HempAmericana Announces LOI to Source 90K Lbs. of Premium Certified Hemp Flower for CBD Oil Production
Newsfile Corp.
Newsfile Corp
New York, New York--(Newsfile Corp. - January 21, 2020) - HempAmericana, Inc. (OTC Pink: HMPQ) ("HempAmericana" or the "Company"), an emerging leader in the CBD products market, is excited to announce the signing of a Letter of Intent (the "LOI") between HempAmericana and Hempistry, Inc. ("Hempistry", hempistry.com), based in Madisonville, Kentucky. The LOI provides for the shipment from Hempistry of up to 90,000 lbs. of premium hemp flower to HempAmericana's primary extraction and production facility in Augusta, Maine, where it will be processed by HempAmericana and sold as premium Full-Spectrum CBD Oil, with each party receiving 50% of the proceeds. The initial shipment is expected to arrive this week in Augusta Maine, which will be 1,000 lbs. as a test run of the extraction process.
Management expects the Full-Spectrum CBD Oil produced from this supply of hemp flower to have a market value of as much as $5 million based on industry standard assumptions.
"This is an excellent source of premium grade Hemp Flower that will allow us to ramp up a substantial marketable inventory of Full-Spectrum CBD Oil and related products without incurring any significant upfront cost," commented Salvador Rosillo, CEO of HempAmericana.
The hemp flower to be shipped from Hempistry shall be accompanied by Certificates of Analysis ("COA's") confirming CBD content levels between 9%-13% and THC content levels below 0.3%, in accordance with Federal and State mandates for marketable CBD Oil. The COA's will also confirm that all shipped hemp flower from Hempistry will be 100% free from impurities such as pesticides and fungal growth.
Management notes that market conditions for CBD-based products continue to present a powerful opportunity for HempAmericana. Brightfield Group research suggests that the overall CBD-related products market grew over 700% in 2019, pushed along by uptake and distribution from mainstream big-brand US retailers (such as Kroger's, Walgreens, Walmart, Rite-Aid, and others) who began to carry CBD products in plain sight of browsing customers. This mainstreaming trend is expected to continue in the quarters and years ahead. According to research from MRFR, the global CBD market is estimated to register continued strong growth at a CAGR of 125% from 2019 to 2026.
Rosillo continued, "We have one of the most advanced high-capacity extraction and processing facilities in the eastern US market. This LOI provides the Company and our shareholders with an extremely efficient raw goods supply large enough to power significant financial performance to kick off 2020."
Following shipment of the premium Hemp Flower from Hempistry, HempAmericana will undertake extraction and processing at its facilities, producing full-spectrum CBD Oil, which will then be delivered for testing by a third-party ISO certified lab to ensure THC content levels below 0.3%, and to certify the absence of metals, microbials, and mytoxins. According to the LOI, HempAmericana will also maintain adequate insurance to cover all hemp biomass located at its processing facility against harm or theft for the duration of storage and processing activities.
About HempAmericana, Inc.
HempAmericana is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. The Company's CBD oil business uses the brand designation, "Weed Got Oil". HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, "Rolling Thunders". See more at www.hempamericana.com.
AI
