In late February, the company received a $30 million investment from international cannabis business, SOL Global Investments Corp., to begin a retail hemp brand in late February, and quickly got to work setting up its flagship store on Jackson Avenue.
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.
Marijuana Company of America will receive an 80-percent return of net profits for the JV on an ongoing basis, as well as a long-term lease on the property with favorable lease terms. The project includes up to 500 usable acres of land in California’s Riverside County that has sufficient water and power and is specifically suited for large-scale cultivation. The company is in the process of sourcing the highest quality seeds that will yield a high percentage of CBD with legally compliant low levels of THC. It is projected that each acre will produce 2,500 pounds of hemp biomass. Based on prevailing fair market rates at this time, the biomass can be sold for approximately $35 a pound. If the company processes the biomass as it intends to do, at least in part, the biomass will produce a significantly higher financial return. Additionally, the property is equipped with several large structures that are suitable for the storage and drying of the hemp plants. A highly experienced cultivation team has been engaged to manage the operations and cultivation of the farm.
Starbuds Medical carries more than 31 kinds of hemp flower, sourced from all over the country. Syrrakos is also a hemp grower and grows the majority of his flowers for his own Starbuds Medical brand in an indoor operation with a packaging facility. “You get a better quality product growing indoors versus outdoors,” he explains. “Outdoors, you’ve got all elements and animals getting at the plants. Indoors, you can control the environment, the pH levels, nutrients and humidity level.”
Inslee’s move came nearly a year after Seattle City Attorney Pete Holmes, working with Mayor Jenny Durkan, enacted a plan to clear more than 500 past cannabis convictions within the city’s municipal court system. Holmes’s plan took months to work its way through the city’s judicial system. In September, Seattle Municipal Court judges approved the plan, which would wipe away the cannabis convictions of up to 542 people who were sentenced for offenses between 1996 and 2010. (Seattle stopped prosecuting low-level cannabis offenses after 2010.)
The hemp operation will pay its workers about $15 an hour in order to give them a chance to earn enough money to restart their lives when they leave the program. The DOC will pay for food and housing until the workers begin receiving paychecks, and they will then be required to pay for their room and board. That means a savings to the state of about $74 per day per inmate once the workers start paying their own way.