PrimeLab

PrimeLab d.o.o. is a Slovenia-based company established in June 2022, operating in the cannabinoid processing sector. The company focuses exclusively on the extraction, purification, and refinement of hemp-derived raw materials into high-purity CBD derivatives. These ingredients serve as essential components for manufacturers across the cosmetics, pharmaceuticals, nutraceuticals, and vaping industries. PrimeLab does not produce end-user products but supplies intermediate materials in bulk, wholesale, and white-label formats, positioning itself as a key B2B supplier in the European CBD value chain.

The company maintains an in-house analytical laboratory, FDA-approved for quality control processes. Hemp biomass is sourced from vetted European suppliers, while extraction reagents and solvents are procured locally in Slovenia. The company’s technical process includes solvent-based extraction, winterization, solvent recovery, decarboxylation, fractional distillation, and isolation. Final products include CBD isolates and broad/full-spectrum extracts with consistent purity profiles, suitable for integration into various consumer-ready formulations.

This line of business does not require special licensing under Slovenian law, allowing PrimeLab to operate efficiently within the existing regulatory framework.

Product portfolio

PrimeLab d.o.o. specializes in the following hemp-derived products:

• Hemp extract, THC free
• Hemp extract 2, THC free
• Hemp derivate, THC free
• Hemp extract THC free, with natural terpenes
• Hemp extract, <0.2% THC, with natural terpenes

These products are shipped in bulk to industrial buyers, primarily for incorporation into cosmetics, pharmaceuticals, food supplements, and vape formulations.

Key clients and market footprint

As of 2024, approximately 98% of PrimeLab’s revenue is generated from international clients across Europe, including companies such as Astrasana Czech s.r.o., SYNCA LAB AG. SL, and Amazing Health Care s.r.o. The remaining 2% stems from domestic operations. The company targets businesses requiring consistent volumes of refined hemp ingredients under white-label and private-label arrangements.

Leadership and expertise

PrimeLab d.o.o. is led by Drazen Pozar, an industry professional with a strong background in cannabinoid refinement and pharmaceutical applications. His leadership has been central to establishing a structured and scalable production model with a focus on compliance, efficiency, and B2B integration. Pozar’s approach emphasizes scientific rigor, technical infrastructure, and stable international partnerships.

Business model and structure

The company operates under a lean organizational structure:

• CEO (Drazen Pozar): Oversees strategic development and client relationships.
• Sales Manager: Manages B2B contracts and order execution.
• Senior Chemist: Supervises laboratory operations.
• Chemists: Execute production and testing.
• Support Staff: Handle logistics and packaging.

In 2022–2023, PrimeLab briefly explored contract manufacturing of branded vape cartridges but suspended this activity due to the lack of specialized infrastructure. The decision reinforced its core focus on raw material production.

Operational challenges and mitigation

A major disruption occurred in early 2023 following the resignation of the senior chemist due to health issues. This led to a temporary breakdown in quality control and a significant product write-off. To address these operational gaps, PrimeLab entered into a collaboration with INSTITUT ZA OPŠTU I FIZIČKU HEMIJU AD, BEOGRAD (STARI GRAD) (Institute for General and Physical Chemistry, Belgrade), which enabled the company to stabilize production and restore output standards.

Competitive strengths

• Efficient, high-purity extraction and isolation technologies
• FDA-approved in-house quality control systems
• Strong institutional R&D collaboration
• Reliable European supply chain for hemp biomass and solvents
• Flexible B2B delivery models (bulk, private label, white label)

Limitations and risks

• Exposure to CBD regulatory volatility across European jurisdictions
• Dependence on external biomass suppliers
• Limited diversification into finished goods
• Vulnerability to staff turnover in specialized roles

Conclusion

PrimeLab d.o.o. has established itself as a specialized cannabinoid processing facility with clear operational focus and industrial alignment. Its model is sustainable, quality-driven, and supported by international demand. Future resilience will depend on strategic investments in infrastructure, staff continuity, and proactive regulatory alignment. Strengthening supplier contracts and expanding lab capacity will be key steps toward maintaining long-term competitiveness in the European CBD market.

Metric	2022 (€)	2023 (€)	2024 (€)
Total Revenue	421,650	1,557,370	2,310,238
COGS	205,430	198,884	1,761,330
Gross Profit	216,220	1,358,486	548,908
Operating Expenses	46,004	599,250	910,677
Operating Profit	170,215	759,235	-361,769
Net Profit	139,251	-35,444	-738,858

 

Unit economics

Direct production cost typically accounts for 48–54% of selling price, varying by product. Includes raw materials, utilities, and production labor.

PrimeLab d.o.o. has shown consistent revenue growth, especially from exports (98% of 2024 revenue). Losses in 2024 stemmed from deferred 2023 expenses (€810k) and investments in production upgrades. A €763k product write-off in 2023 remains a potential tax risk, but was used for supplier payments.

Accounts payable improved from €810k (2023) to €590k (2024), while receivables grew to €416k, signaling stronger collections.

Strengths

• Strong export-driven revenue growth
• Improved working capital position
• High production margin under stable conditions
• Operational recovery not fully reflected in net profit

Weaknesses and risks

• Potential tax liabilities from 2023 write-offs
• Tight financial reserves affecting procurement
• High consultant costs due to ongoing production stabilization

Conclusion

The company’s fundamentals are improving, with capital investments setting the stage for profitable growth. Priorities should include cost control, further automation, and supply chain resilience.

Regional market overview

• The European CBD market reached an estimated size of €2.8 billion in 2023
• Projected CAGR through 2030: 16%
• Growth is driven by increased legalization, consumer interest in wellness products, and industrial applications across pharmaceuticals, cosmetics, and food sectors
• Europe remains one of the fastest-growing global regions for industrial hemp-based CBD, supported by regulatory frameworks and consumer trust in plant-based health solutions

Key drivers of growth

• Expansion of legal and regulatory clarity across Europe
• Increased consumer awareness and demand for natural health products
• Investment in extraction and refinement technologies, boosting efficiency
• Application diversification across food, pharma, and cosmetics

Country-specific market overview – Slovenia

• Domestic CBD market is limited and lacks precise valuation due to evolving regulations
• Slovenia serves as a processing and export hub for European CBD products
• Key advantages: cost-effective operations, centralized EU location, streamlined regulatory compliance
• Slovenia's regulatory environment aligns with EU standards (THC <0.2%)
• Export-focused production model due to limited domestic demand
• Proximity to suppliers and established logistics infrastructure enhance export capacity

Company’s market position

• PrimeLab d.o.o. is a B2B supplier of hemp-derived CBD extracts for private-label and industrial use
• The company does not produce end-consumer products but focuses on supplying raw CBD materials for pharmaceuticals, cosmetics, food supplements, and vaping industries
• It differentiates through in-house lab testing, advanced extraction methods, and white/private label capabilities
• PrimeLab operates within a regulatory-compliant, cost-efficient structure designed for scalable export operations

Key clients 98% of revenue in 2024 came from international clients. Key clients include:

• Astrasana Czech s.r.o.
• SYNCA LAB AG. SL
• Amazing Health Care s.r.o.
• Pharmabinoid B.V.
• Dutch International Health
• Green Brothers Lux
• FLOWERS FARM SRL
• Botanicalz Supply SARL
• KCA LABS
• Jerycan Cz s.r.o.

Key suppliers

• BOTANICALZ SUPPLY
• HEMAPRE, d.o.o.
• LEAF SCIENCES EUROPE B.V.
• SHANDONG MINGLANG CHEMICAL CO
• RU-VE d.o.o.
• ISTRABENZ PLINI d.o.o.
• BRENNTAG LJUBLJANA d.o.o.
• Messer Slovenija d.o.o.
• T.T.T. D.O.O.

These suppliers support PrimeLab’s continuous access to high-purity biomass and essential laboratory inputs, contributing to production reliability and quality control

Strategic vision

• Target: 25% sales growth in 2025.
• Focus: strengthen client ties, expand to France and Italy, and boost efficiency.
• Channels: exhibitions, direct meetings, and referrals.

Key client expansion

• Three clients contributed 31.4% of 2024 revenue (€725,000).
• Contracts for H1 2025 confirm €648,000 in shipments.
• Expansion targets: France and Italy.

Production investment

• New equipment lifts capacity to €4.3M/year.
• With 70–75% use, meets growth without major restructuring.
• Benefits:
  • Faster processing, less waste
  • Lower defect rate
  • More automation, fewer labor costs
  • EU quality compliance
  • Better cost efficiency and order flexibility

Growth justification

• Secured demand for 2025
• France and Italy offer high-growth markets
• Equipment enables efficient scaling

Strengths

• Strong B2B client network
• White/private label flexibility
• EU-compliant in-house lab
• Operational efficiency improving margins

Risks

• Upfront capex before ROI
• Tougher competition in new markets
• Potential EU regulation changes

Conclusion

PrimeLab d.o.o. aims to grow through confirmed demand, market entry, and production upgrades—strengthening its role in Europe’s B2B CBD supply chain.

PrimeLab d.o.o. is requesting a loan of €525,000 to finance the acquisition of new production equipment aimed at expanding processing capacity.

Planned asset acquisition

• 2 × Stainless Steel Molecular Distillation Units (SMD-25), flow rate: 75 kg CBD/h each
• 2 × Solvent Recovery Units, capacity: 500 l/h (heptane or ethanol)
• 2 × Nuce Filter Reactors (100 L)
• Spare parts: €25,000

 

General overview

• The €525,000 loan is secured by a mix of existing fixed assets, newly acquired equipment, and dynamic inventory holdings.

Fixed asset collateral

• Total existing assets: €360,000
  • Laboratory equipment
  • Industrial machinery
  • Ventilation and filtration systems
  • Supporting infrastructure

New equipment (financed by the loan)

• Estimated value: €525,000

Dynamic asset collateral

• Inventory (average monthly value): €300,000
• Accounts receivable: Steady inflow from long-term B2B clients