Captor Capital (CSE: CPTR; FRANKFURT: NMV; USOTC: NWURD) continues to grow its position in the cannabis sector. Investors learned that the company successfully sealed the acquisition of Mellow Extracts, LLC (“Mellow”), which will produce ultra-premium oil in a state-of-the-art extraction lab facility in Costa Mesa, California. In addition to this, Mellow will provide oils and premium concentrates to Captor’s retail outlets.
“Cannabis processing and manufacturing is an incredibly fast-growing market segment, and we believe Mellow will be an important asset for Captor,” said Captor CEO, John Zorbas. “It is a very exciting time with Mellow’s expansion in Costa Mesa and they fit the profile for Captor’s overall investment strategy in the space.”
With the acquisition done, Captor Capital has opened the door to augment its operations and increase total revenues from Captor’s retail cannabis investments.
[Captor Capital has acquired Mellow Extracts in Costa Mesa, California, which will produce ultra-premium oil in a state-of-the-art extraction lab facility.]
The Mellow Extracts acquisition follows acquisitions of leading cash generating cannabis dispensaries, including MedMen-branded locations in West Hollywood and Santa Ana, and the popular CHAI dispensary in Santa Cruz. Chai already boasts revenues of USD$8.4M (2017), as well as a license permitting cannabis delivery in the market area, giving investors much to chew on as Captor capitalizes on the broader range of cannabis products available through the Santa Cruz dispensary. The news gets even better. Renovations are getting started to triple the sales floor space in the dispensary, which will allow Chai to expand its product line-up to include a significantly broader selection of flowers, edibles, extracts and other cannabis products.
More and more investors are paying close attention to Cannabis concentrates known as cannabis ‘extract’. The segmented extract market includes pharmaceutical, cosmetic, paper and textile industries. Extracts serve many applications in the pharmaceutical industry and used to treat fatal diseases such as HIV-AIDS, posttraumatic stress disorder and other neurological problems.
They come in many forms: phoenix tears, shatter, wax, hash, vaporizers and oil being the most popular owing to high demand for its clinical use. Grandview Research reports that the oil segment is projected to record the fastest compound annual growth rate (CAGR) of 40.4% through 2025, while the recreational segment is expected to register a CAGR of 43.2%. Remember, oil is just one of the extracts.
[The cannabis oil segment is projected to record the fastest CAGR (compound annual growth rate) of 40.4% through 2025.]
With nearly 40 million residents and more than a million medical marijuana patients, California is expected to capture about a third of the North American cannabis market (PRN Newswire). Total cannabis sales are projected to reach $25 billion in that state alone, meaning that the production of extracts will keep Captor Capital and the CHAI dispensary very busy — and profitable.
Having added Mellow Extracts’ extraction lab facility to Captor’s acquisitions of the Chai dispensary, as well as MEdMen locations, Captor Capital is poised to extract significant revenue from its growing footprint in the California cannabis market.
Continue watching this space for more news about this innovative cannabis company.
See a brief here: https://www.bloomberg.com/quote/CPTR:CN.
CSE: CPTR; FRANKFURT: NMV; US OTC: NWURD