Hemptown Organics Corp., a multi-state hemp operation doing business as Hemptown USA, announces the completion of a CAD $23,240,000 ($17,135,345 USD) 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.
Hemptown says that with the infusion of more capital, the company will be able to expand its business into multiple states; purchase USD$5.5 million worth of Oregon CBD (cannabidiol) seeds; start building its processing and extraction facilities; create a research team, and initiate planting and harvesting of Hemptown USA’s 2019 crop of feminized hemp seeds.
“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,” Rod Wolterman, Founder and Chairman of Hemptown USA.
Hemptown USA Highlights:
- 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.
Hemptown USA plans to use this additional capital to fund its operations into several states with a rapidly growing hemp market. With roots in 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.
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