The cannabis industry is the fastest growing market in the world and this is a trend that is expected to continue as new cannabis markets open and as existing markets mature.
One of the most exciting verticals within the cannabis industry is the cannabis oil opportunity and we have been closely monitoring this burgeoning market. Demand for cannabis oils, especially high CBD oil, continues to increase and this is a trend we expect to continue as researchers learn more about the therapeutic value cannabinoids provide. Experts believe it will overtake flower sales by 2020.
Although the cannabis oil opportunity is very attractive, it is also very capital intensive, and this creates a barrier for companies that are trying to capitalize on it. Earlier this year, we came across a company that helps companies capitalize on the cannabis oil market and we were very impressed with the management team behind this differentiated opportunity.
The company, Xtraction Services, is a leading oil processing solutions company that provides the necessary equipment, service, and expertise, to a network of hemp and cannabis manufacturers around the globe. The company has a proven track record of success with existing clients in California, Florida, Nevada, Oregon, Kentucky, Puerto Rico and Texas. Xtraction is in the middle of a major expansion and is focused on signing new clients in the United States as well as in international markets including Canada, Columbia, and Peru.
Xtraction Services: A Differentiated Cannabis Oil Opportunity
Xtraction Services has been nothing short of an execution story and is currently working with several multi-state cannabis and hemp processors to help scale their operations and provide access to state-of-the-art industrial equipment to capitalize on the rapidly expanding cannabis oil opportunity.
As demand for cannabis oil continues to increase, so have the number of cannabis cultivators focused on it. Many of these companies have realized that they can capture more value by focusing on the production of cannabis oil and are evaluating options to capitalize on it. The challenge that many of these companies face is finding the right equipment and a provider who can educate them on the extraction process.
This is what makes Xtraction Services such a unique opportunity. The company is focused on helping companies master the cannabis oil extraction process and is able to provide the necessary equipment through a leasing program, which greatly reduces the need for a large up-front capital investment.
Xtraction Services provides a comprehensive solution and works with its clients to create an extraction operation that is positioned for success. The company provides a service that is specific to each client and this is an important aspect of the story.
In the Early Innings of a Massive Growth Cycle
Xtraction Services has partnered with leading OEM extraction manufacturers to provide equipment financing solutions for end-use customers. The company represents a multi-faceted growth opportunity and provides extraction equipment in return for a royalty payment or lease income. Xtraction Services offers a full-scale trade-in and refurbishment program for its customers and we are favorable on the growth prospects as a result of this innovation.
Xtraction Services offers lease and royalty programs in-house to ensure long-term client retention and to maximize up-sell and cross-sell opportunities. The company has created a highly scalable model to originate lease and royalty programs through direct and channel sales, and third party manufacturer relationships. This model has been gaining significant traction and this is an attractive structure that allows Xtraction Services to set payment terms to maximize return.
Currently, Xtraction Services is generating almost $5 million in annual recurring revenue and the management team expects to record strong growth in 2019. With more than 300 manufactures in the pipeline, Xtraction Services has significant opportunity for growth.
An Opportunity Worth Watching
Since inception, Xtraction Services has raised more than $8 million and has been utilizing this capital to deploy its equipment and service into new markets. Currently, the company is raising additional capital to further expand its reach and capitalize on new opportunities. Xtraction Services is planning a go-public transaction in 2019 and has entered into a binding letter of intent to complete a business combination with Caracara Silver Inc. (NEX-SILV.H).
When it comes to investing in cannabis companies, it all starts with the management team and this is where Xtraction Services excels. The company is led by a management team that has a successful track record of creating shareholder value with over 150 years of collective experience in scaling high growth businesses, product engineering and development, finance, and operational best practices.
The cannabis oil opportunity is one of the most exciting growth verticals in the legal cannabis industry and Xtraction Services is uniquely positioned to capitalize on this burgeoning market. To learn more about this opportunity, please email firstname.lastname@example.org.
Pursuant to an agreement between StoneBridge Partners LLC and Xtraction Services Inc. we have been hired for a period of 90 days beginning December 11, 2018 and ending March 11, 2019 to publicly disseminate information about (Xtraction Services Inc.) including on the Website and other media including Facebook and Twitter. We are being paid $22,500 stock-based compensation. We may buy or sell additional shares of (Xtraction Services Inc.) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.