Before launching Precision Extraction Solutions in 2014, Nick Tennant, the company’s chief executive officer, worked as a private cannabis consultant for grows and extraction.
Then he had an epiphany. “I realized I wanted to produce the world’s finest, top-quality extraction equipment with premier customer service and tech support,” he said. Precision Extraction Solutions now employs more than twenty people in five states. Corporate headquarters is located in Detroit; the company has an office and warehouse in Costa Mesa, California, and a showcase demonstration lab in Denver.
Until now, cannabis extraction has been a small, home-based industry, producing tiny quantities for personal use. In a home-based operation, it is impossible to produce enough extract to accommodate any reasonable consumer demand or anticipated industry growth. Then there’s the safety problem: More than a few explosions have resulted from inexperienced operators using inferior, unregulated extraction methods and technology. Additionally, there is no regulated mechanism for home-operator testing. However, all of that is changing rapidly as the shift to professional, compliant labs becomes the norm.
“Colorado, Oregon, and Washington, in particular, have stepped up to the challenge by enacting regulations that require equipment and laboratory setups that meet internationally accepted safety standards,” Tennant said. “Other states, including California, Michigan, Nevada, and Pennsylvania, are following suit.”
IN PRECISION WE TRUST
To be sure, as state regulation develops, gargantuan professional processing facilities will proliferate. The new facilities, or laboratories, can produce large quantities of high-quality extracts in a safe, regulated, and profitable environment. Enter the Cannabis Laboratory Accreditation Program. The program is designed to assure patients and regulators that testing facilities meet established standards for assessing cannabis products. Since Precision works with many large scale-producers and employs experts in both local and state-level code compliance, Tennant sees this as a massive growth opportunity.
“The company’s expertise covers a wide range of competencies including ASME Section VIII code, UL, International Fire Code, and 3A food-processing compliance,” noted Tennant. “Our equipment is made of sanitary, food-grade stainless steel meeting or exceeding FDA requirements for food processing. We believe in responsible and standardized laboratory practices for operator and consumer safety. Testing of the end product for potency and contaminants is common for any medicinal or food product. The cannabis industry shouldn’t be any different. People should be able to have trust in the products they consume.”
THE BIG 150
Precision operates more than 150 extraction systems throughout the United States, located in every regulated jurisdiction. Many of the nation’s top extract brands use the company’s equipment. According to Tennant, market analysis indicates the cannabis industry will experience 30 percent annual compounded growth. Precicion’s growth prospects, he added, are expected to meet or exceed that. One case in particular exemplifies the company’s strengths.
In late 2015, Precision was hired by DabStract Labs, a Washington I-502 licensed processor. In a matter of sixty days, Precision, via its equipment and professional training services, was able to turn DabStract into a compliant, successful, and profitable concentrate processor. Over the following six months, Precision helped DabStract develop custom products and processes allowing them to become one of the state’s premier and most sought-after producers.
Tennant sees consolidation looming in the near future. “The extraction-processing business will become more industrialized and consolidated in the coming years,” he said. “We are extremely bullish on growth. We believe the extraction segment of the marijuana industry will well exceed the growth of the overall market.”
How much, on average, does it cost to set up a compliant lab with certified extraction equipment? “Generally under $100,000, and [the project] can be completed in about thirty to sixty days, depending on client preparedness,” Tennant said. “The process begins with initial site planning, and compliance and architectural renderings, which are followed by equipment selection and buildout. Finally, permitting, installation, and training.”
THE JUDGE & THE EXECUTIONER
Precision’s flagship product is the PX1, also known as “The Judge.” The extraction system costs $34,988. According to Tennant, the PX1 is the most ergonomic, efficient, affordable, compliant extraction unit on the market. The system can process thirty to forty pounds of material per day. Its patent-pending on-demand temperature control makes PX1 extremely user-friendly, and its size makes the system versatile. In addition, certification make PX1 compliant in all regulated jurisdictions.
Then there’s the hulking PX40, also called “The Executioner,” the world’s largest extraction machine. “The PX40 was developed in order to meet the demands of high-volume processors in the Pacific Northwest,” noted Tennant. “It’s capable of processing ninety pounds of raw input material per run for well over a ton of weekly material processing.” The PX40 extraction system starts at $189,000.
Inevitably, as regulatory laws are enacted and more states embrace cannabis, the competition for extraction equipment will become fierce. Tennant has a plan for that, too: focusing on cutting edge technology, quality equipment, and exceptional customer service. “By focusing on the success of our clients, we have built an incredibly strong business and brand,” he said.
For more about the compay, visit PrecisionExtraction.com
When it comes to building an efficient, successful, and profitable extraction lab, the three most common mistakes people make are…
1) Lack of planning and preparation.
2) Lack of experience and training in proper, advanced methods of extraction.
3) Lack of attention to regulatory framework and compliance matters.
The words Precision lives by are…
“Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.” —Apple Inc. founder Steve Jobs
“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.” – Anonymous