Pressure BioSciences Inc (OTCMKTS:PBIO) announced Thursday that it has won two more customers for its water-soluble CBD manufacturing system, the BaroShear K45.
The BaroShear K45 system is based on the company’s Ultra Sheer Technology platform, which applies high-pressure much greater than 20,000 pounds per square inch to create nano-scale emulsion mixtures of otherwise immiscible fluids — like oils and water — that results in stable homogenized products called nanoemulsions.
Given this ability, the BaroShear K45 system is a powerful next generation nano-emulsification system designed to fix a critical problem facing CBD manufacturers: the poor water solubility of CBD oil.
Investors responded well, sending shares nearly 9.4% higher to $2.10 on the OTC Markets.
In July, Pressure Bio announced the sale of its first BaroShear K45 system to Nano CBD Cosmetics LLC. The two new orders are from Vancouver-based NanoPeak Solutions Inc and a privately-owned company in Las Vegas, Nevada.
In a statement, NanoPeak Solutions president Bruce Leitch said: “We fully appreciate both the challenges and the significant emerging market opportunity of having the ability to deliver CBD in a form that allows for greater absorption and enhanced bioavailability.”
He pointed out that multiple studies have indicated that CBD should be processed using nanoemulsion technology in order to be "truly water soluble and have shelf stability."
“NanoPeak has spent significant time reviewing various nanoemulsification platforms and the company has great confidence that the K45 system will be instrumental in NanoPeak having the ability to offer the highest quality ingredients to be utilized in CBD products,” said Leitch.
The new form of CBD oil created with the help of the BaroShear K45 system disperses instantly, thus making it easier for the oil to be added to sodas and seltzers, vitamin-infused sports drinks and beer.
Pressure BioSciences, based in South Easton, Massachusetts, said the system also improves the effectiveness of CBD dosing as well as absorption.
The current absorption rate for orally consumed CBD is typically below 10%, but the company said the BaroShear K45 system could deliver up to a 90% rate.
Long-term collaboration with NanoPeak
Pressure BioSciences CEO Richard Schumacher said the company will have a long-term collaboration with NanoPeak.
“The companies have agreed that payment for the BaroShear K45 will be made to Pressure Bio in a combination of cash and stock in NanoPeak Solutions, binding the companies in a way that will go well beyond the typical customer-vendor relationship,” Schumacher said in the statement.
“NanoPeak intends to engage with research institutions in furthering the shared technology platform knowledge base and undertaking clinical trials along with new product development. We look forward to working closely with NanoPeak as they grow into a strong manufacturing partner and manufacturer of CBD infused products.”
Shaping up into major revenue earner
Pressure Bio also pointed out that about a dozen processing systems in its initial manufacturing run would be sold by September 30. The BaroShear K45 system has a list price of $195,000.
Schumacher said the company expects demand for the BaroShear K45 system to drive revenue as the CBD market expands to $20 billion by 2024.
“We have already begun to pre-sell limited quantities of the BaroShear K45. Units sold over the coming weeks will be delivered and installed in early 2020. We believe that such sales will have a significant impact on 2020 total revenue, potentially resulting in more than twice the total revenue of 2019,” Schumacher added.
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