CALGARY, Dec. 17, 2019 /CNW/ - Thar Process, Inc. ("Thar") and 51st Parallel Inc. ("51st") are pleased to announce the creation of Canada's first industrial-scale extraction and purification toll-processor, Thar Extracts Alberta ULC (the "Joint Venture" or "Thar Extracts Alberta"), owned 60% by Thar and 40% by 51st. Thar currently operates three industrial-scale extraction facilities in the US. This exclusive Joint Venture represents Thar's entry into the Canadian market.
Based in Lethbridge, Alberta, directly in the heart of Canada's prolific "irrigation belt", Thar Extracts Alberta will be the only Certified USD-Canada Organic and cGMP Certified processor capable of extraction and purification/isolation services, including THC-Free Distillate, CBD Isolate and minor cannabinoid isolates.
Targeting an on-stream date of fall 2020, to process the 2020 crop, and an initial extraction capacity of up to ~1,600,000 kg and ~21,000 kg of isolate production per year, Thar Extracts Alberta expects to be the leading producer of solvent-free extracts, ingredients and blends.
Todd Palcic, President of Thar, stated, "We are very excited to start processing Canadian hemp with the terrific team at 51st in a market with a high regulatory barrier to entry. Canada is poised to become a market leader in the global supply of hemp-derived cannabinoids and we are confident we can position Thar Extracts Alberta as the leading processor in the Canadian market."
Jay Kujath, CEO of 51st, stated, "We see Thar as a best-in-class operator with almost 30 years of experience. This Joint Venture is the result of our effort to think differently in an industry that has spent a lot of capital on repetitious business plans. There is a significant opportunity to disrupt the global ingredient market with access to bulk standardized cannabinoid-based APIs, derivates and other formulations at a price comparable to biosynthesis and lower than the production cost to most licensed producers."
Everleaf Capital Corp. acted as financial advisor to 51st and Stikeman Elliott LLP acted as counsel to 51st in connection with the Joint Venture.
About Thar Process, Inc
Founded in 1990 by Dr. Lalit Chordia and based in Pittsburgh, Thar employs 130 in five American states plus Canada. The company develops new technologies using CO2 that spawn ingredients that meet or exceed US regulations for consumer safety.
About 51st Parallel Inc.
51st is a Calgary-based, bulk cannabinoid-based ingredient processor and manufacturer, focused on harvesting cannabinoids from hemp.
Forward-Looking and Cautionary Statements
This news release may include forward-looking statements including opinions, assumptions, estimates and, more particularly, statements concerning: the corporate strategy and plans of Thar, 51st and the Joint Venture and the ability to exercise thereon; the development of a processing and manufacturing operation at the facility in Lethbridge, Alberta and the timing thereof, including expectations regarding extraction, purification and isolation capacity and production in respect thereto.
When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Thar and 51st. Forward-looking statements are subject to a wide range of risks and uncertainties and, although Thar and 51st believe that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals not being obtained in the manner or timing anticipated; the ability to implement corporate and operational strategies; the state of domestic capital markets; changes in general market conditions; industry conditions and events; the size of the cannabinoid market; government regulations, including future legislative and regulatory developments involving cannabinoids; and competition from other industry participants.
Except as required by applicable laws, Thar and 51st do not undertake any obligation to publicly update or revise any forward-looking statements.
SOURCE Thar Process Inc.