HTC Extraction Systems (TSX.V: HTC) Leveraging CBD Extraction, Refining Prowess for International Cannabinoid Isolate Markets

• HTC Extraction Systems is an experienced and successful gas, liquids and biomass extractor and refiner using patented technologies for extraction and distillation processes
• HTC is building a 19,000-square-foot GMP Euro-compliant extraction, purification and distillation facility in Saskatchewan, and it is scouting to build another in the United States for hemp extraction services
• The company recently announced a common shares bought deal, whereby, subject to closing, $15 million in aggregate gross proceeds will be added to its bottom line

Extraction and distillation technology developer HTC Extraction Systems (TSX.V: HTC) is celebrating news that a group of underwriters has agreed, subject to due diligence completion, to purchase 15 million units of combined common shares and warrants to purchase further common shares, which, upon closing will amount to an influx of C$15 million in aggregate gross proceeds (http://nnw.fm/5IAac).

HTC is drawing on a wealth of experience in extraction, purification and distillation and aims to become one of Canada’s largest cannabidiol (CBD) extractors and refiners as it builds a strategy for processing hemp biomass under an infrastructure that will include: a 19,000-square-foot GMP Euro-compliant extraction tolling facility on six acres of land southeast of Regina, Saskatchewan, and a large‐scale extraction facility at a yet-to-be-determined location in the United States, according to a company news release published in June (http://nnw.fm/YMn2W).

Over time, the company has developed and optimized proprietary systems for biomass, gas and liquid extraction, as well as for the distillation of ethanol and ethanol-based solvents used in the extraction process, and those resources provide the backbone of the company’s products and services.

“HTC will continue to drive the business model, where HTC will own physical assets at our extraction and purification facilities while serving the clean energy and hemp biomass industries,” HTC Executive Chairman Lionel Kambeitz stated in the news release. “Our business model calls for both participating equity ownership and tolling revenue.”

In Canada, HTC has an agreement for the 2019 growing season through which it will receive a projected five million kilograms of hemp biomass for extracting CBD full spectrum oil, using Health Canada-approved cultivars. HTC will receive a percentage of the distillate as payment of the tolling fee. Another tolling agreement with a 60,000-acre farm is pending for the 2019, 2020, 2021 and beyond seasons.

The company’s management plans for a facility in the United States that will adapt the scalable production, extraction, purification and distillation techniques that it has developed in Canada. Leveraging their relationships with successful farming leaders, management will draw on standard operating procedures (SOPs) and best practices in genetics, fertility, crop protection and ingredient sales with multi‐year contracts. HTC then intends to pursue plans for two annual crop rotations producing new high-CBD genetic varieties. The company is also continually evaluating potential synergistic technologies that could use distillate chromatography, chemical isolation and molecular distillation for production benefits.

HTC also intends to leverage its relationship with its related entity, Purely Canada Foods, to provide sales and distribution for its Ingredient CBD market under the brands of Purely Canada Hemp, Purely Canada CBD, Purely Canada Cannabinoids and Purely Canada THC. Purely Canada Foods is expected to develop multi-year ingredient supply contracts with its existing and new global food, beverage and animal food industry customers.

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://nnw.fm/HTC

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