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HempAmericana Signs Letter of Intent to Purchase Entire Hemp Crop from Key Supplier
NEW YORK, Jan. 10, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE – HempAmericana, Inc. (OTC: HMPQ) (“HempAmericana” or the “Company”) is excited to announce that the Company has signed a Letter of Intent (“LOI”) for the purchase of the entire crop of hemp flower from a key East Coast supplier. Such hemp involved in a subsequent purchase agreement will go toward supplying the Company’s CBD extraction and production activities at its primary facility in Augusta, Maine.
As the Company has noted in its recent press releases, production activity is set to ramp up to full-scale levels, and acquiring sufficient hemp supplies is a clear priority for management.
CEO, Salvador Rosillo stated, “My team and I will be traveling down to the site next week to meet with the team from the key supplier along with more than 40 other farmers in the region. We believe this will be the beginning of a beautiful relationship as we look to establish a pipeline of hemp flower heading up the coast to join with our local suppliers here in Maine, in addition to our plans for immediate expansion beyond Maine.”
The deal with this key supplier is believed to be the first in a series of supplier relationships, with this particular region targeted by the Company as a strong base of initial access to raw input hemp flower for processing into 99% pure CBD at the Company’s state-of-the-art production facility.
In December, the US saw the removal of hemp from federal prohibition under the Controlled Substances Act of 1970 (CSA). Company management believes this will have two powerful impacts relevant to the value for shareholders of HempAmericana’s current operational strategy: 1) It will increase the overall market size in terms of end market consumers of CBD products through increased public awareness and reduced cultural stigma attached to cannabis-related products; and 2) it will likely increase the total supply of hemp in the marketplace, thus reducing input costs for CBD production.
Mr. Rosillo continued, “We are going to need thousands of pounds of hemp flower per week to drive our high-capacity operations now that we are on the brink of major full-scale production in Maine, and possibly on the brink of launching our next manufacturing facility on the east coast as well.”
The Company expects this agreement to be formalized within the next two weeks. More information about this key supplier will be released once the agreement has been formalized.
About HempAmericana, Inc.
HempAmericana is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. HempAmericana also owns and operates Union Farm, a high-potency CBD strain development facility located in Union, Maine. The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”. See more at www.hempamericana.com
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review Hemp Americana annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligaton to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state
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