1933 Industries Provides an Update on its Nevada Hemp Processing Facility

1933 Industries is pleased to provide a progress update regarding its hemp processing facility (“Lab”).
 
Phase 1
The Company has been diligently working with a team of engineers and chemists to develop a customized hemp extraction facility capable of producing isolated cannabinoids such as CBD, CBG, CBC and CBN, as well as full spectrum and broad spectrum oils without THC, at full scale while maintaining a significantly lower cost structure than other comparable hemp extraction facilities. The Lab is being designed to comply with existing and anticipated state and federal hemp manufacturing rules and GMP guidelines. The Company is taking necessary steps to ensure the long-term viability of the Lab and has undertaken a mandatory peer review of the proposed equipment as required by Clark County.  
 
Project Scope and Expected Output
The Lab will be located adjacent to the Company’s current cultivation facility in Las Vegas. The 12,160 sq. ft. existing building has received the necessary approvals for new zoning and permitting for hazardous materials from County authorities and has secured an Industrial Hemp Handler Certificate from the Nevada Department of Agriculture (NDA) Industrial Hemp program. Permitting has been completed for fire and city inspections as well as H-3 hazard zoning.
 
The facility’s monthly processing capacity is estimated at approximately 68,000 kg. (150,000 lbs.) of hemp biomass to produce 5,000 kg of full spectrum oils or 4,500 kg of CBD isolate.
 
Design Benefits
The proprietary FDA level, state-of-the-art hemp extraction system has been designed to extract CBD oil with an average efficiency rate of 2.3 times greater than the current industry standard, thereby cutting costs by at least 50 percent. The alcohol extraction process, coupled with a proprietary short chain/long chain liquid/liquid extraction customized system, has been designed by a team of engineers and chemists from FDA regulated facilities in the pharmaceutical, bioplastic and biofuel industries. The process has been thoroughly tested with positive results in, among other things, automation, the elimination of expensive chilling, recovery of all solvents and reducing the carbon footprint to approximately 12 times less than other facilities. The Company’s proprietary extraction system is projected to produce the same quality of CBD oil for less than half of the $1.50/g average extraction cost for the hemp industry. 
 
The Lab will also have the ability to deliver broad spectrum oils and distillates consistently without tetrahydrocannabinol (THC), the principal psychoactive constituent of cannabis and one of over 100 cannabinoids identified in the plant. Processing will ensure the THC content registers under the current 0.3 percent legal limit. The Lab has been uniquely designed to process live plants, and the Company will have the ability to formulate cannabinoid content into its own oil compounds and customize its own blends.
 
Phase 2 Construction and Installation
While the Company expects that the required peer review will take four weeks to complete, electrical and mechanical systems are being prepared in order to ready the building to receive the new equipment. Tenant improvements of the existing building and all phases of construction will require approval by Clark County. The project will take anywhere from 4 to 8 months to complete, based on the response times and approvals by the city and county.