Socati raises $33 million to produce THC-free hemp extracts
Socati, a developer of hemp genetics, cannabinoid science, and extraction and purification technology, has closed a $33 million second round of funding from private investors.
Socati, a developer of hemp genetics, cannabinoid science, and extraction and purification technology, has closed a $33 million second round of funding from private investors. The capital will be used to bring operations to manufacturing scale, enabling Socati to be a high-volume processor of THC-free full-spectrum hemp. The company raised $9 million in the first round of seed funding.
“We are excited to announce this successful newest round of funding as it shows the intense interest investors have in the space and the growth potential of the market,” said Josh Epstein, CEO at Socati. “This capital gives us the ability to bring ourselves up to scale and provide leading consumer goods companies with a reliable, superior product that meets the growing demand for hemp extracts, including CBD and other cannabinoids, in consumer products.”
Following the passage of the U.S. Farm Bill, hemp and its derivatives, extracts, and cannabinoids, including hemp CBD are no longer classified as Schedule I substances and are now federally legal. The market for products containing CBD was estimated to be $591 million in 2018 and projected to increase nearly 40 times to $22 billion by 2022, according to Brightfield Group research.