CryoMass Signs $10.2M Multi-State License Agreement For Its Cryogenic Trichrome Separation System

CryoMass Technologies Inc. CRYM signed a multi-state license agreement with California-based RedTape Core Partners LLC following the successful market launch of the company’s patented cryogenic Trichrome Separation system.

On December 12th, 2022, CryoMass delivered the company’s first Trichome Separation unit to RedTape’s Coastal Refinement Solutions cannabis extraction and processing center in Monterrey, California, and continued intensive beta testing of its high-volume, continuous throughput, biomass processing system.

According to the company its patented solventless liquid nitrogen processing system enables processors to substantially reduce the number of steps in the pre- and post-extraction processes, which translates into important efficiencies and cost savings of up to 30-40%. The process results in an output that captures practically all the active compounds present in the biomass at the time of harvest.

Under the terms of a multi-state license agreement, RedTape agreed on the terms to license the patented process and deploy 12 Trichome Separation systems for a total upfront investment of $10.2 million payable in installments to CryoMass throughout 2023. CryoMass has agreed to deliver the units to RedTape according to a schedule that extends over 24 months. In addition to the installments, RedTape will pay CryoMass 50% of all net revenue generated by the units over the life of the agreement.

The license agreement grants RedTape the exclusive right, subject to agreed-upon distribution and licensing milestones, to distribute the Trichome Separation units and develop the hemp and cannabis processing and extraction markets with CryoMass in states where RedTape has extensive affiliate business operations and alliances. The five states covered by the agreement are California, New York, New Jersey, Florida and Pennsylvania.

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Photo: Courtesy of CryoMass Technologies Inc.

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