I also think that ethanol and distillate-based products will hold market share just like the Budweiser and Kendall Jacksons of the world. I think that hydrocarbon and water hashes will continue to play a substantial role. If you look at similar industries, I could compare it to craft beer or winemaking. Tennant: I think that cannabis will remain to be very artisanal because of the uniqueness of the plant. Green: What kinds of products are you seeing the consumer gravitate towards? We’re continuing to expand our product portfolio into other niches so that if you’re building a cannabis facility, you only need to come to one company and the process is as simple as possible. We want Agrify to become the dominant and fastest growing player in the cannabis industry for infrastructural solutions, whether that’s horticulture or extraction. Tennant: Going forward we want to provide that end-to-end one-stop shop infrastructural solution for any cannabis products company. Where are you focusing the business going forward? Green: You’ve got several areas of focus at Precision ranging from ethanol extraction, distillation, and butane hash oil (BHO) extraction. We were seeking to partner with t a bigger player in the industry with more resources that would help us to scale what we were trying to do, and Agrify was the perfect fit. Getting to the point where you can exit the businesses, it’s a long road, and our business is very niche. They have the horticultural aspect, an excellent public vehicle, and plenty of cash on the balance sheet to continue to scale the business and acquire additional constituents within the cannabis infrastructure. Tennant: The strategic rationale is that we are providing an end-to-end infrastructure solution.
Green: So, big news recently with the acquisition, congratulations on that! Tell me about Agrify and why a deal with Agrify made sense to you.
We worked out individual circumstances regarding how I was going to leave those businesses and focus full time at Precision. My former partners took over the businesses, like the grows.
When we launched Precision and were met with such success in just the first 90 days, I knew that I had to abandon everything else I was doing to focus on this. As I started to see the extraction niche expand, I really started to put more time and resources into it. Nick Tennant, SVP of Innovation at Precision Extraction Solutions Green: Tell me about that transition from a cannabis products company to an equipment manufacturer. We sold Precision to Agrify in October of this year. Since then, we grew the company up to 60 employees and substantial amounts of revenue. We launched Precision in 2014 and we basically shot out of a cannon, doing a million dollars in sales in our first 90 days. I looked at technology at the time and it was very primitive, so we made a shift to focusing on concentrates. Concentrates didn’t really exist in a meaningful way the products definitely were there, but the technology wasn’t. The subsequent five years from that law getting passed, up to 2013, I did pretty much everything in terms of commercial cannabis – cultivation, retail, edible manufacturing, you name it. Around 2008, Michigan passed their cannabis law, and we were one of the first businesses to get licensed. I had family in Colorado and California who I started to interface with around 2006. Nick Tennant: I’ve been in cannabis about 17 years now. Prior to Precision, Nick was involved in a vertically integrated cannabis business in Michigan where he gained experience in cultivation, extraction and retail.Īaron Green: How did you get involved in the cannabis industry? Nick founded Precision after seeing a need for quality equipment in concentrate processing.
We interviewed Nick Tennant, SVP of Innovation at Precision, now a division of Agrify. The move positions Agrify to offer end-to-end infrastructure solutions for cannabis cultivators and processors. In October 2021, Agrify (NASDAQ: AGFY) purchased Precision in a $50M cash and stock deal. Precision Extraction Solutions (Precision) was founded in 2014 to provide equipment and services to cannabis and hemp processors. Formed by extracting cannabis using a variety of methods including ethanol, butane hash oil and CO 2, concentrates find their way into consumer packaged goods as ingredients for infused products or as stand-alone products such as resins, rosins, distillates and hash. Cannabis and hemp derived concentrates are a rapidly growing product category.