Socati is pioneering the way in the creation of high-quality, safe hemp genetics, cannabinoid science and supply chain technology. Recently, the company announced they would be finishing up their second round of private investor funding. The money they raise from their investors is earmarked to be used for scaling, manufacturing and ramping up Socati’s ability to become the non-detectable THC, and water-soluble CBD high-volume processor for full-spectrum hemp.
Passage Of U.S. Farming Bill
When the Farm Bill was passed, it changed the way certain hemp derivatives were classified. Hemp extracts, water-soluble CBD and cannabinoids were not legal at the time. In 2018, the market for CBD products, that contain non-detectable THC, was estimated to be more than $590 million. By 2022, the market is supposed to be worth more than $22 billion. This is nearly 40 times higher than in 2018. In line with other health and long-term wellness trends, hemp, CBD, and other cannabinoids, such as CBG, CBN, and CBC, are being driven by consumer demand.
The demand for full spectrum CBD that contains non-detectable THC is increasing significantly. It is not easy to remove THC from cannabinoids while leaving the full spectrum of other cannabinoids that are naturally occurring in the plants. Because of this, Socati is ready to poise itself as the leader for CBD products.
The company has already developed this cutting-edge technology and is in a position to capitalize on this growing consumer demand. Socati is attracting and retaining consumers because they consistently offer high quality CBD products. Socati’s proprietary technology can extract the CBD and additional cannabinoids from the hemp and remove THC to non-detectable levels. This process allows the broad-spectrum of ingredients to support the highest levels of synergies between each cannabinoid. This is called the “entourage effect.”
Socati’s patented chromatographic-based technology can customize the profiles of cannabinoids for hemp-derived ingredients. Based on the abilities of their new tech, the company has released a list of some of the ingredients they have been able to extract. Each ingredient will offer cannabinoids with a broad-spectrum and all will include at least 80% CBD and 2% CBG (cannabinoid cannabigerol).
Cannabinoids that are hemp-derived using the Socati’s new process are already showing promise with consumer demand. There is additional potential for the products to help customers in other ways as well. All of the ingredients produced will meet strict standards of purity and quality, which is extremely crucial to manufacturers who are partnering with supply chain ingredient providers.
According to the CEO of Socati, Josh Epstein, the entire team is eager to begin using the new round of investor funding to grow the business and expand to new product innovation and markets. The capital will allow Socati to scale products and offer their consumers a greater variety of in-demand reliable and superior products. Socati had initially raised seed funding that totaled a little more than $9 million, and more recently their fundraising brought in more than $33 million.
Investors from the second round include:
•Lorne Abony – Abony is the CEO and founder of Mood Media, Nuuvera, Fun Technologies and Petopia.com.
•Jim Mellon – Mellon is a billionaire biotech investor from Europe and a chairman for both The Burnbrae Group and the Juvenescence AI Limited.
•JJR Private Capital Inc. – JJR is a private capital firm that advises top companies in the healthcare, financial services and consumer goods industries.
About The Company
Socati headquarters is located in Austin, Texas. Socati is a leader in the processing broad-spectrum hemp, resulting in non-detectable THC CBD and cannabinoid-focused products, in both oil and water soluble ingredients. With their products, Socati is poised to reach innumerable international CPG organizations looking for quality raw products and materials. Socati can successfully leverage their investments based on the creation of new technologies that can extract cannabinoid derivatives. They use these derivatives to market to consumers looking for customization.