Global Hemp News: Jan. 25, 2001...
GLOBAL HEMP GROUP ANNOUNCES CONSULTING AGREEMENTS AND ISSUANCE OF OPTIONS AND WARRANTS
Vancouver, BC -- (January 25, 2021) -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) announces that pursuant to its stock option plan, it has granted stock options to purchase up to 5,300,000 common shares of the Company at an exercise price of $0.055 per share. The options have a term of five years expiring January 25, 2026 and shall vest in immediately.
The Company would also like to announce that it has entered into three consulting agreements (the "Consulting Agreements"). The first Consulting Agreement is with Twilight Capital Inc. ("Twilight") with respect to Twilight providing consulting services to support the Company’s business strategy in seeking various sources of funding. The second Consulting Agreement is with Prof. Víctor M. Castaño, Ph.D. with respect to acting as a R&D Advisor to the Company and to head GHG’s Research and Development Division, with the objective of creating Intellectual Property/patented technology that will be utilized at the Company’s projects and widely marketed throughout the United States. The third Consulting Agreement is with Gabriel Gauthier, a master hemp builder and pioneer in hemp construction in North America. Mr. Gauthier will advise on the utilization and application of hemp building materials and hemp construction for the Company's Colorado project
Terms of the consulting agreements, effective January 25, 2021, the Company to issue 3,000,000 warrants exercisable at the current market price, but in no case less than $0.05. These warrants will be exercisable for a period of five years from the date of issue and will vest six months after issuance. On the one year anniversary of the agreement the Company will issue an additional 4,000,000 warrants with an exercise price based on the previous 10 day VWAP, but in no case less than $0.05. The warrants will have a term of 5 years from the date of the one-year anniversary. On the two year anniversary of the agreement the Company will issue an additional 4,000,000 warrants with an exercise price based on the previous 10 day VWAP, but in no case less than $0.05. The warrants will have a term of 5 years from the date of the two year anniversary.
Warrants issued on the one year and two year anniversaries will vest in each year of issuance as follows:
- 50% of the yearly issuance on date of issuance, and
- the remaining 50% of the yearly issuance after 6 months from date of issuance
The Company and the Consultants maintain an arm's length relationship.
The Company will issue 9,000,000 common share purchase warrants (each a "Warrant") to the consultants of the Company. Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.055 for a period of five (5) years from the date of issuance. The Warrants were issued pursuant to the terms of consulting agreements entered into by the Company and each of the consultants and each Warrant was issued at a deemed value of $0.055 per Warrant. All Warrants and underlying shares are subject to a four month hold period from the date of issuance. The issuance of the Warrants is subject to the final approval of the CSE.