(TheNewswire)
Vancouver, BC - TheNewswire - August 23, 2021 - GLOBAL HEMP GROUP INC. (“GHG” or the“Company”) ( C NSX :GHG . CN) ( OTC:GBHPF ) ( FRANKFURT:GHG ) announces that in accordance with targeted objectives for theHEMP AGRO-INDUSTRIAL ZONE (HAIZ) project, a third acquisition contractfor 664 acres of contiguous land is now fully executed. This bringsthe current total land assemblage to 874+ strategic acres closed orunder definitive contract by the Company for development of the HAIZproject in the northwestern Colorado town of Hayden.
The Company’s first acquisition was the 44+ acreannexed and zoned industrial/commercial site ( see the Company’snews release of May 10 for further details ) as the home for acentralized processing/manufacturing center at its HempAgro-Industrial Zone (HAIZ) closed on June 15, 2021. The Company’ssecond acquisition was a 166+ acre annexed property for development ofaffordable housing, now under “hard” contract pending closing. This third contractencompassing 664 acres of the total 874-acre assemblage will expandGHG’s available hemp farming acreage in the near term and willprovide for the phased construction of affordable homes in the contextof a Planned Unit Development (PUD) subject to approval by the Town ofHayden. This 664-acre property is contiguous tothe 166 acre annexed land parcel ( see the Company’snews release of May 17 for further details ) , making 830 acresavailable for the development of affordable homes over the Company’s20+ year development horizon for the project.
In collaboration with Western Sierra ResourceCorporation (OTC:WSRC) this “vertically integrated” projectcontemplates the beneficial use of substantial existing waterresources to irrigate and cultivate industrial hemp; process andutilize hemp in the on-site manufacturing of green renewableconstruction products; and finally, to build affordable carbonneutral/carbon negative housing – all in one location under theCompany’s master plan. The Company’s vision for the HempAgro-Industrial Zone complex on the first 44-acre site recentlyacquired, is to establish a “showcase” venue for itsvendor/partners in agriculture, research and development, lightmanufacturing, a range of related commercial products and greentechnologies, and housing – all of which is designed to complimentthe town of Hayden by further generating employment opportunity andincreasing business revenue for the community.
Earnest money in the amount of US$200,000 will bedeposited to the title company on or before August 31, 2021. Subjectto completion of acceptable due diligence on or before September 30,2021, the earnest money will become non-refundable, and the purchasewill be scheduled for closing, with final payments for the propertypayable on or before April 1, 2022.
Land Planning and Engineering Firmshave been engaged by the Company which are now finalizing plans for alarge-scale warehouse, decortication facility, manufacturing facility,showroom with administrative offices, and model homes. Greenhouses andassociated laboratory facilities for research and development willalso be part of the land-use design plan.
To fund this acquisition and the ongoing development ofthe Colorado Green Community, the Company announces that it isproceeding with a financing of up to $1.0 million of non-brokered 7.0%Secured Convertible Debentures with continued strong and reliablesupport of private corporate lenders. The Debentures will have aMaturity Date of September 8, 2023 and shall bear existing interest atthe rate of 7.0% per annum, payable for the period commencing on the Closing Date and ending on the earlier of theMaturity Date or the date the Debenture is converted into units(“Units”). An initial closing of this Secured ConvertibleDebenture financing is expected prior to August 31st with a second andfinal closing on or about Sept15th. A finder’s fee may be payable toeligible finder’s or agents per CSE guidelines.
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.
On July 12, 2021, the Company announced that it hadclosed the final tranche of a Secured Convertible Debenture withidentical terms as above. Todate, the holders of the previous Secured Convertible Debenture issuehave already converted $1.2 million of the original $1.5 millionissued per the terms above leaving the company virtually debt freefrom this issue.
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About Global Hemp Group Inc.
Global HempGroup 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 isheadquartered in Vancouver, British Columbia. The current phase of thestrategy 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 will be showcased in the Colorado Hemp Agro-Industrial Zone (HAIZ) project.
To further support and innovate the HAIZ, Global Hemp Group hasestablished a Research and Development Division to activelypursue the development of Intellectual Property that can be patentedfor implementation at its projects and beyond. The Division is led by Prof. Víctor M. Castaño, Ph.D. from the NationalAutonomous University of Mexico (UNAM), a highly recognized leader inareas 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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