A new series of mobile extraction units will soon have the potential to generate US$200 million each on a yearly basis, according to KRTL Holding Group, Inc. (OTC: KRTL).
On Wednesday, the company announced that its wholly-owned subsidiary — KRTL Biotech, had entered into a mutually beneficial arrangement with Entexs Corporation and Iron Sight Industries, a company with expertise in closed loop system extraction and an expert in cannabis farming and the rapid deployment of mobile systems.
Together the companies will be operating a series of mobile extraction units that can easily move across various state lines with no impending legal issues. They initially plan on finalizing contracts for the deployment of that technology in Washington, California, New Jersey and Oregon and will move into other territory later.
KRTL says that Entexs was instrumental in this new project by developing a closed-loop system designed for remote environments that can process up to 2,000 pounds of biomass on a daily basis. This new technology, remotely operated through a mobile app and digital interface, has solved key problems that made mobile extraction units unviable in the past.
“We’ve been working on a mobile prototype for some time, but it was always meant to be used in-house for an extraction-as-a-service model, when Daniel (CEO of KRTL) approached us about a partnership and laid out what KRTL had in mind operationally, it was a no-brainer to make our first production unit available for their exclusive use,” said Emil Bayan, Chief Operating Officer of Entexs.
“We’ve changed the hemp and cannabis extraction game with our closed-loop technology for traditional stationary equipment, we’re excited to carry that same disruptive spirit into the design of this industry-first solution for KRTL,” added Bayan.
Through a combination of the compliance, banking and legal knowledge of KRTL alongside expertise in operational efficiency and rapid deployment derived from a U.S. military model from Iron Sight and the extraction proficiency of Entexs, KRTL says that it has crafted a solution that will minimize risks for investors while strengthening access to cannabis, hemp and psilocybin extraction opportunities going forward.
At full capacity, KRTL anticipates that it will be able to produce more than 8,500 litres of extracts on a yearly basis with each extraction unit. It says that amount is equivalent to 8,500,000 grams of high potency concentrates that can be distributed through retail locations with an earning potential of US$200 million per year for just one of these setups.
“We’re incredibly excited for this opportunity, a brick-and-mortar extraction lab typically takes 12-18 months to standup once all financing and vendors are in place, then it is restricted to a geographic region. If that region’s demand or supply lines dry up or become over-saturated as we’ve seen happen in the Oregon and Californian markets, that’s a lot of overhead to maintain raising the risk for stakeholders,” said Daniel Ball, CEO of KRTL.
“By creating both a solution and methodology for quickly inserting into remote legalized states for hemp and cannabis production, we significantly lower stakeholder risk and maximize revenue generation potential. What’s even more powerful is that the methodologies that KRTL have developed, directly crossover to psilocybin, meaning this extraction solution can be deployed for psilocybin extraction as recreational psilocybin starts legalizing, quickly taking advantage of those early burgeoning markets – this is truly a first of its kind model.”