Industrial Scale Extraction - Canadian Investment Opportunity

[Lincoln20XX]

Thank you for your kind words, @Photon_noir!

As I said before:

@Lincoln20XX

Many of the smartest people we know have generously offered their knowledge and assistance to us here at EnCann, and for that, we are humbled, and we thank them. We could not be the company we are today without them.

If we are as successful as it looks like we can and will be, it will be because of all of the incredibly talented people that have put their time and faith into this crazy dream.

As hard as it’s been these past few years, I’m incredibly thankful I’ve had this experience and made the connections I’ve been able to.

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Here’s the text of the message I sent to the investors who funded us so far in this round - two of the three are existing investors who are doubling their position in EnCann.

I presently estimate that based on our current contracts, our expected revenue per kilogram of biomass material processed should be in the $100 range.

Because of the investment you have made in us, we should be able to process well over 600 kilograms of hemp or cannabis biomass per shift very soon - by the end of the month, I hope.

With the equipment we have on hand and that we can purchase and commission with these extra funds, we should be able to process upwards of 200 kilograms of biomass per hour before we hit any substantial process bottlenecks.

I expect our net per-kilogram revenue to drop to about $20-30/kg by this time next year, or earlier. But by then, we should be able to process 1000kg per hour instead of per shift.

Because of this investment and your belief in us, we will be able to get operational at a level that should allow us to fund most of the rest of our expansion out of revenue or through other non-dilutive forms.

We couldn’t do this without you, and we will be working very hard over the coming days and weeks and months to ensure that we use this investment to get us to where we need to go.

By the end of August, our runway should go from being measured in months to being functionally infinite.

That’ll be nice.

[Lincoln20XX]

We got an early Christmas present today at the EnCann loading dock.

Seven crates of steel equipment from a pharmaceutical equipment manufacturer, and four crates of glass.

I love unboxing shiny stuff.

[Lincoln20XX]

More shiny!

[Lincoln20XX]

If anyone wants to see the more corporate pitch, we’re listed here. We should show up on the home page.

Canadian Investment network – Global network of Entrepreneurs, Angel...

[Trichomeworks]

Hey Lincoln, is this from China? Vendor?

[Lincoln20XX]

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

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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.

[tweedledew]

Holy crap lol

I need to get my license

[cyclopath]

@Lincoln20XX

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

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?!?

[moronnabis]

please elaborate? the Syrian shake??

thanks

[cyclopath]

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.

@cyclopath

ask any extractor using ethanol what they think of biomass hammer-milled for CO2 extraction.

[Photon_noir]

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!

[MagisterChemist]

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

[Lincoln20XX]

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.

[Lincoln20XX]

More shiny stuff!

600L reactors are hecking huge.

That 20L roto should be a goer.

[thesk8nmidget]

Is that an EnCann Logo on the glass!??

Brownie points for you my friend!!!

[Lincoln20XX]

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.

[Lincoln20XX]

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:

Barb Thomas, Controller, EnCann Solutions

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

The Importance of Compliance

[echo89]

Sounds like a solid team!

[echo89]

Tractor parts and civil war era coins.

[Lincoln20XX]

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?