Industrial Scale Extraction - Canadian Investment Opportunity

Hey Lincoln, is this from China? Vendor?

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Here’s something - it’s a bit of a rant but w/e - I wrote up in response to a question about licencing, the market in Canada, etc


They’re not technically limiting licenses, but it takes minimum 6 months and a few million dollars to get one right now. You have to have your building ready and security installed and complete before you can even submit your license application. Our security cost us about $250k, though we did it super cheap - some quotes were over $750k. We’ve got 34 cameras covering our facility inside and out last time I checked.

Canada is one of the most heavily regulated jurisdictions generally, and is absolutely the most heavily regulated and controlled for legal cannabis production.

There’s no distinction between hemp and cannabis on the processing/extraction side of things here.

The way our regs are set up, milling is considered “processing” so hemp cultivators can’t even legally mill their biomass.

If you want to grow hemp, a Hemp License is easy to get, but it only allows you to grow and dry it. If you want to extract CBD or even mill it, it requires the same license as extracting/producing THC.

And it’s harder to get a cannabis license than it is to get a license to produce actual scheduled narcotics. Health Canada hates that the courts basically forced cannabis legalization on them and so they want to make it as difficult as possible to do. It takes a fuckload of money to get in, and the only people who can really take advantage of it are people who are already stupid wealthy.

That way HC can say “look how safe we’ve made this” and all of their buddies can get in and make a fuckload of money. All of the early companies were stacked with former politicians, former cops, Bay Street investment banker vultures etc. [They’re all falling apart and fire-saleing assets now, which is helpful for us.]

For the first couple of years it was set up so it was basically illegal to use solvents in extraction as you had to have non-detectable residuals of everything. That’s changed now, obviously.

Last time I checked there were not too many more than 100 processing licenses issued across the whole country, and exactly zero that I know of other than us that are setting up to produce at real scale.

Getting retail or cultivation licenses are similar, but I don’t have any experience with those.

Because there’s no real extraction base in Canada, I can get hemp for close to free. I can get extract grade THC for well under $50/lb.

Here’s some prices I was sent late last month from one of our competitors.


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Holy crap lol

I need to get my license

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That actually strikes me as a feature rather than a bug…have you seen what some of the farmers do to their hemp before handing it off to the processor?!?

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please elaborate? the Syrian shake??

thanks

I’ve received everything from 100um powder to 24" sticks. with all manner of inclusions. getting the mill right depends on the extraction process being used. so I’d prefer to do it myself thank you very much.

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I agree with @cyclopath here @Lincoln20XX ! When milling is left up to anyone but the processor, the biomass inevitably winds up containing everything from field dirt & rocks to baling twine, fencing wire, plastic debris, and all manner of insect & small rodent parts! :face_vomiting:

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I think someone posted here one that had a used bandage in it!

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Agreed on all counts.

Thankfully there are some ways that hemp cultivators can creatively comply with the rules that by happy accident result in a very extractable product on the other side of the “definitely not a milling process” that some cultivators go through as part of their harvesting/finishing process.

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More shiny stuff!

600L reactors are hecking huge.

That 20L roto should be a goer.

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Is that an EnCann Logo on the glass!??

Brownie points for you my friend!!!

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Yup, all of our glass is custom made for us by David. We got a 100L glass isolate reactor from him as well.

The quality to $ ratio can’t be beat.

All of our stainless equipment is tagged with our company name/logo as well.

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We did more videos! These ones are with our controller, Barb. She worked for CRA - which is the Canadian version of the IRS - for 30 years.

This one is a good watch for regular humans:

This one is targeted at accountants, finance people, and similar. The working title was “compliance compliance compliance” and it’s 5 minutes long:

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Sounds like a solid team!

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Tractor parts and civil war era coins.

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Something else that we’ve got on the go that y’all might be interested in: we’re looking at getting an ASME U stamp so we can make our own pressure vessels.

Getting other people to do vessels and pressure work for us has been a serious pain in the ass.

And we’re gonna need more vessels and such as time goes on.

Especially when ASME changes to stored energy being the determiner of you needing a stamp or not, no longer saying ‘under 6" is fine for the most part.’

If you want something done right, do it yourself, right?

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That’s fantastic… keep me posted on that one. Could be a really great further area of partnership.

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I was thinking the exact same thing :slight_smile:

“Let’s just build our own pressure vessels” falls under the banner of “more” I think.

So does this - I think @cyclopath would likely approve?

Japanese CNC from the late 70’s? Built like a goddamn tank I bet.

Runs on paper punch tape instructions though:

image

Good thing you can convert em over to being controlled by a laptop pretty easily :slight_smile:

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If you are gonna do the ASME thing hit me up.

I may have a few other things for you to make as well if you guys are interested in fleshing out a product line.

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To be honest I really don’t want to be an OEM for much except just our own equipment, but if we’re getting a stamp the organization that holds it needs to be able to make money and not be a black hole, so… feel free to shoot me a message. We’re a ways out on anything stamp-related happening, but it never hurts to have a conversation to set the stage for when we get that far.

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