CryoMass Technologies announced the signing of a multi-state license agreement with California-based RedTape Core following the successful market launch of its 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.
CryoMass 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%.
Teams at both RedTape and CryoMass have been busy focusing on identifying and testing the best post-processing procedures to get the separated trichomes to a final product more efficiently and the results we are seeing are extremely encouraging.
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.