Pure Extracts and Grown Rogue form JV to Expand Product Offering in Michigan

Pure Extracts and Grown Rogue form Joint Venture to Expand Product Offering in Michigan – RICH TV LIVE – August 19, 2021 – Pure Extracts Technologies Corp. (“Pure Extracts”) (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ) today announced the signing of a Definitive Agreement for a joint venture between its Michigan subsidiary, Pure Extracts USA Inc., and Grown Rogue International Inc.’s (“Grown Rogue”) (CSE: GRIN) (OTC: GRUSF) Michigan subsidiary, Golden Harvests, LLC (“Golden”) to expand Grown Rogue’s product offering and bring Pure Extracts’ portfolio of products to Michigan. Grown Rogue is a multi-state operating (MSO) cannabis company with operations and assets in Oregon and Michigan.

There i apologize yeah no worries so uh we signed a deal with golden harvest which is the opportunity of of grown rogue which gives us access to the michigan market obviously the michigan market is the biggest and most profitable state in the us from a new entrance into the recreational space so they did i think 170 million dollars in sales in uh in the last month

That they reported just to give you a lot of size so like run rate that’s going to be more than all of canada so from one state yeah yeah they use a lot of products in michigan yeah it’s great great great uh 170 million dollars yeah yeah yeah it’s crazy crazy and that’s just during this yeah it’s a crazy number which is you know why we picked michigan we’ve been

Working on this uh with um with uh golden harvest for about a year and a half now so trying to structure this so when we started we wanted to have um access to the us market that’s why we listed on the csc also originally so we could do deals like this and it wouldn’t violate you know any of our listing issues um so with that you know we’ll be putting product of

Uh pure pure pure chews pure pulls we’ll be in in store in michigan so we’ll set up our production facility we’ve been working with the engineers and whatnot uh to get uh our equipment shipped from uh bc up to michigan so that’ll start crossing the border shortly um and then we’ll be in production about 90 to 120 days you know we should be in production for uh for

That we’ll be producing um the pure pulse pure chews plus the golden harvest the grown rogue product um and we’ll be using their sales force so we don’t have to go educate a sales force and you know have relationships with the dispensaries um they already have that they’re in over 100 stores already out of the 400 and then we have some distribution through another

200 stores so we should be able to hit you know three or 300 stores pretty easily within the year of penetration through retail sales so we’ll be producing both our products uh golden harvest grown rogue product and then we’ll be doing white label products for other producers that don’t have the the ability to produce extracted products and if you look at the

Sales so far in michigan about half a little more than half is actually extracted products so they’re already making the ship from flower to to extracted products so we’re pretty uh we’re pretty excited about that we should we should be pretty strong right out of the chute and the way it looks like most of the dispensaries run out of product pretty quickly when

The ship so um yeah we’re uh we think we’ve picked a great uh state to uh to start off in and if this goes the way we think it is we’ll be expanding in the summer model with other partners um into the southern states wow that’s fantastic so what does this mean for for your company like what what type of revenue are you expecting based on this joint venture well

If you look at the market of what they’re selling in our core business coming in vapes you know that’s about 40 to 50 percent of the revenue base per month um you know if we can capture a half a percent of of that you know we’re talking you know three four five million dollars of revenue eventually so you know we’re we’re estimating pretty low that we’ll start off

Like a million to two once we get into run rate um so i think a million dollars is is pretty uh pretty low to be honest to a month as we ramp up um sales are are going to be pretty uh pretty robust from what we see gummies sell out you know by the time they’re shipped so we’re in force to four provinces now as you know for ontario bc alberta uh and saskatchewan

And our gummy invade product is selling very well so we don’t believe that there should be any difference in the us to canada so um you know we we think we can crush it so we’re not we’re not giving any guidance yet but if we just look at the market itself you know we think we can penetrate quite well and and not having to uh educate our new sales force and make

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Those relationships with the dispensary because it’s a direct model in the u.s where we sell directly to the dispensaries um they already know all these people so through our two distribution partners so we’re pretty excited about that and we’ll definitely do some white labeling and the core extraction for other parties that need uh they need oil products so that

That will kind of round us out within the michigan market wow i have a question from jeffrey lutz he likes to know how the fireball gummies are selling selling really well you know we’re really happy with the way they’re selling um the product is uh is um fantastic both from a flavor profile and a packaging profile um what we thought in the dispensaries is coming

True from a uh consumer perspective they love the proprietary packaging of the blister pack it’s actually the what’s propelling that product to the flavor profile obviously in cinnamon fireball everybody likes it we’ve all taken a shot of fireball i’m sure back in the day um so that brings back some memories and you know the packaging in that booster pack slip

It in your jeans pocket doesn’t go all over you don’t doesn’t go clumped together like the little baggies of product that you get some of the other manufacturers so um it’s been really strong and you’ll see our cbd product is going to be hitting the market shortly also in a couple different flavors so that’s actually gotten some really good traction from the uh

From the provinces wanting to order that in for september i have another question from tony he says i tuned in late and wonder what stores and what cities in michigan you’re going to sell through gage is huge in michigan yeah absolutely so obviously uh bruce’s uh bruce’s gage will be one of the uh one of the uh partners that we’ll be dealing with um i can’t tell

You the locations yet because we just signed our definitive so we’re just going to the retail outlets we’ll be in a hundred stores uh golden harvest is in a hundred stores today with their flower product every one of those partners will take the uh the extracted product you know we would think they’re asking us for it so if that if that uh caller or if you call

Them that on youtube um you know emails us at info at purexcorp.com we’ll get back to you with the locations that they’re in okay fantastic i also have a couple questions myself um let’s discuss the michigan market what entering when entering the michigan market what does it mean for pure and what will we be producing there what will pure be producing in michigan

Sure so what it means is we transform the company into a multi geography company we’re both in canada and the us mso evaluations are much higher than they are in canada if we look at uh gauge or red white and bloom you know their market caps are 200 million dollars plus um you know we’re kind of engaged as a or we’re gauged as a canadian only company play um this

Gives us obviously access to one of the biggest states per revenue uh in the united states so um it means you know we’ll be reevaluated for where we are we’re not going to continue to trade you know we’ve doubled in the last you know month and a half you know we’re still uh very economical and the buying has been definitely coming in from the us knowing you know if

We get the sign which we did you know from an mso perspective the best the best state to be in from a revenue a profitability perspective because margins are still really good in michigan and two having the expertise coming from canon and the brands that we’re developing that um that we’ve used in the canadian uh dispensaries have already been tested so we don’t

Need to stub our toe and products that don’t sell in michigan we wouldn’t know what sells because we’re already selling it in the canadian market so it means you know our market cap you know should you know definitely go north of where we are don’t have a crystal ball but when i look at my peer group we’re still severely undervalued in comparison yeah and that’s

What i have been telling and letting everybody know that i feel like you guys have every single box checked of an early stage company with the only exception being the share price is lagging with everything else that is happening you guys are growing you’re growing your revenues you’re expanding you’re in the psychedelics and cannabis phase two very fast growing

Industries and you’ve got a tight share structure with growing revenue so everything we look for for an undervalued underappreciated underexposed company and the only thing lacking is the share price which really is to the advantage of an investor a long-term patient investor could see huge price appreciation if they’re willing to invest and hold and wait for

The company to grow and in saying that can you give us an update on your canadian sales sure so as i said we’re in uh we’re in four provinces now so we’re in ontario bc alberta and saskatchewan we’ve also listed on ava medica’s medical platform that deals with the veterans fulfilling cannabis requirements to the vets um which is you know very important to us

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Because of our product they’re high high volume users and they need very potent and long onset products like our vape products they buy our vaping and gummy products so they chose us because of you know our qualities of the vapes that you know are long-lasting because they have some obviously ptsd and some other issues um you know we’ve uh we’re gonna give some

Guidance after we get our run rate uh into 4q the we’ve received repeats from the provinces already so the sell through from the product has been quite uh nice and the orders have been in the uh in the six digit uh initial uh load-in uh amount so we’re quite pleased with that and uh you know getting a listing in ontario uh products hitting the shelves i think uh

On the 27th in ontario as you know they close their product calls for new lp’s listing in ontario and they said you know if anybody’s not listed already um their next product call won’t be until 2022 so they have to wait you know six to nine months for a product call we were lucky enough to be selected for um some of our products in this year we’re obviously in

August so um we’re continuing on and building our experience in in ontario so we’re pretty happy that we were selected for that because obviously ontario although it was a slow growing market now it’s obviously picking up steam with you know over 400 stores in the province if there was anything you wanted to share with investors someone that’s new to pull someone

That’s new to peer extracts or someone that’s an existing shareholder today if there’s any information or any advice or anything you want to say what would that be it would be just watch us you know we we said we were gonna execute in uh michigan they thought you know we could never get it done in the the hottest um growing state in the united states to be an

Mso nobody thought that we could be listed in four provinces we’re listed in four provinces you know when we said you know the share price was undervalued when i was on the show at 23 cents a lot of my core investors came to me and said i’m taking big positions you know you know i believe in the company we believe in the management team you know we uh we know

What we’re doing this isn’t our first uh our first cannabis company and we’re going to continue to grow the business we’re here to grow revenues we’re here to build a solid business and uh i think you know the investors will will recognize you know we’re an execution business this is um this is something that we’ve done before and my management team is all about

Booking revenue and expanding our footprints now being a multi-uh multinational being in the can in the us you know were were severely undervalued in comparison to our peer group and you know i still think you know there’s significant upside and you know we can see by the amount of appreciation you know the accumulation that’s going around on it around 40 cents

You know we’re not we’re not having any slippage right so people are accumulating the stock they’re long term on us um we’re executing and you know i think i think we’re you know um have enough staying power both in the cannabis area we’re in the psychedelics you know we’re moving forward with our trials um our functional mushrooms are selling nicely on amazon so

We have you know multi-tier revenue sources that most companies of our size don’t so we’re pretty we’re pretty happy with our structure what do you think about biden you know he he essentially became the president with a huge cannabis mandate and since he’s been president there’s been nothing so is there is there something i’m missing is there like a disconnect

Everyone said biden was going to be positive for cannabis and to be honest with you since he’s become president cannabis has really lost steam so is there something coming like is there going to be a catalyst because i’m talking about the biggest companies in the world like the true leaves are struggling you know um the canopy growths the till raise that they’re

Just not getting any interest despite the fact that they’re producing enormous revenues cure leaf just reported enormous revenues and the stock goes down so what do you think it’s going to take to get the momentum back or is it just because it was summertime and are we on the verge of another bounce back here because typically cannabis does do well in the fall

That’s typically when it does its big move is between september and february are we set up right now i mean it looks like we’re set up are we set up for another resurrection right now what do you think yeah yeah i i you know cannabis is very cyclical you know we’ve you know we’ve seen this now for a number of years for whatever reason cannabis trades extremely well

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September to uh february i don’t know if it’s the traders are all in muskoka or whatnot but um it is it is what it is tilray made a major acquisition on accumulating the the ventures for uh med men a couple days ago uh yes so they’re not spending 200 million dollars because they think biden’s not going to you know convert this into a federally legal legalized

Product there is you know chatter obviously that they’re working on a cannabis bill to legalize this fed but federally so i think you know the reality is we’re gonna you know obviously there’s some bigger issues that they’re trying to deal with at the same time you know obviously covet and afghanistan and whatnot are two major issues that the administration i’m

Sure is dealing with but cannabis i know is on their radar screen and i know that they are you know working on bringing something forward that will make it federally legal so you know tilray is you know you know slash africa is way more dialed in than i am you know from a federally us factor tilray is very strong um from a u.s administration perspective so they

Don’t they don’t inject that kind of capital because they think that they need to own some convertible debentures so they they believe that it will be federally legal sooner versus later so that’s you know that’s my personal thinking that has no basis in anything else than my personal opinions i have another question from tony he was asking if fireball is going

To be receiving a royalty from you guys yeah so in our uh in our deal depending on the products that they do receive uh they do receive a a royalty on products sold okay great okay i don’t have any other questions right now um anything else you want to leave with investors before we say goodbye because i know you’re really busy yeah i appreciate that um first of

All i want to thank my investor group you know you gave us support you know we’ve been trading very well you know there’s been a lot of shares traded and you know the the capital that uh my investors uh invested you know when we were a little bit down you know so i thank you for supporting his talk to the new investors you know welcome to welcome to to pure i think

We have a lot of gas in the tank and you know we’re uh we have a great management team doug and uh sandy and uh andy my head of sales you know they’re working diligently to make this a profitable company and continue to grow the business on all fronts michigan is a major milestone for us and as it hits the the u.s market and the the folks in the u.s you know see

That we’re entering um a extraction company from canada has the experience that we have both from the legacy market and in the provinces that we’re in you know we’re and then come september with the you know the cannabis wave that usually happens i think you know we’ll be materially um higher than we are today that is fantastic thank you for your time today ben

Nikolevsky the ceo of pure extracts now remember guys rich tv live is strictly for information education purposes please do your due diligence do your research before you invest in anything that we talk about or discuss here in rich tv live i’m an investor just like you guys and just like you guys i’m always hunting profits ben has been nice enough to take his

Time today and tell us what’s going on with the company and break the news here on our show thank you for joining us again ben always a pleasure and anytime you have any big breaking news we love to be one of those places where you can break it first okay we love rich tv we’ll be back thanks for having me rich i appreciate it thank you ben keep up the great work

Congratulations on all your milestones and and i know you guys are going to do your best to just continue to grind out more deals and more announcements and more big news and we’ll be here to tell the story i really appreciate the time thanks guys thank you ben okay guys if you like these videos remember to smash the like button comment down below share the video

Everywhere and subscribe if you’re live thank you guys for watching remember if you’re not winning you’re not watching we bring you the winners and we bring them to you first i think pure extracts is undervalued underappreciated underexposed i think the upside is tremendous for this company thank you guys for watching have yourselves a nice day

Transcribed from video
Pure Extracts and Grown Rogue form JV to Expand Product Offering in Michigan By RICH TV LIVEliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-08-19T163237+0000endTimestamp2021-08-19T171927+0000}

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