With extracted cannabis-derived products making up about 50 percent of all cannabis products sold, extraction equipment is in high demand. Here to tell us more is Nick Tennant of Precision Extraction.
Learn more at https://precisionextraction.com
[00:52] An inside look at Precision Extraction, the industry leader in cannabis extraction equipment, C1D1 lab planning, and extraction training
[1:40] Nick’s background in cannabis and what led him to start Precision Extraction
[4:28] Biomass and why it’s a critical component of cannabis extraction
[9:04] How Precision Extraction’s diverse line of equipment is designed to accommodate different production needs
[13:14] Shifting consumer trends in cannabis-derived products and how Precision Extraction’s clients are able to adapt more quickly
[22:34] Why Precision Extraction freezes biomass before the extraction process
[25:09] The most common mistakes Nick sees new business owners make when trying to develop cannabis-derived products
[27:32] How Precision Extraction’s premade C1D1 lab containers known as “Extraction Pods” are saving businesses time and money
[29:35] How Nick sees the cannabis extraction market evolving over the next 3-5 years
Matthew Kind: Hi, I'm Matthew Kind. Every Monday, look for a fresh new episode where I'll take you behind the scenes and interview the insiders that are shaping the rapidly evolving cannabis industry. Learn more at cannainsider.com. That's C-A-N-N-A-insider dot com. Now, here's your program. With extracted cannabis derive products making up about 50% of cannabis products sold, cannabis extraction equipment is in high demand. Here to tell us more about the state of cannabis extraction is Nick Tennant, CTO of Precision Extraction. Nick, welcome to CannaInsider.
Nick Tennant: Thanks for having me. Pleasure to be here.
Matthew: Give us a sense of geography. Where are you in the world today?
Nick: Our headquarters is outside of Detroit Michigan, in a suburb called Troy and that's where I'm at.
Matthew: What is Precision Extraction on a high level?
Nick: Precision Extraction is the end-to-end solutions provider for anybody that's going to create any sort of extracted product. When we say end-to-end, we mean you can bring basically a piece of dirt to us, and we can outfit you with not only all of the engineering, all of the design, but we have partnered construction firms. Obviously, all of the equipment, the equipment setting, and integration of that equipment, the design of the lab in terms of workflow and efficiencies. Then ultimately, training the staff, getting the SOPs implemented, and assisting the client with bringing online a production facility that does exactly what they want.
Matthew: Nick, can you share a bit about your background and journey, and how you got into the cannabis space and started Precision Extraction?
Nick: Yes, absolutely. I've been in cannabis now for about 17 years. I was in it since 2006. I had some family that was in California and Colorado. I began traveling and meeting with them, and looking at the space. I've always been an entrepreneur. In 2008, Michigan passed their law for medical use. I was the 40th person to get licensed here in Michigan under medical use. We did a lot of different niches for the following five years after Michigan passed their law.
We've operated dispensaries, we've done a commercial grow, we've done analytical laboratory. Pretty much everything under the sun, you name it, I've operated in the space. About seven or eight years ago really started to saw the trend go towards extraction. Looked at the technology at the time, it was very primitive. Really tried to engineer a better mousetrap, so I taught myself how to engineer pressure vessels, and manufacture, and develop a global supply chain, so did all that. Went to market. First 90 days, did about a million dollars in sales, and the rest is history.
Now, Precision is the largest extraction equipment solutions provider in the world. We operate in-- Over 20 different countries, we've got installation, so we're a global company. Really have a footprint in terms of the best clients in the world meaning if you've heard about of a publicly-traded company, or a blue-chip cannabis MSO, they're likely our client.
Matthew: I'm not playing around with pressure vessels and the side here. You obviously have a background in like-- What is this metal fabrication? What do we even call this? I don't know.
Nick: Yes, so pressure vessel fabrication would be the proper terminology. It's regulated by something called the American Society of Mechanical Engineers, ASME. Similar to basically nuclear submarines, and pressure vessels for boilers, and things like that because you are using pressurized components to do what we're doing here in many instances. Yes, it's a combination of technology and manufacturing.
We always say that we're ultimately in the end. We're a cannabis technology company because the form of the equipment always follows the methodology and the process. What are we trying to do from a technological standpoint? How are we trying to isolate these high-value molecules from the cannabis plant? How can we do that in the most efficient, effective manner?
Matthew: One thing I want to talk about is biomass because it's a key variable that you hear tossed around a lot when you're discussing extraction. Can you just talk about why biomass is one of the critical variables when you're talking about extraction and what it means to you?
Nick: Yes. To be more politically correct, I'll say it's poop in, poop out. The term in the industry. The biomass is very important. When you think about what you're trying to do. The biomass is creating these molecules THC, CBD, the other cannabinoids, the terpenoids, and flavonoids, and things that you're trying to extract. Ultimately, you're trying to get the native essence of that plant.
Anything that's going to disturb that native essence is going to effect your ability to create a very good extraction or a very good extracted product. Some of these things can be environmental issues. Ultimately, all of these molecules, the cannabinoids and terpenes, and so forth, they can all oxidize. The more oxidation, the more degradation they have, the biomass has been sitting if it's been overdried if it's been exposed in too much heat. These are all things that degrade the natural essence of a plant.
Therefore, we need to be super conscious about how we're handling biomass. Also, super conscious about our practices for harvesting and preparing the biomass in order to prepare for the extraction.
Matthew: Now, some people consider different things part of biomass like the stems and so forth. What do you consider part of biomass and not part of biomass? At least in the cannabis industry.
Nick: Technically, biomass is a blanket term. It can be used interchangeably through many industries. It really depends. Typically, what we try to isolate our biomass to is the cannabinoid-rich areas of the plant. The cannabinoid-rich areas of the plant are the flowers, of course, and what we call the sugar leaves. The leaves that are directly adjacent or part of the flowers have a pretty high concentration of cannabinoids.
The rest of the plant really doesn't have a high concentration of cannabinoids. When we talk about the roots [unintelligible [00:06:45] the stems, what we call the fan leaves, those are kind of like the solar panels of the plant for it to photosynthesize. Generally, most of that is discarded. Now, in instances when there's high volume, for example, if there's acreage of cannabis or acreage of hemp, some of that stuff becomes combined harvested. The combine actually just mills everything together, and that leads to a much lower quality of biomass.
It leads to a much lower concentration of cannabinoids in the actual material. Ultimately, it leads to more work in extraction and generally a less pure-- Less artisanal product. To the prior point, the preparation in harvest, in how it's grown, how it's stored, how it's prepared in order to go into the extraction device is very important.
Matthew: There's really either cost on the front end or the back end, whether if you're using a combine to cut down on cost. On the back end, you don't have that surgical precision to pick out the parts of the plant that you want to gather.
Nick: Yes, that's exactly right. There's a lot of different ways to skin that cat whether you're using mechanical. Large scale people use just a large workforce. It's very laborious. We've got a technology that we've implemented which is a-- It's called a CryoCan system. That system actually uses liquid nitrogen in order to flash freeze and sublimate the water out of a freshly harvested plant. It also uses an agitation system to separate those cannabinoids and purify those cannabinoids into what we call a sift.
A sift is just really a purified pile of cannabinoids. It looks like sand almost. Where the trichome heads, they look like little mushroom heads coming off of the buds and sugar leaves of the plant. Plus trichome heads are snapped off due to low temperature and separated, which is a very, very efficient way to harvest, so that technology. Again, when I say that ultimately Precision is a technology company, these are the types of examples that can be had. The way that we think about how to isolate these molecules really drives the future of the innovation of the company.
Matthew: Can you give us a sense of how much cannabis biomass your extraction equipment can process in an hour? It seems like that's one of the first questions that comes up like, "If we're trying to fit into one of Precision Extraction's machines extraction equipment, then we need to know how much product you have going in and how much oil you want out." Give us an idea of your line up on a small end and then in a high end.
Nick: Yes, absolutely. Our smallest equipment starts about five pounds a run. A run typically taking 30 to 40 minutes. We like to say conservatively, it's around 40 pounds a day. We're not catering to home users. That's our lowest size of our commercial equipment. Just to give you an idea of scope on that. If somebody's using a hydrocarbon piece of equipment to make artisanal products, and they're processing 40 pounds a shift in an eight hour period, that could be something that's potentially $7 to $12 million a year revenue business.
Now, our equipment goes all the way up to 10,000 pounds+ a day in our industrial line of extractors which is our KPD series. That KPD series is, again, that's more think about combine, think about high volume, lower quality oil that needs to be refined and distilled, and so forth. Any range in between there, we can accommodate. Typically, at every processing throughput, Precision has a solution. Depending on what product you're going to make, our team and our specialists can absolutely consult and advise you on what combination of equipment's going to be most effective for your potential production and business plan.
Matthew: I noticed that there's this lingo in the industry. It makes sense just how we use horsepower for cars. We still use some legacy ideology with eight-hour shifts because that's how humans work. Are some of the machines you have now going to transcend this idea of working in eight-hour shifts where you can put all the biomass in one area and it gets processed for you over a greater or shorter period than eight hours?
Nick: Yes, absolutely. All of the machines are capable of running 24 hours. Let's start by putting context around that. It really depends on when you cross the inflection point. Really, at around 2,000 pounds a day, you start crossing an inflection point where it doesn't make sense to do batch processing anymore because of the overly burdensome labor costs.
What that translates to is more of an automated feed and automated discharge system like you see with our KPD series of extractors. These are typical to either large THC players that are consolidated and have a massive amount of greenhouse space or to the CBD players because the CBD players are really extracting a large amount of acreage.
With that in mind, you really can process 24 hours a day absolutely. With anything in a batch form, you have to have the human power really robust in order to meet those high throughput-processing demands in that short period of time with minimal downtime and with the automated system. Obviously, the machines do a lot more work for you. Extraction really is an art. It really is artisanal. You can think of it almost like cooking or making any artisanal product. Cannabis very much is an artisanal product itself. You can think of that like microbrews, you can think of that like artisanal wines.
A lot of this stuff, even as the industry grows, there's going to be a lot of small-batch production, and we see that obviously in our business. 2,000 pounds a day is a lot of biomass. Then, you can still do that on batch production. We call that high-volume batch production. It just gives an overview of the trend of the industry and throughputs and automation versus batch equipment and time frames for processing.
Matthew: You get the inside scoop from all these companies that are doing extraction for their business. They really tell you the truth because they need your solutions. They want to tell you exactly what they're doing. Without naming names, can you just give us an idea of what the trends are in terms of what manufacturers are making, the most popular products that they're using the extraction equipment for?
Nick: Yes, absolutely. A good way to really look at this too is what are the consumer trends? I think we talked about this a little bit before. Every state has its own micro-demographic, micro-economy, and micro-consumer trends. The patterns of production are a little bit different from state to state. One state may be more dominant on vape pens. One state may be more dominant on edibles that might be a particular sub-segment like gummies. We really see it all over the place. It's really a result of the level of maturity in the market. As consumers become more educated, they realize that there's a multitude of different ways to ingest cannabinoids.
As they understand that, they'll explore more products and gravitate towards perhaps newer, more innovative products. Most of those products, of course, come from extraction. What we see is we see a shift generally from flower consumption to extract consumption, the more mature a market gets. In terms of our clients, they have a different strategy on a state-by-state basis. Typically, what we're building is a very diversified lab where that lab has the capability to do pretty much every product whether that's distillate, whether that's isolate, vape pens, live resin, shatter, butter, wax, sauce, whether that's high-volume crude for resale and separate processing or Rick Simpson Oil.
Typically, what we see is these labs being extremely diverse and the ability to produce these products because the consumer trends do shift. What's hot today is not necessarily hot tomorrow. The market is extremely dynamic in that regard.
Matthew: I'm sure you get a lot of questions about whether hydrocarbon extraction, for example, using butane or propane is dangerous. When people ask that, how do you respond?
Nick: It's funny because a lot of competitors, they tend to mark it off of fear and things like that, especially the CO2 guys. I always ask myself a question, "If somebody's negative-selling, what does that say about their company, or what does that say about their technology?" When we think about hydrocarbon, hydrocarbon really is a technology that's been around for a very long time. On a day-to-day basis, you can't go a day without eating something that was extracted with hydrocarbon whether that's canola oil or soy-product derivative, or natural flavoring. Those are all extracted with hydrocarbon.
Hydrocarbon is flammable, of course, as is ethanol. The key thing to remember is we're working in a controlled environment. We're working with a piece of, no pun intended, Precision-engineered equipment. These are the same types of codes and regulation that you would operate in any controlled laboratory environment. You'd operate in any environment like an oil rig or refinery where you're dealing with things that are potentially flammable.
The same type of controls that you potentially put into anything where fuel is stored in terms of even your vehicle or a gas station. A gas station has controls in it for anti-static. It's a Class I, Division 2 area. Ultimately, these technologies are extremely safe. In our almost decade of operating history, we've never had a single client have any instance of accident. That just puts the context around, "It's a lot of fear-mongering."
The reality is hydrocarbon as a molecule, we think about it as this lock-and-key analogy. There's always going to be a perfect solvent for an individual molecule that we're trying to extract or we're trying to dissolve. These solvents vary in terms of, what we call, polarity, and they vary in terms of their chemical structure. What's important to understand is that hydrocarbon is almost the perfect chemical structure to extract cannabinoids and terpenes. It gives the most efficient, the most effective-- It picks up all the stuff that we want while leaving behind the cellular structure, the chlorophyll, the cellulose, the phospholipids, all the things that we don't want, that the hydrocarbon leaves behind. All the things that we do want, it brings to us.
Ultimately, that leaves us with a very, very, very high-quality extract in almost all circumstances relative to the other technologies in the market. Now, the other technologies are applicable. We sell ethanol equipment as well. Ethanol is less artisanal. It has more of a broad range of extraction. It does pick up quite a bit of chlorophyll. It does pick up waxes and fats. You have to run it very, very, very cold in order to be effective at any artisanal product. It's really good for high volume.
As we previously drove this conversation, it's an artisanal market. Ultimately, that translates into the majority of people using hydrocarbon equipment. It's ultimately why our flagship models have been so successful over the last seven years.
Matthew: It sounds like there's a lot of nuance there. It's not as simple as like, "Hey, CO2 or ethanol is better than butane or propane." There's trade-offs and nuance that you really have to dig deeper to uncover.
Nick: At the end of the day, it all goes back to your product strategy and your product plan, and your throughput. What are you trying to make, how much you're trying to make of a particular product, that's really what we do here at Precision. It's very much a consultative process when somebody buys equipment for us because there is nuances. It is a very technical sale. There is a lot that goes to standing up a production line to making these particular products.
Ultimately, it's what has given us a tremendous amount of success because it's not only myself that has been in the industry for the amount of time that I've been in it, but we've got a very experienced staff. I've personally handpicked most of our technical team over the last five years. They've grown with us and a lot of these guys have been in the industry for a decade-plus and running extractions.
We've got thousands of installations of our equipment. We've seen it all. We're consultants and advisors, as much as we are a company that's going to sell you something. We're always the company that's going to stand there, and make sure that you're meeting your production goals.
Matthew: Some of these multi-state operators or MSOs are raising a lot of money, they have a lot of capital, I'm sure they deploy a lot of it into high-end equipment with you. Do you have a recent install with an MSO that you can think of, and what kind of solution they put in?
Nick: Yes, I have many. Unfortunately, discussing the details of individual clients' MSOs, in particular, their production plan is just probably not the best thing for me to do. I think they'd get a little upset with me. If somebody is curious is listening to the podcast, we have a public disclosure memorandum or whatever you want to call it with this particular client. If you want to look at a Free As Diamond facility, they've put on a new facility, it was several 100 million dollar bills. They put a really diverse line of extraction equipment in there. While I don't think that anybody will be able to see the details in the public domain, they can see the facility. It gives you the type of idea and scope of infrastructure that's being built by these large companies.
If you think about the amount of revenue, just think about their amount of revenue, half of that revenue is coming from extracted products. If these companies are growing to multi-100 million dollar companies, and in some cases, I do believe that these companies will get well over a billion dollars in revenue as the market continues to grow. Just remember, half of that is coming from extracted products. Those extracted products all require a robust infrastructure in order to be created. That infrastructure is created by companies like Precision.
Matthew: Just a question about back to biomass here. I noticed on one of your extraction machines, there's an area that cools down the biomass before it goes into solvent. Can you talk about why that is and what happens if it doesn't get cooled down?
Nick: Yes, absolutely. It's a pretty common practice to freeze biomass and in some instances, deep freeze biomass prior to extracting. What we're really trying to do there, depending on what type of organic solvent we're using, the idea is to really freeze out the water especially with polar solvents like ethanol, you're going to pick up water out of the biomass. In many cases, the biomass that's fresh frozen, it's actually harvested while it's still alive. It's never dried.
If you think about a growing plant, this is how you make live resin. You actually harvest the plant while it's alive. It goes immediately into a vacuum-sealed deep freezer, and that could be anywhere between -10 to -40. In some cases, people are even freeze-drying. What that does is it doesn't allow any of that oxidation to take place with these cannabinoids. It's going to preserve all those terpenes, all those cannabinoids. There's going to be zero degradation.
If you think about it, almost like a banana. The longer you let a banana sit on the counter, the more that oxidative degradation process takes place and the more that the compounds are turned into glucose, the more it degrades, et cetera. The same principle happening with cannabis. Now when it's fresh frozen, you're preserving that. It's just like frozen fruit. You're putting it into the machine and ultimately extracting it in the same manner that would be if it was completely fresh.
It could be ostensibly sitting for 50, 60 to 100 days in the freezer vacuum-sealed, but it's going to give and yield the same result as if it was completely fresh. The other side of that is freezing it in order to bypass any sort of water. Any sort of polar solvent, ethanol, methanol, things like these, they're going to pick up water really, really easy. It's just the nature of the molecule. It likes to grab onto the water while hydrocarbon is more hydrophobic. Ethanol, methanol, and things like that are not. They tend to pick up water. If we keep it very, very cold, the water stays frozen and we can bypass that.
Matthew: Can you tell us some of the most common mistakes you see from business owners just getting into the space in terms of lack of understanding and what's needed and what they could do to get on the right track more firmly earlier on?
Nick: Absolutely. I think that probably the comments in the discussion and just the narrative that we've had thus far, I think it's starting to paint a picture that there is a lot of nuances. There is a lot that goes into this business in terms of extraction. I think that the number one mistake that people make is that they don't have somebody on their side that really knows what they're doing. Now, they hire somebody, and maybe that person knows what they're doing, maybe they don't. It's hard to find people that are really, really good in this industry.
The people that are really, really good, all have jobs at MSOs or the top tier talent always goes to the best places. Somebody that's starting out, their best bet is to find as good as talent as they can, but to really find somebody that knows what they're doing, somebody like at Precision, or hire a consultant that really has a strong history and reputation in the industry because there are so many pitfalls.
The second thing I would say is it's kind of common sense, but budget, making sure that the budget is accurate and planning accordingly. Then the third thing I would say is understanding your market. We talked about each state and each individual market being its own micro-economy and having individual consumer niches within each of these individual marketplaces. That's extremely, extremely important to understand because from day one, you're planning your production and sizing your equipment according to what you think you can sell, obviously. What product is your business going to make?
With that being said, it requires a substantial amount of due diligence. We see that a lot of people, they don't really understand their market as well as they should. We give them advice, of course, on what products to make, how to make them, and bring the production online in the proper manner, but really doing the due diligence around the consumer trends in your state, that's huge. Absolutely.
Matthew: What are your extraction pods? Can you talk about those a little bit? Who buys them and what are they for?
Nick: The extraction pod is a-- Think of it as a pre-made lab in a box. Ultimately, what it is, it's an ocean container that's been outfitted with all the appropriate controls, meaning ventilation, electrical, Class 1, Division 1 equipment placement, et cetera, that's pre-listed. What that translates to is no build-out in your facility. It's something that can be dropped on site and be used pending the approval of the municipality because it is a temporary structure.
It saves our clients from doing a very labor-intensive, robust build-out. Alternatively, if they are doing a build-out, this gives them the option to bring their facility online faster, so long as the municipality that they're operating in is okay with these types of structures being placed on the property.
Matthew: Is it also used as a supplement when they're between different sized extraction equipment, they say, "Okay, let's supplement with a pod until I get to a higher level, or is that not really the case?
Nick: Yes, it can be. A lot of people, they get into a facility, they're in there for two years, they need their production ramped up, their new facilities coming online, but they need excess capacity. Yes, they can bring that online. It's extremely universal. It's meant to be not necessarily an ad hoc solution because I don't really think that's the proper terminology, but it's supposed to be a quick response type of solution where it's saving the client 90, 120, 180 days, on going through permitting, going through build-out, going through plan comments, and all the stuff that it takes in order to build out one of these facilities and bring it online.
Matthew: Where do you see the extraction business changing and evolving in the next three to five years?
Nick: I think the big thing that's going to happen is we're going to get CGMP standards. CGMP means Current Good Manufacturing Practices. When we look at any nutraceutical or supplement or anything like that, all of the manufacturing of supplements in the United States is subject to FDA regulation. It's subject to CGMP standards. We're starting to see that inch into the edibles market in certain municipalities and we're starting to see that inch into the production of CBD-based products.
Ultimately what you're going to see is you're going to see blanket CGMP compliance across the entire cannabis space. We're obviously advising our clients that they need to prepare for that and build for that and plan for that. Our equipment is already CGMP certified. Certified is really not the right nomenclature. It's CGMP compliant or CGMP ready because the equipment is only one part of the GMP process.
You have quality management systems and personnel training and quarantine processes and facility cleanliness standards and all these sort of things that go into CGMP. In terms of where the industry's going, 100% that's where it's going on a compliance standpoint. On a standpoint of product, the industry is going to trend towards all these other minor cannabinoids. We really just know about a few of these cannabinoids, or I would say that the public domain knows about a handful of them, maybe they heard a CBD or CBG or CBN. Obviously, they've heard of THC. Maybe they've heard of Delta-8 THC, which is an isomer of Delta-9 THC or isomer of the acidic version of THC.
What most people don't know is there's over 100 of these cannabinoids in the plant and each of these cannabinoids has a unique molecular structure. Based upon the molecular structure of each of these cannabinoids, it binds to what's called your endocannabinoid system within your body. Your endocannabinoid system is an endogenous system that actually regulates many things within your body. For example, your sleep, your mood, your fight or flight response, your nervous system moving you out of parasympathetic into sympathetic nervous system activity in certain scenarios.
The bottom line, without going into all the robust medical details, is that these cannabinoids, the way that they interact with your body, they have tremendous, tremendous promise. We've seen that with CBN, with CBG, with CBC. We've seen it with CBD obviously. We've seen it with THC, but all of these have a little bit of a different effect. In some cases, they have a profoundly different effect. CBD doesn't get you high. THC gets you high. They all are going to have a very distinct and very robust therapeutic benefit. In a lot of cases, these will be made into products that are multi multi-billion dollar products. We've got 152 clinical trials going on right now with different cannabinoids.
We're really just beginning to scratch the surface of what we know is available and where this technology of isolating these molecules and using them to improve quality of life. We're just beginning to understand what we can do right now.
Matthew: Nick, I'd like to transition to some personal development questions to help listeners get a better sense of who you are. With that, is there a book that's had a big impact on your life or your way of thinking that you'd like to share?
Nick: Oh, many books. I'd read probably, I would say 50 books a year, usually about one a week. I think there's a few whether it's from an investment standpoint or a health standpoint but some of the ones that I really, really liked, I like Benjamin Graham's work. I think that it teaches you how to think about the fundamentals of business. From a business standpoint, I think it's a really good book from investing also, but thinking about the fundamentals of what creates a successful business. These guys have invested in businesses and created businesses and helped to advise the management of businesses for a very, very long time.
From a standpoint of business, I really like most of Benjamin Graham's work. From a health standpoint, I like Dr. Ben Lynch's work. He does a lot of work on the human genome. It's interesting because I had my genome mapped and a lot of other people have their genome mapped. You understand that you're a very unique individual. People push a certain diet or certain lifestyle or any number of these different things but ultimately the research shows that it's all genetically specific.
Some people can tolerate things while others can't. The more that you understand about your personal genome and the more that you understand about how to provide your body nutrition, I think that that gives you a tremendous leg up in whatever you want to do in life because everything on a molecular and cellular level in your body is operating in an optimal scenario. From a health standpoint, I really, really like that.
Matthew: Okay. I haven't heard of that one. What's the most interesting thing going on in your field besides what you're doing?
Nick: Again, I think the most interesting thing goes back to the cannabinoid research because we're a fraction of 1% into that. Ultimately, it's just an endless black hole of unknowns, but the little that we do know is so overwhelmingly positive for humanity, that it just becomes so exciting to be able to continue on that research. To be able to make money from that also it's amazing.
I'm super excited to see where the rest of the industry goes in terms of being able to, again, use these mystical compounds, if you will, within the cannabis plant to treat, cure and prevent human disease.
Matthew: Here's a Peter Thiel question for you. What's one thought that you have that most people would disagree with you on?
Nick: Oh, boy. I think I have a lot. In terms of a contrarian, I think that when you look at a particular situation or a particular person or a problem, you have to look at it holistically. I've always tried to do that. Well, not always, but in my more recent years, I try to look at it holistically. What are all the variables top to bottom end to end? To analyze anything like that gives you I think a greater benefit of your desired outcome. Whether that's hiring somebody within your organization, whether that's making a particular investment into a particular asset.
These are all kind of on the same theme, whether it's your personal health, looking at it holistically, and understanding the truth of whether it's the root cause or in some cases, it could be characterized as the fundamentals. It takes a deep level of analysis to do that. It's on the line of the thinking of a researcher or a technologist. Some people think that that's completely crazy but whenever I make big decisions, that's how I think about them anyways.
Matthew: Final question about Michigan. Obviously Detroit kind of got its lunch eaten when foreign auto manufacturers came in and displaced a lot of American jobs, but is there a Renaissance at all? Obviously, you're a specific example of using manufacturing skills and engineering skills and creating jobs there in Michigan. Apart from what you're doing, are you seeing a broader trend of retooling going on in Michigan?
Nick: Yes, particularly as it pertains to cannabis, I'd say Michigan's economy is generally in an uptrend. The way that people have perceived Detroit for a very long time is probably not what you would anticipate when you come here. When you come here, it's actually really nice. Everything's new, everything's clean. It's not the typical perception, I guess, is what I would say.
Now, cannabis in Michigan is actually booming. Some of the numbers out of BDS and these other publications are anticipating that the Michigan cannabis market is going to be upwards of a 3 billion dollar industry within the next few years here. It's ultimately translated into a lot of jobs being created and a lot of dollars being materialized into the economy here. I think that Michigan has a lot of resources, obviously in terms of engineering and so forth.
I don't know if that directly translates into cannabis specifically. I know that a lot of people from automotive have come into cannabis. The majority of our staff, our engineers, our project managers, and so forth and so on. A lot of them have come out of automotive. Automotive is still, obviously one of the dominant industry sectors here, but Michigan as a whole has diversified economically away from being pigeonholed into one industry also. I think, all in all, it's a positive trend for the state.
Matthew: Well, that's a great note to end on, Nick. As we close can you tell listeners how they can find out more about Precision Extraction and how to reach you or connect with you or salesperson or someone to learn more about your solutions?
Nick: Sure. Absolutely. They can find me on LinkedIn. Just type in my name Nick Tennant, Precision Extraction you'll find me. If you want to talk to anybody about our products or strategy regarding your extraction, we're happy to help. We're in Monday through Friday [9:00] to [5:00] and we've got a robust staff of extremely intelligent and experienced people that can help you out. Our website is precisionextraction.com. You can give us a ring at 855-420-0020.
Matthew: I love the 420 in there.
Nick: We always had to sneak that in. We got to remember our roots, right?
Matthew: Great. Well, Nick, best of luck to you. It sounds like you don't need any luck. Things are just blooming. Well done in creating your business and good luck in the rest of 2021.
Nick: Thank so much. It's been a pleasure speaking with you and I look forward to doing it again.
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