(MENAFN- GlobeNewsWire - Nasdaq) DENVER, July 07, 2023 (GLOBE NEWSWIRE) -- CryoMass Technologies Inc. (the " Company " or " CryoMass ") (OTCQB: CRYM ) a leading provider of innovative botanical refinement solutions, is excited to announce the successful transition from beta testing to commercial-level processing of its Trichome Separation Beta unit, also known as "CryoSift SeparatorTM".
Since acquiring all intellectual property from CryoCann USA Corp, CryoMass has achieved remarkable strides in advancing and protecting its proprietary technology. Prior to the CryoCann asset acquisition, the technology had undergone six years of intensive research and development, but it had not been validated at an industrial scale. CryoMass has now achieved a major milestone by successfully designing and constructing an industrial-scale Beta system, which has undergone rigorous testing across multiple phases. This comprehensive journey, starting from the initial industrial design to the completion and testing of the first prototype, has laid a solid foundation for CryoMass to embark on commercial-level processing. This achievement marks a significant leap forward for the Company.
To view the accompanying CryoSift SeparatorTM video please visit:
Beta validation and testing
Following the completion of the CryoSift SeparatorTM Beta unit's build, CryoMass initially installed the unit at RedTape Core Partners LLC's ("RedTape") licensed Coastal Refinement Solutions ("Coastal"), California, processing center in mid-December, pursuant to a multi-state licensing agreement that we previously announced (the "RedTape Agreement"). CryoMass, in collaboration with Coastal's extraction team, conducted trial runs on the Beta unit and identified areas for optimization to enhance performance. After completing the necessary modifications, a second series of biomass test runs began.
During the second series of runs, we focussed on evaluating the system's reliability, performance, and safety, established optimal cleaning and maintenance procedures, and determined the final design for the first serialized CryoSift SeparatorTM build. We also captured efficiency data and started to establish Standard Operating Procedures (SOPs) for processing CryoSift (trichomes separated using the Company's proprietary method) in either a hydrocarbon-based extraction system or for producing solventless extracts. Throughout this phase, the CryoMass team closely monitored stress points, and performed necessary maintenance and adjustments during periods of downtime.
An important step in the proof-of-concept phase for CryoMass is demonstrating that our system and process can produce both solvent-based or solventless extracts faster and at a lesser cost than traditional methods at equal or better standards of quality. For example, our initial observations show that hydrocarbon-based extracts from CryoSift have a higher terpene count and more defined aromas than the extracts made from whole flower biomass.
To view the accompanying CryoSift being discharged from the CryoMass system video please visit:
Live resin hydrocarbon-based (solvent) extract from CryoSift.
Live rosin (solventless) extract from CryoSift.
Thorough beta testing is crucial for the development and understanding of any new technology to ensure the production of a robust commercially viable product. The Company prioritized a thorough and responsible approach to establish a solid foundation for future system deployments. The final design for the first serial production system has been achieved through collaboration with the manufacturer, and the company is now in the final phase of build cost analysis.
Revenue Generation Phase and Market Expansion
The RedTape Agreement stipulated that the installment payment schedule would commence upon the CryoMass Beta unit being ready for commercial-level processing. With this phase now underway, CryoMass expects to receive scheduled payments from RedTape over the next 12 months. Additionally, we anticipate a deployment schedule for future systems to be generated pursuant to the agreement.
CryoMass has been diligently planning the manufacturing and deployment of additional units in other key markets beyond the RedTape Agreement. The company is engaged in advanced discussions with several companies in three states outside of California, each presenting significant revenue potential. The focus is on cementing relationships with established companies that possess substantial cultivation and processing footprints, aiming to understand their specific needs and areas where CryoMass can provide value to their operations.
Simultaneously, CryoMass, in partnership with operational partner Coastal has initiated events to showcase the Beta system to industry participants from various regions of the United States. On June 14th, 2023, our CEO Christian Noël was in Monterey, California to participate in leading one of these showcasing events which brought together cultivators and processors from California and other states to witness the system in action.
To view the accompanying CryoSift SeparatorTM in operation during June 14th, 2023, showcasing event video please visit:
Attendees of June 14th, 2023, showcasing event.
Priyesh Sharma, CryoMass Senior Director of Engineering and R&D doing a training session.
For California-based cultivators, CryoMass operating partner Coastal has taken a significant step forward to initiate the processing of introductory fee batch runs of biomass. This crucial first step serves to showcase the exceptional results and advantages of our cutting-edge technology. In this manner, we aim to establish strong, long-term relationships with cultivators and to pave the way for future contractual processing agreements that involve larger quantities of biomass anticipated to be harvested in the fall.
As the fall harvest season approaches in California, many farmers are burdened with substantial quantities of frozen biomass from the previous year's harvest. This surplus biomass remains unsold, occupying limited and expensive freezer space. CryoMass provides the ideal solution for reducing the volume of this biomass before the next harvest arrives. By collaborating with a targeted group of qualified cultivators now, CryoMass strategically lays the groundwork for seamless cooperation during the upcoming fall harvest.
Through our innovative biomass reduction process, CryoMass enables cultivators to handle their harvested biomass with unprecedented efficiency. By streamlining processes, we reduce numerous layers of cost, encompassing labor, cold storage, and transportation expenses. Consequently, cultivators experience an increase in the value of their biomass, as it transforms into a more refined product, which amplifies its monetization potential and reduces environmental impact.
While the testing and optimization phase took longer than anticipated, CryoMass is now prepared to enter the revenue generation phase with its Beta unit in California. The company plans to deploy at least two additional units before the year's end, catering to the strong interest from cannabis and hemp cultivators and processors eager to integrate this groundbreaking technology into their operations.
The common stock of CryoMass Technologies Inc. trades on the OTC QB market under the symbol CRYM .
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