Global Hemp Group and Marijuana Company Of America to form Joint Venture with Space Cowboys’ Colorado Farm
Vancouver, BC — (October 10, 2017) - Global Hemp Group Inc. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRA: GHG) an industrial hemp and cannabis corporation, and Marijuana Company of America, Inc. (“MCOA”), (collectively the“Companies”), are pleased to announce they have jointly entered into a letter of intent with Space Cowboys, Inc. (“Space Cowboys”) for the purposes of forming a joint venture (the “Joint Venture”). Space Cowboys is an existing fully licensed and compliant hemp derived cannabinoid producer in Colorado.
Pursuant to the terms of the letter of intent and subject to the Companies obtaining sufficient financing, the Companies will invest US$2.5 Million in exchange for a 25% equity interest in Space Cowboys. The investment funds will be used to expand Space Cowboys’ cultivation operation.
Space Cowboys is in its fourth year of operation and is in full compliance with Colorado state law and the Colorado Department of Agriculture. The business consists of both indoor and outdoor cultivation of high CBD hemp on properties in Longmont and Loveland, Colorado. Space Cowboys current hemp crops will be harvested in the latter part of October and prepared for extraction of the high value cannabinoids.
For the Companies, in addition to the potential revenue streams generated from Space Cowboys ongoing high cannabinoid hemp production, this joint venture will provide the opportunity to be a part of a legal operation with the extensive knowledge and experience required to cultivate and process industrial hemp into raw cannabinoids. This will enable Global Hemp Group to develop its Hemp Agro-Industrial Zone concept. For MCOA, it will also provide a consistent cannabinoid supply from a known source and trusted partner for its hempSMART™ product line.
“We are very excited to have this opportunity to deepen our relationship with Space Cowboys and Marijuana Company of America. From the prospect of having Space Cowboys consult on our New Brunswick hemp project, the relationship has developed into a significant opportunity for the Company to establish itself in the hemp industry on both sides of the border”, said CEO, Charles Larsen.
The transaction is subject to a number of conditions, including but not limited to, completion of satisfactory due diligence, entry into a definitive agreement and receipt of any necessary regulatory approvals. There is no assurance such conditions will be met or that the Companies will be able to secure the financing necessary to complete the transaction on acceptable terms or at all.
About Space Cowboys
Space Cowboys operates hemp farms in the state of Colorado for the primary purpose of Cannabinoid production. Space Cowboys’ operations are in full compliance with Colorado state law and the Colorado Department of Agriculture.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products containing CBD under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG), is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry in both Canada and the United States. The Company is headquartered in Vancouver, British Columbia, with hemp cultivation operations in New Brunswick and Oregon. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
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Forward Looking Statements. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Global Hemp Group Inc., including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk, the legality of cannabis and hemp. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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