Global Hemp Group Inc. (“GHG” or the “Company”) (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 for the extraction of cannabinoids (CBD, CBG, CBN & CBC) to create a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. Under this first phase of the strategy, the Company began cultivating hemp at projects in northeast New Brunswick in 2017 and Scio Oregonin 2018and is targeting to greatly expand the acreage under cultivation in both these regions over the next three years.
Scio, Oregon CBD Hemp Project
GHG and its Joint Venture Partner Marijuana Company of America (OTC: MCOA) have acquired a 109 acre farm in Scio Oregon to cultivate high yielding CBD hemp. The US$2.2 mil investment will produce 33 acres of hemp from an orchard style cultivationin 2018.In addition to the outdoor cultivation, the Partners are installing approximately 19,000 sq. ft. of greenhouse space. The greenhouses will initially be used to dry this year’s harvest, then used to grow clones for next season’s outdoor crop. The Partners are considering expanding the greenhousesto begin a perpetual harvest model, in addition to the yearly outdoor cultivation.This dual strategy will optimize revenue generation throughout the year by minimizing the impact of a single harvest in October when most other hemp farms harvest their crops and prices typically soften.
For the current harvest, Management is presently evaluating offtake agreements with extraction companies for the biomass produced at the farm.
New Brunswick Hemp Project
GHG and MCOA have been partnerson the New Brunswick Hemp Project since its inception in 2017. This year four farmers were contracted
to grow 125 acres of industrial hemp in a field crop style in the region. Planting began in early May and harvest is expected to be complete by early October.
As the biomass is harvested, it is dried (see picture below)and will be stored until after the implementation of the Cannabis Act in Canada on October 17, 2018, at which time the biomass can be legally sold for extraction. Management is currently in discussions with potential off-takers for selling the dried biomass in bulk, as well as exploring potential strategies for toll extraction and the marketing and distribution of processed and refined oils.