Harvest Update at New Brunswick CBD Hemp project
Vancouver, BC — (November 14, 2018) - Global Hemp Group Inc. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRA: GHG) and its joint venture partner Marijuana Company of America, Inc. (OTC: MCOA) (the “Partners”) wish to provide an update on the harvest at their CBD hemp project in New Brunswick (“NB”), Canada.
The 2018 cultivation consisted of 125 acres contracted from four farmers in the northeast region of NB, utilizing three Health Canada approved cultivars with an expected CBD content of 1.5% to 2.5%. This group of enthusiastic and innovative farmers were of great assistance to the project over the course of the season. Harvesting of hemp for cannabinoid extraction required some innovation to handle both the harvesting and initial processing of the hemp. Dr. Paul Perrault, GHG Director and New Brunswick Project Manager stated, “We want to thank the farmers for their creativity and willingness to find solutions to the challenges that arose as we worked through the harvesting and drying process for this year’s cultivation”.
The harvest in NB has been completed. In order to process the hemp for cannabidiol (“CBD”) the first step in the process is drying the biomass. The team set up three drying facilities, the main industrial-scale biomass dryer located at the group’s facility in Bathurst (as announced August 30, 2018), and two smaller refurbished tobacco kilns were installed onsite at two of the farms. The auxiliary drying units installed on the farms arrived later in the season are currently being made ready to be operational for use in the 2019 growing season.
The Partners now have 17.5 tonnes of dried biomass in storage from this year’s harvest, a yield lower than expected due to weather issues, some minor pest issues and a bottleneck in processing the harvested hemp material. In order to address the processing issues encountered in this year’s operations, members of the engineering department of the Collège Communautaire du Nouveau Brunswick (CCNB) were brought in to assist in identifying solutions to expedite harvesting and increase efficiency in the processing of the hemp. With the assistance of CCNB we expect to improve the harvesting system to minimize straw intake at harvest and to adapt the tobacco kilns to processing hemp tops. Discussions are underway with CCNB to formalize this collaboration around two projects on harvesting and processing which will involve the current group farmers. Their experience will be invaluable in this research. In addition, with the advent of the additional tobacco dryers, decentralized drying and storage at the farm level will be introduced for the 2019 cultivation. Such additional dryer capacity at the farm level will reduce the drying bottleneck experienced this year and will minimize the Company’s carbon footprint by significantly reducing the transport cost of moving tons of moisture laden material.
The Partners are now evaluating how best to monetize this year’s harvest. At this point they have had discussions with a number of potential purchasers of the biomass.
The 2018 hemp cultivation provided the group with a tremendous amount of knowledge and experience from this year’s larger scale operation. The Partners continue to be committed to hemp cultivation and processing in northeastern New Brunswick. We are convinced significantly better results can be achieved with improved genetics and further refinement of farming and processing practices. Industrial hemp cultivars containing 4-5% CBD already on trial in NB would more than double the performance of current cultivars used in 2018, but have not yet been registered for use as a Health Canada approved cultivar.
GHG also announces that it has settled an aggregate of $36,264.11 of indebtedness of the Company with our farming partners (GHG’s share of the amount owed) through the issuance of an aggregate of 308,631 units at a price of $0.118 per unit. The units consist of one common shares (“Common Shares”) and one half of one common share purchase warrant, entitling the holder thereof to purchase one additional common share for a period of 12 months from the closing date at a price of $0.13.
The Common Shares issued pursuant to the debt settlement, and any shares that may be issued on exercise of the warrants are subject to a four month and one day hold period pursuant to applicable securities laws.
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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