GBHPF - Global Hemp Group Closes on Strategic Industrial Property for Its Colorado Hemp Agro-Industrial Zone
(TheNewswire)
Vancouver, BC - TheNewswire - June 22, 2021 - GLOBAL HEMP GROUP INC.(“GHG” or the “Company”) ( CSE:GHG ) / ( OTC:GBHPF ) / ( FRANKFURT:GHG ) / (CNSX:GHG.CN) is pleased to announcethat it has closed the transaction to acquire a strategiccommercial/industrial property in northwest Colorado ( asannounced on May 10, 2021 ) . GHG has advancedUS$150,000 as a down payment on the property, with three equalpayments equally spaced over the next 18 months, for a totalacquisition price of US$1.4 million.
This 44 acre multi-use property will be the site of theHemp Agro-Industrial Zone (HAIZ) manufacturing facility which willinitially be focused on hemp-based building materials utilized at theCompany’s initial Planned Unit Development innorthwest Colorado. Over time, the Company expects to expand themanufacturing focus to encompass the use the fibre from the hempplant, in addition to the hemp hurd that will be used in the buildingmaterials. The Colorado HAIZ is an exciting opportunity to implementthe Company’s vision of building an entire “green” and“sustainable” community utilizing and showcasing hemp-basedbuilding materials and as many green economy technologies as possible,to attract and support green community stakeholders, Government andindustry support and partnerships.
Further to the GHG’s announcement on May 17, 2021regarding the securing of key annexed and entitled residential developmentland , the Company is pleased toreport that the parties have now completed all appropriate duediligence on the property. As provisioned in the contract, theUS$250,000 earnest money deposited with the title company has becomenon-refundable and the purchase has been scheduled for closing. Finalpayments for the property are payable on or before December 11, 2021.The final purchase price for the property will be disclosed by theCompany at the appropriate time, accordingly a further press releaseshall be issued as required.
With the advancement on the above two properties,t he Company is now working with Land Planningand Engineering firms to develop the Company’s vision for theproject. Initial meetings have taken place with the City PlanningDepartment to discuss the project and establish specific designparameters for approval.
The Company has cancelled the previously announced (see news release of May 17,2021 for details) non-brokered Unsecured Loan,for gross proceeds of up to $750,000.
In its place, the Company announces that is proceedingwith the support of private corporate lenders, with a financing of upto $1.5 million of non-brokered 7% Secured Convertible Debentures. TheDebenture has a Maturity Date of September 8, 2023 and shall bearinterest at the rate of 7.0% per annum, payable for the periodcommencing on the Closing Date and ending on the earlier of theMaturity Date or the date the Debenture is converted into units(“Units”). Minimum subscription per corporate lender will be$25,000. A finder’s fee may be payable to eligible finder’s oragents per CSE guidelines.
The Company is pleased to announce that it has receivedsubscription and proceeds to the above non-brokered Secured Debentureplacement for total gross proceeds of $500,000 and will proceedimmediately to closing this first tranche of the Debenture. TheCompany anticipates closing of the full amountof the Debenture with corporate lenders in two additional tranches onor before July 30, 2021.
Each $1,000 principal amount of Debenture isconvertible, at the option of the holder, into Units consisting of20,000 common shares of the Issuer (each a “Common Share”), issuedat a price of $0.05 per Common Share (the “Conversion Price”), and20,000 detachable common share purchase warrant (each a“Warrant”), each Warrant entitling the holder to acquire oneadditional Common Share an exercise price of $0.05 at any time afterthe date of issuance and prior to the close of business on the lastbusiness day prior to the Maturity Date.
The warrants will be listed for trading on the CanadianSecurities Exchange (the “CSE”) and will have identical terms tothe currently listed warrants trading under the ticker symbol GHG.WT.In the event that the Issuer's common shares trade on the CSE (or suchother exchange on which the common shares may be traded at such time)at a volume weighted average price of $0.12 per common share or morefor a period of ten (10) consecutive trading days, the Issuer may, inits sole discretion, accelerate the expiry date of the warrants bygiving notice to the holders thereof and, in such case, the warrantswill expire on the 30th day after the date on which such notice isgiven to the holder by the company.
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About Global Hemp Group Inc.
Global Hemp Group Inc. ( CSE: GHG / OTCQB: GBHPF / FRANKFURT: GHG ) is focused on a executing a multi-phased strategy of becoming aleader in the development and promotion of the industrial hemptechnology industry in the United States and beyond. The Company iscurrently headquartered in Vancouver, British Columbia. The currentphase of the strategy focuses on the development of “sustainable”and “green” value-added industrial hemp products utilizing theprocessing of the entirety of the hemp plant for multi-merchantableapplications, as envisioned to be showcased in the Colorado Hemp Agro-Industrial Zone (HAIZ)project. This HAIZ will be the epicentre of a futuristic“Sustainable/Renewable and Regenerative City model the Companyintends to “brand” and duplicate sharing this model with theWorld. To support and innovate the HAIZ further, Global Hemp Group hasestablished a Research and Development Division to actively pursue thedevelopment of Intellectual Property that can be patented forimplementation locally and for partnerships Globally. The Division isled by Prof. Víctor M. Castaño, Ph.D . from theNational Autonomous University of Mexico, a highly recognized leaderin areas of applied science and technology. The R&D team brings anamazing wealth of knowledge and experience in multiple disciplines andwill initially focus on development of Environmentally-FriendlyConstruction Materials, Nanofertilizers and Enhanced Extraction fromHemp.
For Further Information ContactGlobal Hemp Group
Curt Huber, President
Tel: 778-726-2900
Cautionary NoteRegarding Forward Looking Statements
Certain information set forth inthis news release may contain forward-looking statements that involve substantial known andunknown risks and uncertainties. These forward-looking statements aresubject to numerous risks and uncertainties, certain of which are beyond the control of GlobalHemp Group Inc., including, but not limited to the impact of general economic conditions, industryconditions, volatility of commodity prices, currency fluctuations,dependence upon regulatory approvals, the availability of futurefinancing and exploration risk, the legality of cannabis and hemp.Readers are cautioned that the assumptions used in the preparation of such information, althoughconsidered reasonable at the time of preparation, may prove to beimprecise and, as such, unduereliance should not be placed on forward-looking statements. Except as required by law, GlobalHemp Group Inc. disclaims any intention and assumes no obligation toupdate or revise any forward looking statements to reflect actualresults, whether as a result of new information, future events,changes in assumptions, changes in factors affecting such forwardlooking statements or otherwise.
The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.
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