On November 3, 2020 the Company entered into a Purchase Agreement to acquire all of the assets of V Brokers LLC dba as Veteran Hemp Co. from Patriot Shield National LLC. Veteran Hemp Co. is a seller, broker, and wholesaler of cannabidiol (“CBD”) products. Under the terms
of the Purchase Agreement Patriot Shield National LLC has also assigned certain intellectual property, assets, and the website www.veteranhempco.com to the Company.
On November 4, 2020 the Company purchased a website and business currently selling CBD topicals and rubs under the name “Highly Relaxing”. Hero Technologies will retain the owner on a consulting basis to create and continue the manufacture of the topical rub for the Company and
to continue operations. The company acquired the website highlyrelaxing.com.
The Company is targeting a large outdoor cannabis cultivation operation in the Southwestern United States. The purchase for the land is about $4.2 million. Build out costs to become fully operational are estimated at $2 to $6 million. The Company has not signed a Letter of Intent with the Seller nor has the Company contracted for any sort so exclusivity or no shop provisions.
If sufficient funds are raised, the Company will enter into an agreement to acquire this farm. Through the acquisition, the Company will gain control of a semi-operational 1,000+ acre cannabis farm as well as medical and recreational cultivation, production, and distribution licenses. The farm asset has up to 250 acres of potentially operational farmland with significant onsite infrastructure to build out additional acreage.
Upon acquisition, the Company plans to inject ~$0.5mm of capital into the business in order to acquire and install the necessary infrastructure to produce and distribute retail and medicinal THC products. Over a 14-month
period following the acquisition and capital expenditures, the Company expects to produce 6,000 lbs. per month, across 12 greenhouses, in a 20-acre outdoor grow with the potential to double production capacity and volume in year 2.
The Company believes that this acquisition will provide significant synergies with its existing business and potential future acquisition targets.
These recent events, and opportunities, are consistent with the company’s growth and development strategy. The Company seeks to use the financing capabilities as a public company to raise funds necessary to commence the Blackbox operation and a major outdoor cultivation operation in the near term.
The Company does believe that with eventual federal legalization of cannabis, our online assets could be used to sell Cannabis directly to consumers. According to a recent Wall Street Journal article, citing the McKinsey & Co. Covid-19 U.S. Consumer Pulse Survey of 1,063 adults, conducted Sept. 18-24, 2020, online sales have increased 26% for groceries, largely because of consumers shopping from home due to the pandemic. Ecommerce is a part of the Company’s growth strategy.
On November 13, 2020, the Company retained the services of an investor relations company, HR Trading LLC. Under this agreement, HR Trading LLC will advise and support Hero Technologies on matters related to corporate communications. Hero Technologies and HR Trading will work together to keep shareholders and investors well informed regarding the Company’s development. The Company expects to retain the services of additional investor relations companies in the near future.
