What do you do when the THC level is above 0.3%? Products like CBD that contain less than 0.3% THC are legal in the United States, unfortunately batches occasionally measure too high after processing. Pablo Mitre CFO at Remedy Processors joins Dan Humiston to explain how they are helping processors overcome this serious and very expensive problem. Produced by podCONX https://podconx.com/guests/pablo-mitre Click here to go to their Crowdfunding Campaign on MicroVentures
What do you do when the THC level is above 0.3%?
Products like CBD that contain less than 0.3% THC are legal in the United States, unfortunately batches occasionally measure too high after processing. Pablo Mitre CFO at Remedy Processors joins Dan Humiston to explain how they are helping processors overcome this serious and very expensive problem.
https://podconx.com/guests/pablo-mitre
Click here to go to their Crowdfunding Campaign on MicroVentures
[00:00:00] Dan Humiston: Today on cannabis crowdfunding, we are joined by Pablo may Trey, the head of finance and strategy at remedy processor. Pablo, welcome to the show.
Pablo Mitre: Hi, Dan. Thanks for having me.
Dan Humiston: Okay. I appreciate you being with us today and I'm anxious to jump into this because you're filling a niche that just a few years ago, we didn't even realize we needed.
I'm going to take a second just to bring our listeners up to speed and. Talk about the 2018 farm bill, which defined cannabis with less than 3% THC as hemp and made hemp products legal. Now, most of us know THC is the psychoactive ingredient in cannabis that makes you intoxicated or high. So farmers started growing low.
The strains of cannabis or hemp for other cannabinoids, like CBD, but even know it when it's [00:01:00] harvested, the plant has less than 0.3% THC when they assess it during extraction, the THC level tends to rise. Pablo, this is where I want to start. Why does the THC level increase during the extraction process?
Pablo Mitre: Absolutely. there's really two key areas where either will increase. Extractors they're going to take, what's called the biomass, which is. Everything from the plant except the flower and the STEM, and they're going to compress it.
To get those compounds out of the fit in the case of the hemp plant cannabinoids in their natural form , they are in oil.
So while your plant, when you tested it may have had, below the 0.3% THC level, therefore illegal crop when you extract all these cannabinoids out of it, because basically what you get out of that extraction process is cannabinoids. And a little bit of plant matter. You're going to [00:02:00] have a concentrate of cannabinoids.
That's where you see not only the THC level increase, but you see this CBD level, the CBG, the CBN, all of these cannabinoids, they will increase in profile. And you didn't ask him about this, but the second place where you live will increase a lot is the crew. The oil tends to have a lot of plant material and a lot of fats and lipids.
So goes through a couple of processes and then we tend to distill it. And in that distillation, you see also an increase because you're basically purifying the oil
Dan Humiston: So that's kind of bad news for the person that's growing it, because now it'd be considered hot and and that's where you guys come in. So tell us how you remove the access THC.
Pablo Mitre: Absolutely. That's a remedy started. We saw that there was this need to help farmers legally commercialize these oil. And so we use a process that's called chromatography. It's an old process. It's basically, you're running these distillers through [00:03:00] a column where through, using different solvent and using these media inside the column, you're able to separate.
Each single cannabinoid in there. So we're able to find the THC and just basically extract the right.
Dan Humiston: really cool.
Pablo Mitre: Yeah, no, absolutely. And these processes called the remediation and the technology that we use chromatography has really also helped us build our business model or our strategy farther because. We are able to pinpoint any single cannabinoids inside of that column.
So we have that capability now where we're able to very effectively take out not only that Delta nine THC, but we can look at the CBG, look at the CBC, look at the CBN, and we're able to extract each dose in effective way in their isolated forms.
Dan Humiston: That is great. And I suspect that now that there's more government oversight [00:04:00] and there's more pressure onprocessors to make sure that they are within the legal limit. So the need for this particular service that you offer is probably has increased a lot recently.
Pablo Mitre: Absolutely. We are seeing a lot of demand for the T2 remediation services. We also see a love in mind for the other cannabinoid isolation services. And that has increased significantly, the clients who are buying directly from the farmers or from whoever the farmer sells to are starting to realize that it's not just CBD.
The other minor canabinoids each have their very specific qualities and characteristics that make it more attractive if you're trying to make and anti-aging eye cream, or if you're trying to make a muscular pink cream, we've been seeing a huge , increasing demand for both of those services.
Dan Humiston: There's other services too. I know you sell direct. Do you do some wholesaling direct to, I suspect all those services are on an increase right now.
[00:05:00] Pablo Mitre: Correct? Correct. So we signed six specific formulas that are already. They're pretty psyched for it, very specific products. So going back to the example I just gave if our client is trying to make an anti-aging eye cream,
we're going to use the distillate where we. Use a lot of CBG, so that we'll usually have a 10% CBG in the formula with 80% CBD and other minor cannabinoid profiles. But if you're making, for example, the solve or a cream for muscular pain we put a 70% CBD profile. We've 15% CVC
. We found a niche in the cosmetics industry, but these can be phenomenal for any type of food and beverage product as well, or, for all those brands out there as well, who are trying to differentiate themselves with.
A product that's better for sleep, but that's better to, get more energy and , feel a little bit more better with your day. Yeah, we're seeing a huge spike in demand for dose as well.
Dan Humiston: You're in the middle of a crowdfunding campaign and that's what we're here [00:06:00] to talk about. It's hosted on micro venture. So tell us a little bit about the campaign.
Pablo Mitre: We still have , special period going on right now, so for investors that get in before we hit a 150 K the valuation cap on the convertible note is only 4.25 million. Versus if you come in after it's gotta be 5.5 so there's still an opportunity out there for anyone interested to getting , in the early perk.
Dan Humiston: Yeah in that, not much of an opportunity because you're almost there, like you said, you're at 112. What are you going to use the proceeds for?
Pablo Mitre: Most of the money's going to equipment about 70% of it is going to equipment about 15% is going to marketing, but 15% is for working capital.
Dan Humiston: I got. Gotcha. Yeah. That's yeah man. That's it's exciting stuff. You're right. This industry is exploding right now and every day there's a new study or new research coming out about the benefits of not just CBD, but all the other cannabinoids that you mentioned earlier. And man, if
you're at the [00:07:00] doorstep with these large cosmetic companies that want to add this. They need quality products. So you're right at the doorstep there. I'm going to have all your information in our show notes. So if anybody wants to look at this investment opportunity go to the MicroVentures website, because it has all the information has got that, everything you need to know about that, about their company plus projections and everything.
It's really well done. Oh, you know what? We didn't even mention that this is probably the best part. We didn't even mention it. You can do this for a hundred bucks. Like you canown a piece of the company for a hundred dollars. That is so cool.
And you better do it soon because like you mentioned that once it gets to 150, you lose out on this incentive deal. So that's good. I wish we could talk more. I know you guys are stupid, we're busy and you're off to the races with this, but I really appreciate you being with us today.
Pablo Mitre: Thank you, Dan really appreciate your time and the opportunity and hope to be back in one of the multiple cannabis, both cause he has her built soon really loved the content you guys make. So thank you [00:08:00] for the opportunity again.