Since Extracta incorporated in August, a lot has happened, they have progressed in many areas.
Raw Material Inputs
Raw Material sources have been re-examined, and many farms and fruit processors visited. In each case, significant quantities of waste fruit are available, either for free or for a nominal cost.
They have supply lines for apple pulp, cores and skin waste.
They have a supply line for cherries – more work to do and may involve a deal with a producer and some capital. No decisions have been made.
The processes required for the plant to handle grape marc is finalised and documented, as has the process for sugarcane although one sub process is being re-tested (to reduce costs). These processes will handle almost all of the other input materials except pectin production.
The pectin process is established but not finalised, so the equipment has not yet been selected.
The plant design for stage 1 products (grape marc and sugarcane) has been completed and equipment identified. The equipment being used has been identified and we are in discussions to purchase.
They are evaluating leasing options for some plant items for several reasons, including flexibility and to reduce cashflow demands.
They are establishing partnerships with two organisations. One has agreed in principle to site the plant and assist with its operation (labour, services, power, QC facilities, and a source of grape marc). The other has a keen interest in supplying raw material inputs. More details post final signing of documents.
They are also in the process of partnering with an experienced regional R&D company with extensive experience with the input materials.
MediKane, the first customer, now has an agreement in principle to supply to a new customer for a new and different market, using their patented products for diabetes, inflammation management and digestive health. It is expected to increase the demand for Extracta products by 50% or more – more details when the deal is signed.
Further investment and Share Price
To date, a Extracta has commitments of $200,000 from shareholders with a target to raise $450,000 this calendar year – total tranche 1 amount remains at $750,000.
This amount will enable us to complete the plant for stage 1 product supply and thereby commence sale and cashflow.
The current share price is $0.50 per share – all shares are ordinary shares.
About Extracta Pty Ltd
Extracta Pty Ltd is a non-listed Australian entity that extracts and reclaims valuable nutrients from farming waste.
Input costs are low as much of the various crops are lost to food retailers or production and wasted.
Extracta converts the unused fruit and vegetables, or processing waste into sale-able high value ingredients for existing markets.
The business model is:
Source: Farm and agricultural waste
Process: Ingredients – both commodity, and higher purity grades
Sell: To global commodity markets; food and cosmetic manufacturers
Target markets are the food industry, the cosmetic industry and ultimately the pharmaceutical industry that use these products as ingredients.
Selling the products both in Australia and internationally will initially be via an existing network of sales agents who currently sell wholesale products. As Extracta expands it is planned to develop higher value products that will be sold as branded products.
The markets for key products are global – large enough that a small market penetration provides significant revenue streams that can be expanded. Ingredients that are extracted from grape skins and seeds left over by winery’s following crushing the grapes are the first to be produced.