Two Rivers / GrowCo Investor Update 09/16/16
Hemp
Two Rivers, through its wholly owned subsidiary Dionisio Farms & Produce (DFP), planted 65 acres of hemp this year. The hemp was grown on a contract basis for a processor who extracts CBD oil from the plants. CBD oil is a non-psychoactive extract from hemp used for the treatment several maladies including seizures and rheumatoid arthritis.
The processor provided starter hemp plants, tended the plants during the growing season and will harvest the plants. In exchange DFP will receive $1,500 per acre or 6% of CBD oil sales by processor, which ever is greater. The processor stated recently that of all the growers they contracted with this year, DFP grew their best hemp crop.
DFP intends to expand hemp operations next year using it as a rotation crop because of the higher net values to DFP. DFP is in discussions with GrowCo to build a processing plant in 2017 and potentially process hemp for the region.
Russ Dionisio of DFP and Wayne Harding, CEO of Two Rivers.
