Hemptown USA Closes CAD $23M Capital Raise
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CENTRAL POINT, Ore., May 14, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- Hemptown Organics Corp. (“Hemptown USA” or the company), a multi-state hemp operation doing business as Hemptown USA, announces the completion of a CAD $23,240,000 round of financing, which closed May 10, 2019. Canaccord Genuity Corp. acted as lead agent on the brokered portion of the financing on behalf of a syndicate of dealers that included Sprott Capital Partners LP, Beacon Securities Ltd., and PI Financial Corp. In concert with existing revenue and capital, the financing enables Hemptown USA to embark on a multi-state expansion; purchase USD$5.5 million worth of Oregon CBD (cannabidiol) seeds; begin the build-out of Hemptown USA’s processing and extraction facilities and research team, and initiate planting and harvesting of Hemptown USA’s 2019 crop of feminized hemp seeds.
With this capital infusion, Hemptown USA is endeavouring to become a formidable multi-state operation within the rapidly growing hemp industry. As a byproduct of growing high-grade feminized hemp, Hemptown USA is proposing to processes full spectrum CBD and CBG crude and distillates, achieving higher yields versus industrial hemp. Hemptown USA’s competitive advantages include, but are not limited to:
-- A first-year yield of 110,000 lbs of feminized hemp biomass. -- A projected gross margin greater than 77% on average from 2018’s harvest. -- Is one of the largest CBG producers in the United States with Hemptown USA’s purchase of 1 million rare CBG seeds for the 2019 growing season. -- Producing some of the world’s most coveted strain profiles containing 15% - 20% full spectrum CBD, CBG and other cannabinoids and terpenes. -- Presently growing 1,500 acres in Oregon, Kentucky and Colorado with the capability to more than double the acreage in 2020 and each year after. -- An R&D plan designed to allow Hemptown USA to farm more novel cannabinoid strains in large quantities (CBC, CBDV and CBGV) in 2020, 2021 and 2022. -- Plans to acquire a GMP- certified nutraceutical facility to develop unique cannabinoid products for the health and wellness industry . -- Plans to enter into the Consumer Packaged Goods sector by building and acquiring high-potential brands.
“Successful companies in this sector will be those with the ability to build a scalable, vertically integrated multi-state company,” stated Rod Wolterman, founder and chairman of Hemptown USA. “We have assembled a well-respected team that has already produced some of the highest quality feminized hemp in the country here in Southern Oregon’s Emerald Triangle. The capital infusion will allow us to expand operations to Colorado, Kentucky and Northern California, ramp up processing capabilities, and develop disruptive product formulations in the CPG sector. We are excited to execute on our vision and delivering sustainably grown feminized hemp flower and biomass on a commercial scale.”
For more details on the brokered and non-brokered financing, please refer to Hemptown USA’s news release dated March 18, 2019.
About Hemptown USA
From the rich soils of Southern Oregon which resides at the tip of the Emerald Triangle, Hemptown USA is growing some of the finest high cannabinoid hemp plants in the world. Following an impressive first year yield, Hemptown USA is scaling up its operation to meet the ever-increasing global demand for cannabinoid products. With the expanded farmland and in-house extraction/processing facilities Hemptown USA is now positioned to vertically integrate into the consumer packaged goods sectors with top quality-branded product lines for the consumer market, Hemptown USA’s vertically integrated business model is well-positioned to capitalize on a global market expected to exceed $22 billion by 2020. For more information visit: www.hemptownusa.com.
Disclaimer for Forward-Looking Statements
This news release contains forward-looking statements that involve various risks and uncertainties regarding future events. Such forward-looking statements are based on current expectations of management, involve a number of risks and uncertainties, and are not guarantees of future performance of the Company. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the closing date of the financing, the attributes of the securities to be offered and sold by the Company, the proposed use of the net proceeds of the Offerings. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include general market conditions, significant business, competitive, political and social risks and other factors beyond the control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Company ContactZayn Kalyan email@example.com 778-938-3367