The Venture Codex

Participated · Seed · Sep 2018

Trait Biosciences, based in Santa Fe, NM, develops technologies that transform water-insoluble cannabinoids into water-soluble materials. The company says its new ingredients deliver unique benefits to multiple end-use consumer products. Trait expects a 1Q 2024 launch of its first-generation water-soluble CBD. It closed a financing round of undisclosed size led by Btomorrow Ventures (the corporate venture capital arm of BAT) and Gotham Green Partners. The company intends to use the funds for development and commercialization efforts and to support partnerships with contract manufacturers and go-to-market partners. Trait Biosciences is focused on developing technologies to enable the production of CBD products, including its proprietary 2XGLY Water Soluble Cannabinoid technology. The company holds more than 90 active patent applications focused on innovative cannabinoid technology. Trait’s first-to-market product that enables marketplace CBD extract to be converted into a water-soluble cannabinoid extract was slated to launch in 2022. It is also developing an IP portfolio in biomolecular plant transformation technology designed to improve minor cannabinoid productivity in plants and strengthen overall crop yield for hemp cultivators. The company is led by CEO Peter McDonough and is based in Vancouver, BC. Trait raised C$31M in a Series A financing that included new cash and the conversion of existing company debt to accelerate R&D and commercialize its water-soluble technology. Trait Biosciences is developing a proprietary fermentation process to convert fat‑soluble cannabinoids into water‑soluble molecules that improve onset time, bioavailability, flavor and shelf life without relying on nanotechnology. The company targets beverages initially and intends to be a branded ingredient provider to existing producers. Its Producer Division is also developing ultra‑high yield “Super Producer” plants and RNAi‑based plant protection to reduce toxins without pesticides. The conversion process currently takes about 48 hours and attaches a sugar moiety, which the team says improves taste and stability. The recent financing will fund R&D, expand the scientific team, and establish a state‑of‑the‑art research facility. Management expects at least one year of runway from the raise and plans to seek further funding ahead of a public listing tentatively planned for 2019.