Khrysos Industries Enters Into a 5 Year Supply Contract to Purchase Hemp Plant Biomass for Extraction Processing and Post Production of Hemp-Derived Products
September 6, 2019
Khrysos Industries, Inc., a wholly-owned subsidiary of Youngevity International, Inc., a multi-channel lifestyle company operating in three distinct business segments, announced that it has entered into a 5 year Supply Contract with DJB Industries Inc. to provide extraction services and end-to-end processing to produce isolate, water-soluble isolate, distillate, and water-soluble distillate hemp-derived products.
Extraction and post-processing fulfillment and revenues are anticipated to begin in the first quarter of 2020, with revenues forecasted in excess of $170 million through 2025 based on current market conditions and assuming, among other things, the ability to secure buyers for the produced product, and the supplier’s ability to supply the biomass for extraction and processing.
“We are excited to add this new long-term contract to our portfolio on the extraction side of our business. We continue to strategically target long-term relationships that will ensure our access to hemp-derived crude oil. We strongly believe that partnerships such as this provide the necessary long-term crude oil supply that is essential for Khrysos to expand its position within the post-processing area of our business,” said Dwayne Dundore Ph.D., President of Khrysos.
“Khrysos Industries has recently secured and announced $30 million dollars of post-processing contracts for fulfillment over the next year so it was essential that we acquired a consistent supply of quality crude oil to fulfill these contracts. We now have extraction contracts in place that will allow us the potential of producing post-processing material that has the revenue potential for $46 million dollars of isolate, distillate, water-soluble products, and other post-processed materials annually. Our goal is to have extraction supply contracts in place by the end of 2019 that will provide us the ability to produce $100 million dollars of revenue opportunity for 2020 based on current market conditions within the post-processing end of the business,” said Dave Briskie, President and CFO of YGYI, about its wholly-owned subsidiary Khrysos Industries. “This supply agreement with DJB provides excellent long-term crude oil supply and allows us to enter into additional supply contracts for our post-processing products as well as provide us the necessary raw material necessary to produce products for our own brands utilizing these hemp-derived extracts.”