For Hemp CBD Investors and Funding Groups: Please read our strategy and methodology on how to capitalize extraction systems, and grow vertically into this botanical oils market. PDF: 20190129-infinity-supercritical-hemp-cbd-investor-strategy
Investor Strategy and Methodology: How do I invest in the hemp CBD market ?
How To Build A Vertically Integrated Hemp CBD Oil Business:
1. Establish good rapport with farmers and hemp flower suppliers: Growing a pesticide free and legal hemp (lower than .3% THC content) supply is critical to a solid supply. Offer to pre-buy some of their product at a set price. Buy up certified and analyzed product from last years harvest (at a discount).
2. Buy your own hemp flower and oil analyzing machine: Don’t trust what others tell you, analyze the product yourself, and re-verify quality. Have a third party also analyze so you can compare and verify. Analyze your competition and see if they’re actually selling what they claim (the results may surprise you). Post all results on your web page blog. Transparency is critical to establishing a good reputation. Trust and verify.
3. Buy 1-10 of the Infinity Supercritical 10L CO2 extractors: Each machine can extract $5,000-$10,000 per day (amounts vary according to hemp flower buy price, extract sell price, etc.). Number up machines as capacity increases until you reach 10 machines, then buy a larger SDR1200 which can process up to 2,400 pounds of hemp flower per day. The CO2 extracts can be build immediately (1-2 weeks) which allows you to get started now. One person can run up to 10 machines if stagger-started.
4. Buy a SDR1200 for Water Eco Extraction of Hemp: As your profits grow, and processing capacity increases, buy a larger continuous feed hemp flower oil extractor. These larger machines take 6-12 months to build and test, so plan ahead. If you start with the CO2 extractors, those can be build on-demand and get you processing right away.
5. Dedicated Sales Person: Have at least one person dedicated to selling crude oil, bottled full spectrum hemp oil online, bottled full spectrum hemp oil to local retailers (and nationwide). Also have them determine CBD isolate (crystal) sales, to analyze whether or not a post processing system will be needed at a future date.
6. Start with Full Spectrum Hemp CBD Oil Extraction: The highest buy prices (and demand) is now with full spectrum hemp CBD oil. It is the fastest and easiest to produce (it’s the crude oil extract right out of the machine). To bottle it, mix with a carrier oil such as coconut oil. One bottle of about 30 ml of coconut oil will have 500 mg, 1,000 mg (1 gram), or 2,000 mg (2 gram) of hemp cbd oil in it. CO2 oil extract is commanding a price up to twice that of ethanol extraction, since it’s a better quality extraction.
7. Start with Extraction, Not Growing: The most profit in the hemp market is extracting and selling the oil. There are thousands of pounds of hemp flowers in warehouses in Oregon, Colorado, Wisconsin, and other states.
8. Do not Start with CBD Isolate (Crystal): The most profit in the hemp market is extracting and selling the hemp full spectrum CBD oil. The crystal has a solid buying market, but at only $6.50 a gram versus $10-40 a gram for the oil (wholesale) and $90-140 a gram (retail). Start with the biggest profit ratio, and then use the profits to purchase post-processing equipment to make CBD isolate (crystal).
9. Coordinate Farmers: Coordinate strategies with farmers, so that they know they have a hemp flower buyer at harvest time. Also educate them on how to properly dry hemp flower, and package properly with commercial vacuum bag storage (similar to hops drying, storage, and processing).
10. Time is of the Essence: If you don’t do something prior to June 2019, then just sit back and watch others ride the boom. Like we saw in Denver during the initial cannabis boom, the reaction time needs to be realized quickly. If you can’t move to extract profits quickly, then the best idea is to just stay out of the opportunity.
The above is a good strategy to start. While your opportunity may be different, that will give you a good roadmap on beginning the conversation. Please feel free to call Infinity Supercritical and discuss your options and potential extraction facility.
Greg Giese / Owner