GHG - Global Hemp Group Concludes Transaction Securing Control over Strategic Water Infrastructure Assets in Colorado
(TheNewswire)
Vancouver, BC - TheNewswire - May 3, 2021- GLOBAL HEMP GROUP INC. (“GHG” or the“Company”) ( CS NSX :GHG . CN) ( OTC:GBHPF ) ( FRANKFURT:GHG ) is pleased to announce that having all“Conditions Precedent” met and additional required documentationhaving been executed, the Company has now finalized the acquisition ofWestern Sierra Resource Corporation (WSRC) (OTC: WSRC) Series APreferred shares (WSRC Prefs) as outlined in the Definitive Agreementexecuted with Prescient Strategies Group, LLC (“PSG”), in aprivate, third party transaction (see news releases of February8 and March5 , 2021 for furtherdetails) .
The Company has acquired from PSG 11,006,440 WSRCPrefs, having voting rights of 100 votes per share, by issuing11,006,400 GHG Class B Preferred shares (“GHG Prefs”), as morefully outlined in the Company’s news release of January 18,2021 . As part of this transaction, GHG willalso issue PSG 15,000,000 common share purchase warrants (the “GHGWarrants”). The GHG Warrants will be exercisable for a period offive (5) years at a price per GHG Warrant of CAD$0.05 pershare.
Completion of this transaction paves the way forcreation of the Colorado Hemp
Agro-Industrial Zone (“HAIZ”) – a SustainableGreen Enterprise in Northwest Colorado and facilitates the Company’scapital formation opportunities (a Senior Secured Debt Facilityutilizing the water assets as collateral) and subsequent growththrough completion of a series of targeted acquisitions strategic foraccumulation of long-term real estate assets and enhanced valuethrough expansion of water infrastructure.
As part of the Definitive Agreement, the Company willalso acquire an additional 8,868,560 WSRC Prefs from PSG that arecurrently pledged as collateral to secure US$3,842,269 loans to WSRC.These WSRC Prefs will also be acquired by GHG upon the restructuringWSRC’s existing debt (the “WSRC Debt”) by way of, but notlimited to, the consolidation, refinance or extension of the existingWSRC Debt (the “WSRC Debt Restructuring”). Upon completion of theWSRC Debt Restructuring, the WSRC Debt will have a maturity extendedto a minimum of three (3) years, with the objective of replacingexisting notes and releasing the WSRC Prefs as collateral.
The transaction provides the Company with control ofWSRC’s extensive existing water infrastructure developed over thelast 15 years and currently valued at more than +US$40 Million. Theavailability of these water assets is a key resource in thedevelopment of the Colorado HAIZ, which is being developed under thebanner of Innovative Hemp Technologies (“IHT”), a wholly ownedsubsidiary of Global Hemp Group. IHT’s core objective is to develop“green” and “affordable” homes in a Planned Unit Developmentutilizing hemp-based construction materials to meet historical pent-updemand in the area. The project will maximizethe beneficial use of the water assets through all aspects of theHAIZ. This will complement the project’sonsite development of largescale irrigation and cultivation ofindustrial hemp and the manufacture of hemp-based constructionproducts and textiles. The project will significantly expand theexisting water rights and infrastructure assets while generatingmultiple revenue streams for the Company. In addition, the projectwill create s ignificant employment opportunitiesin the region.
The Company also announces that it has grantedincentive stock options to Officers, Directors and Consultants topurchase up to 3,000,000 common shares of the Company at an exerciseprice of $0.05 per share. The options have a term of five yearsexpiring May 3, 2026 and shall vest in immediately.
T he Company recently held itsAnnual General Meeting. All items voted on were approved by theshareholders. Curt Huber, Dr. Paul Perrault, Jeff Kilpatrick andMichel Lebeuf were re-elected as Directors of the Company, with CurtHuber being reappointed President and CEO, and Sebastian Tang beingreappointed as CFO.
Global Hemp Group has recentlychanged its phone number.
To contact Investor Relations, pleasecall 778-726-2900.
Like us on Facebook:
Follow us on Instagram: https://www.instagram.com/hemp_global/
Follow us on Twitter:
Connect with us on LinkedIn:
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG / OTC: GBHPF /FRANKFURT: GHG), is focused on a multi-phased strategy to build astrong presence in the industrial hemp industry the United States. TheCompany is headquartered in Vancouver, British Columbia, with hempcultivation operations in the state of Oregon. The current phase ofthe strategy focuses on the development of “sustainable” and“green” value-added industrial hemp products utilizing theprocessing of the entirety of the hemp plant, as envisioned 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
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 orotherwise.
The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.
Copyright (c) 2021 TheNewswire - All rights reserved.