Vitalis Extraction Technology staff. Photo: Contributed

B.C. business makes a mint on cannabis extraction equipment

Vitalis Extraction Technology first in Canada cannabis industry to earn ASME certification

An Okanagan company is the first in Canada to earn certification from the American Society of Mechanical Engineers for its manufactured cannabis extraction equipment.

Vitalis Extraction Technology is marketing its product and manufacturing base beyond just Canada, to the U.S., South America and Europe.

Since it started up three years ago Vitalis has grown from 20 to 60 employees with plans to consolidate all of its business locations around the city into a 40,000 sq.ft. facility near the Kelowna International Airport at a cost of $10 million.

Vitalis is on track for a 105 per cent increase in sales this business year.

READ MORE: SALES LICENCE FOR KELOWNA CANNABIS PRODUCER

Pete Patterson, co-owner of Vitalis along with partners Joel Sherlock and James Seabrook, said their sudden growth is a reflection of the “wild west” excitement surrounding the legalization of cannabis globally.

Patterson said while examples of legalization are being studied carefully in Colorado, California, Washington and Oregon, he said other countries are watching how Canada benchmarks the industry foundation on a nation-wide level.

From the outset, Patterson said he and his partners surveyed the industry to find a marketing niche for their CO2 extraction product design, which was created by Seabrook, part of the first UBC Okanagan mechanical engineering graduation class.

He said they settled on focusing on large-scale production given the competition on the smaller end. They chose to provide a product that was reliable and would ultimately would pass ASME certification and that was also geared to hash oil extraction.

The extraction market equipment is based on petroleum-based solvents such as butane and propane along with CO2 natural products. These solvents are exposed to extreme temperatures and pressures, they display structures that fluctuate between intermediate states of solid, liquid and gaseousness.

He said the potential for consumer demand has brought retailers to them with demands to process up to one million pounds of product a year.

Patterson said the fast and unstructured growth of the manufacturing equipment supply side has presented some massive additional costs.

He noted Alberta, B.C. and Ontario all have slightly varying regulatory rules for cannabis extraction equipment, something that Vitalis has taken pains to meet with their equipment, and something other competitors do not.

READ ALSO: FUTURE UNCERTAIN FOR VANCOUVER POT SHOPS

“I heard one story of two organizations that purchased equipment out of Europe that cost $600,000 and required a further $300,000 to meet certification standards, and an Ontario licensed producer bought a system that required a further $250,000 in upgrade costs,” he said.

“If you don’t bring it up to specs it becomes nothing more than a paperweight. That’s why certification was important to us, as we wanted to stand behind our product.”

But for all the enthusiasm about legalized marijuana business sales revenue, Patterson acknowledges there are similarities to the potential extolled about Internet product investment in the 1990s which led to many companies going bankrupt after securing stock market investment.

“We want to be mindful of what happened when that bubble burst in the mid-90s so we are looking to off-set or revenue stream reliance on the cannabis industry by looking at product development in other areas such as oil and gas industry and mining,” he said.

READ ALSO: B.C. TO STILL ONLY HAVE ONE STORE SELLING POT WHEN LEGALIZATION ROLLS AROUND

Patterson said while he and Sherlock came here from larger cities and Seabrook opted to remain here after graduating from UBCO, he said they believe Kelowna has become an ideal location to base a company with global sales aspirations.

“We thought about locating to larger cities like a Toronto, Vancouver or Edmonton, partly because land is cheaper and more available. But we continued to gravitate back to being in Kelowna. And we have found since it allows us to recruit expert talent because of the lifestyle here, and on the manufacturing side of equipment components we have ready access to a supply chain to help meet our metal and electronics needs.”



barry.gerding@blackpress.ca

Like us on Facebook and follow us on Twitter

Just Posted

Chemainus Theatre promises next year will be a record-breaker

Mama Mia one of three blockbuster shows theatre brass expect to draw big audiences

Ladysmith Interact club students inspired and inspiring

Ladysmith Secondary School group making a difference in their community

IIO doesn’t recommend charges after motorcyclist death in Mill Bay

An off-duty VicPD officer was involved in the crash

New wind warning for most of Vancouver Island

Forecasters are calling for strong winds up to 90km/h for some areas

Mount Washington opening for winter season this weekend

The resort’s original opening day was delayed due to lack of snow

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

B.C. animation team the ‘heart’ of new ‘Spider-Man: Into the Spider-Verse’

The animators, largely based in Vancouver, ultimately came up with a creative technique that is drawing praise

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

‘I practically begged’: Kootenay woman with breast cancer denied referral to Calgary

Breast cancer patient left to fight disease alone after being denied referral to Calgary

21 detained before Paris protests as police deploy in force

There was a strong police presence outside the central Saint Lazare train station, where police in riot gear checked bags

Media, robotics, Indigenous studies coming to B.C. Grade 12 classrooms in 2019-20

Provincial tests are also being changed for students in Grade 10 to 12, the Education Ministry said

ICBC to apply for 6.3% hike to basic insurance rates

Crown Corporation said it will be submitting its next basic rate application to the British Columbia Utilities Commission Friday

Most Read