Helping set the quality standard in the cannabinoid industry

With roots in engineering and a track record of entrepreneurial success, Open Book Extracts co-founder and CEO David Neundorfer is applying a rigorous, science-based approach to a dynamic sector in the US economy—cannabinoids.

Neundorfer's company, a leading manufacturer of premium hemp-derived cannabinoid products, is building a reputation as a trusted supplier committed to transparency and quality.

"Every company in this space has to decide what its true north is," says Neundorfer. "We decided early on to self-regulate to the highest standard possible. That's been our core differentiator and our unifying philosophy."

From industrial automation to medical legitimacy

Neundorfer's career path has been anything but conventional. After starting in automotive manufacturing—where he worked with clients like Honda and Toyota—Neundorfer earned his MBA and launched several startups, including a successful industrial automation firm. In the industrial space, his common thread was bringing innovation into mature industries. Then he and his business partner, Oz Hackett, a high school friend, saw an opportunity to bring maturity into the cannabis industry.

The two friends started their cannabis journey in their home state of Ohio—applying for and winning the maximum number of medical cannabis licenses allowable in the state—securing licenses for five dispensaries, large-scale cultivation and processing.

They operated with traceability, transparency and medical legitimacy, enabled by Dr. Martha Hackett, a well-respected family physician who helped build their medical advisory board and served as their chief medical officer. That experience ultimately laid the groundwork for founding Open Book Extracts.

"The 2018 Farm Bill had just passed, and we were shocked by the lack of transparency and quality in the hemp supply chain," Neundorfer says. "We knew there was an opportunity to bring legitimacy, scale and trust to this emerging industry."

A cannabis extraction company built to last

From its start, Open Book Extracts, or OBX, prioritized adherence to Current Good Manufacturing Practice, or cGMP, standards and designed its facilities to meet them. Six months after launching, the company achieved cGMP certification, a milestone it has maintained ever since.

But certifications alone weren't enough. As the industry matured, Open Book Extracts invested in scaling its operations and driving efficiency, positioning itself as one of the most certified and cost-effective hemp-derived cannabinoid suppliers in the market.

Today, Open Book Extracts is a trusted partner for a range of consumer brands seeking quality inputs, documented processes and consistent production—a reputation it's earned through intentional hiring, disciplined processes and a refusal to cut corners.

A strategic banking partnership

That same long-term commitment to the industry is what drew Open Book Extracts to First Citizens. Introduced to the bank by a board member and a colleague in the finance sector, Neundorfer was initially surprised to find such a large financial institution leaning into the cannabis space.

"It felt almost too good to be true," Neundorfer recalls. "The willingness of First Citizens to support this industry, as well as their willingness to support us, helped strengthen our brand in the market."

Since then, the partnership has grown to include commercial banking and credit lines. Representatives at First Citizens often collaborate with Open Book Extracts at conferences and share state and federal regulatory insights.

"Working with a bank that already understands the industry means we're not wasting time educating outsiders. First Citizens is in the boat with us, rowing in the same direction," explains Neundorfer.

Banking to support one cannabis company's growth

Access to capital has played a key role in Open Book Extracts' ability to scale. In addition to raising multiple rounds of venture capital, OBX received a well-timed credit line from First Citizens, which allowed the firm to significantly improve the management of its short-term expenses.

"The credit line was super helpful for us," Neundorfer says. "Working capital cycles can be lumpy in our industry."

Beyond financing, Neundorfer also values the financial insights and analysis First Citizens provides, particularly through the publication of its new cannabis industry report.

"I thought the first report was excellent," he says. "The ability to get statistically significant insights across the industry and to see trends from our peers is really valuable for operators like us."

Neundorfer is looking forward to future reports that delve deeper into submarkets within the cannabis industry, noting that each niche—from CBD to hemp-derived THC seltzers—has its own growth drivers and dynamics.

What's next for Open Book Extracts

Open Book Extracts' current growth strategies include vertical integration and international expansion. The company recently completed two acquisitions and is now pursuing pharmaceutical-grade certifications with the European Union Good Manufacturing Practice, or EU GMP, certification for 2026.

"Achieving EU GMP certification will open new medical markets for us in Europe and South America," Neundorfer says. "It's a major initiative that aligns perfectly with our quality-first philosophy."

Looking further ahead, Neundorfer envisions a more unified cannabis industry—one that transcends the current regulatory divide between hemp and marijuana. In his view, the real metric of success isn't who holds more licenses or operates in more states. It's how many Americans keep cannabinoid-based products in their refrigerators, pantries and medicine cabinets.

"Hemp has the potential to drive mainstream adoption. It's lower dose, more predictable and already resonates with health-conscious consumers," Neundorfer explains. "We're excited to see where the market goes next and proud to be playing a part in shaping its future."

The two organizations' continued commitment to the cannabis industry has strengthened the Open Book Extracts and First Citizens relationship.

"It feels great to know that we have a long-term partner that's with us in the market, even before it's sorted out fully," Neundorfer says. "And that's a crucial factor for us as operators and leaders of this company."