Hemptown USA Closes CAD $23M Capital Raise
Company Now Positioned for Rapid Multi-State Expansion and “Soil to Oil to Shelf” Full Vertical Integration within Global Hemp Industry
Central Point, Oregon–(Newsfile Corp. – May 14, 2019) – Hemptown Organics Corp. (“Hemptown USA” or the company), a multi-state hemp operation doing business as Hemptown USA, announces the completion of a CAD $23,240,000 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. In concert with existing revenue and capital, the financing enables Hemptown USA to embark on a multi-state expansion; purchase USD$5.5 million worth of Oregon CBD (cannabidiol) seeds; begin the build-out of Hemptown USA’s processing and extraction facilities and research team, and initiate planting and harvesting of Hemptown USA’s 2019 crop of feminized hemp seeds.
With this capital infusion, Hemptown USA is endeavouring to become a formidable multi-state operation within the rapidly growing hemp industry. As a byproduct of 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. Hemptown USA’s competitive advantages include, but are not limited to:
- 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.
Successful companies in this sector will be those with the ability to build a scalable, vertically integrated multi-state company. “We have assembled a well-respected team that has already produced some of the highest quality feminized hemp in the country here in Southern Oregon’s Emerald Triangle.
Rod Wolterman, Founder and Chairman of Hemptown USA
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.
For more details on the brokered and non-brokered financing, please refer to Hemptown USA’s news release dated March 18, 2019.
About Hemptown USA
From the rich soils of Southern Oregon which resides at the tip of the Emerald Triangle, Hemptown USA is growing some of the finest high cannabinoid hemp plants in the world. Following an impressive first year yield, Hemptown USA is scaling up its operation to meet the ever-increasing global demand for cannabinoid products. With the expanded farmland and in-house extraction/processing facilities Hemptown USA is now positioned to vertically integrate into the consumer packaged goods sectors with top quality-branded product lines for the consumer market, Hemptown USA’s vertically integrated business model is well-positioned to capitalize on a global market expected to exceed $22 billion by 2020. For more information visit: www.hemptownusa.com.