GBHPF - Global Hemp Group Completes Definitive Agreement to Acquire Control Over Strategic Water Infrastructure Assets in Colorado
(TheNewswire)
Vancouver, BC - TheNewswire - February 8, 2021 - GLOBAL HEMP GROUP INC. (“GHG” or the“Company”) (C NSX :GHG. CN) ( OTC:GBHPF ) ( FRANKFURT:GHG) ispleased to announce that it has signed the Definitive Agreement withPrescient Strategies Group LLC (“PSG”) to acquire all of itsWestern Sierra Resource Corporation (OTC: WSRC) (“WSRC”) PreferredA Class Share holdings (“WSRC Prefs”) in a private, third partytransaction.
Closing of the transaction is expected to be on orabout February 9, 2021 upon fulfillment of certain ConditionsPrecedent, including:
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- WSRC restructuring certain unsecured debt prior tothe issuance of the GHG Prefs;
- GHG providing the necessary initial payments tocomplete the transaction and other Debt Restructuring (completed).
For complete details of the transaction, please referto the Company’s news release of January 18, 2021. As soon aspracticable, each party shall provide all necessary information anddocumentation to the Canadian Securities Exchange (the“CSE”).
The resulting acquisition of these WSRC Prefs will give GHG controlover WSRC, and specifically its strategic water infrastructure assetsthat will be an integral part of the Company’s Colorado Hemp-AgroIndustrial Zone (“HAIZ”) project. Documented historical valuationsof the 4,000 acre feet of water rights and associated infrastructureare based on 2013 and 2015 MAI appraisals and engineering reports,which collectively support a value of US$40,000,000 or higher. GHG hascontracted a third party valuation of this initial assessment value tosupport such appraisal.
The Colorado HAIZ will be developed under the banner ofInnovative Hemp Technologies (“IHT”). IHT’s core objective; todevelop “green” and “affordable” homes in a Planned UnitDevelopment (“PUD”) utilizing hemp-based construction materials tomeet historical pent-up demand in the area, which will includedevelopment of large scale irrigation and cultivation of industrialhemp, and the manufacture of hemp-based construction products andtextiles. This will significantly expand the existing water rights andinfrastructure assets while generating multiple revenue streams forthe Company.
By utilizing a campus setting like that of the HAIZ,the Company will efficiently implement these vertically integratedfunctions (water, agriculture, processing, housing). Proven industryprofessionals have been engaged to work alongside IHT’s managementin the areas of agriculture, R&D, manufacturing, and constructionto achieve the Company’s objectives.
Execution of the HAIZ project will create substantialshareholder value through the incremental introduction of additional(multiple) revenue streams to meet IHT’s objectives and set GHG on apath to become a leader in sustainable hemp-based “green”construction in the United States. The Colorado “HAIZ” will becomea “showcase” project to demonstrate “green” hemp constructionproducts and technologies for third-party offtake and for replicationin other suitable U.S. markets.
The project will leverage the existing water rights andinfrastructure to turn “dry land” farming acreage into irrigatedland with valuable water rights that can subsequently be used todevelop “affordable housing” and high value agricultural cropssuch as industrial hemp. GHG’s vision is to take the hemp grownonsite and replace as much of the conventional building materials usedat the project with sustainable, hemp-based building materials used inthe housing development. This project contemplates a 25-yearbuild-out. The luxuries of a long-term project with demonstrably highdemand are:
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a) economies of scale;
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b) opportunity to implementlearned efficiencies;
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c) opportunity to continuallyfine-tune product offerings though intimate familiarity with aspecific market;
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d) access to new marketsstemming from other by-products of the hemp processing, such as fibreand microfibre.
These elements combined with predictably increasingprices and diminishing competition over the project term are likely toresult in improved profitability year-over-year.
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Global Hemp Group Inc.(CSE: GHG / OTC: GBHPF / FRANKFURT: GHG), is focused on a multi-phasedstrategy to build a strong presence in the industrial hemp industrythe United States. The Company is headquartered in Vancouver, BritishColumbia, with hemp cultivation operations in the state of Oregon. Thecurrent phase of the strategy focuses on the development of“sustainable” and “green” value-added industrial hemp productsutilizing the processing of the entirety of the hemp plant, asenvisioned in the Colorado Hemp Agro-IndustrialZone (HAIZ) project. In addition, GlobalHemp Group has established a Research and Development Division toactively pursue the development of Intellectual Property that can bepatented and implemented in the hemp and/or building industry, and inparticular at Company’s Colorado HAIZ. The Division will be headedby Prof. Víctor M. Castaño,Ph.D . from the National AutonomousUniversity of Mexico, a recognized leader in areas of applied scienceand technology. The R&D team brings an amazing wealth of knowledgeand experience in multiple disciplines and will initially focus ondevelopment of Environmentally-Friendly Construction Materials,Nanofertilizers and Enhanced Extraction from Hemp.
For FurtherInformation Contact Global Hemp Group
Tel:424-354-2998
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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