WOODBURN, Ore.--(BUSINESS WIRE)--Socati – a pioneer in the development of hemp genetics, cannabinoid science, and disruptive extraction and purification technology – today announced it has closed a second round of funding from private investors. The capital will be used to bring operations to manufacturing scale, securing Socati’s place as a primary high-volume processor of THC-free full-spectrum hemp.
“We are excited to announce this successful newest round of funding as it shows the intense interest investors have in the space and the growth potential of the market,” said Josh Epstein, CEO at Socati. “This capital gives us the ability to bring ourselves up to scale and provide leading consumer goods companies with a reliable, superior product that meets the growing demand for hemp extracts, including CBD and other cannabinoids, in consumer products.”
Socati initially raised $9 million in seed funding, followed by its most recent $33 million round of funding, announced today. Investors in the second round include:
- Lorne Abony, Founder and CEO of Mood Media, Fun Technologies, Nuuvera and Petopia.com.
- Jim Mellon, European billionaire biotech investor and chairman of both Juvenescence AI Limited and The Burnbrae Group.
- JJR Private Capital Inc., a private capital firm that specializes in financing and advising companies in the financial services, healthcare and consumer goods industries.
Following the passage of the U.S. Farm Bill, hemp and its derivatives, extracts and cannabinoids, including hemp CBD, are no longer classified as Schedule I substances and are now federally legal. The market for products containing CBD was estimated to be $591 million in 2018 and projected to increase nearly 40 times to $22 billion by 2022, according to Brightfield Group research. Hemp CBD is also in line with the longer-term health and wellness trend that continues to drive consumer demand.
“The demand for THC-free full spectrum CBD is increasing exponentially,” continued Epstein. “It’s very difficult to remove THC while leaving the full spectrum of other naturally occurring cannabinoids. We’re poised to be a leading supplier to meet the high standards of top consumer brands as they incorporate CBD into their products.”
Socati is well positioned to capitalize on this demand to drive growth by offering a top-quality and consistent product through its proprietary technology that extracts the CBD and other cannabinoids from hemp to ensure a full-spectrum ingredient that supports maximum synergies between cannabinoids, commonly known as the “entourage effect.” In addition, the company’s proprietary varietals produce an ultra-high CBD-rich crop and enables Socati to provide a consistent supply of CBD-rich hemp.
About Socati
Headquartered in Woodburn, Oregon, Socati is the leading processor of THC-free full-spectrum hemp. The company provides a top-quality and consistent product for a market projected to reach $22 billion by 2022. Leveraging investments in new technologies, Socati engages in large scale manufacturing and has logistics in place to process increasing amounts of hemp biomass to meet demand. With a THC-free full spectrum product, Socati can reach into large, international CPG companies that are seeking high-quality raw materials. To learn more about Socati, visit www.socati.com.
This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements convey our current expectations or forecasts of future events. All statements contained in this press release other than statements of historical fact are forward-looking statements. Forward-looking statements include statements regarding our business strategy, plans and objectives of management for future operations. The words "may," "continue," "estimate," "intend," "plan," "will," "believe," "project," "expect," "seek," "anticipate," "should," "could," "would," "potential," or the negative of those terms and similar expressions may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
