (CBG) and cannabinol (CBN). HTC’s trademarked Delta CBD Reclaiming System recovers and purifies ethanol and solvents with the end of meeting food-grade requirements for extracted CBD quality, utilizing HTC’s experience in reduced-heat processing to prevent damage to CBD molecules’ chemical attributes.

Likewise, HTC’s trademarked Delta Reclaiming System reclaims ethanol and hydrocarbon-based solvents, and others, for use in hemp biomass cannabinoid extraction processes, natural gas processing and post-combustion carbon dioxide capturing for the best-possible environmental footprint.

HTC’s clean energy approach gives the company a measure of additional gravitas in a booming industry defined by rapidly shifting public perspectives that have driven communities and states to battle long-established federal drug-industry regulations that many people now regard as onerous.

Cannabinoid users are already reporting the benefits of non-psychoactive cannabinoids in dealing with pain, nerve, muscle disorders and other health issues at the same time that natural product alternatives to the prescription drug market were gaining a strong foothold in the consumer wellness marketplace. Natural products industry market researchers at data technology company SPINs reported recently that CBD sales grew 342 percent year-over-year between August 2018 and August 2019, reaching $185.1 million in revenue – well above the $9.1 million level reported two years ago (http://ibn.fm/gnoRQ).

CBD’s ascendance drove an interest in less-available, harder-to-market cannabinoids such as CBG and CBN. CBG exploration began to take off in 2015 but the difficulty in obtaining sufficient quantities for retail products has hindered wide-scale use. CBN has similarly suffered, despite its reputed potential for counteracting some of the negative effects of other cannabinoids, particularly psychoactive cannabinoids. But the U.S. government’s National Center for Complementary and Integrative Health (NCCIH) announced last year that it intends to launch its own research on lesser-known cannabinoids because of their potential health benefits (http://ibn.fm/ULo0t).

HTC has used hemp biomass tolling contracts as an economical model for obtaining plant product and is installing new extraction equipment this month at its recently-completed 19,000-square-foot facility in Saskatchewan and at the 22,000-square-foot facility in California owned by Starling Brands Inc., with whom HTC has established a share and purchase agreement for hemp extraction, refining, formulation and distribution in that state.

HTC intends to use its relationship with Purely Canada Foods™ to market its cannabinoid ingredients under the brands Purely Canada Hemp™, Purely Canada CBD™, Purely Canada CBG™ and Purely Canada Cannabinoids™, building multi-year ingredient supply contracts with its customers.

The company built its revenues by more than 2.5 times in year-over-year financial results reported recently for the third quarter, growing from $1.3 million to $3.3 million (http://ibn.fm/yeNCo).

For more information, visit the company’s website at www.HTCExtraction.com

NOTE TO INVESTORS: The latest news and updates relating to HTC are available in the company’s newsroom at http://ibn.fm/HTC

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