HempAmericana, Inc. (HMPQ) Closes on Strategic Partnership
HempAmericana Expands Operations In Maine With A Zero Waste Facility That Will Bring Value To Its Shareholders
NEW YORK, NY-- (September 11, 2017) - HempAmericana, Inc. ( OTC PINK : HMPQ ) (the Company) is excited to announce that it has begun operations in Maine to extract 100% pure CBD Oil and produce a full spectrum of Supercritical C02 Extracted CBD Products involving no solvents and no added chemicals. The operations are pursuant to the execution of a Shareholders Agreement involving Hempwerk, Inc., the Company, and James Black, an expert and innovator in CBD oil extraction machinery with over a decade of experience in the field.
The initial operation is slated to take the form of a 28,000-square foot primary Zero Waste facility set on 8 acres which will be in full operation by November 2017, with its initial 10L Supercritical CO2 extraction machine for CBD Oil extraction along-side multiple machines used for the creation of Hemp plastics, Hemp building materials (such as Hemp fiber and Hemp wood), Hemp fuel pellets (hemp pellets produce around 2% ash) and various other Hemp products. This operation has a multi-phase expansion plan to scale up volume and capacity. Phase one of the expansion is expected to be in place by the beginning of Q1 2018 with the delivery of its 500L Supercritical CO2 extraction machine, and represent a tremendous increase in the scope of production. The company will pride its self in using all of the Hemp for the variety of items it will produce essentially leaving Zero Waste behind and being eco-friendly on all fronts.
This partnership in Maine will take HempAmericana to new heights. We will be working around the clock to begin production on all fronts by November and have a steady revenue steam from our Maine operation before the New Year, said Salvadore Rossillo, CEO. HempAmericanas new Zero Waste operation in Maine is only the beginning with New York and Kentucky to follow.
The land involved in the operation is currently being farmed for rare seeds but will be converted after this season and dedicated for pure hemp extraction involving a premium hemp strain. This presents an early and potentially lucrative co-product opportunity during the transitional phase, given the extraordinarily high margins involved in rare seed production.
To jump start the scaling process, the primary facility has been designed to accommodate outsourcing by other regional landowners, allowing the Company to act as a co-packer which can bring in anywhere from 3 to 10 million dollars in revenue during this scaling process. The initial scope of production is anticipated to be in the 200-acre range. But this is slated for broad expansion as the operation further scales up, with the potential to reportedly grow into thousands of acres of production area over time.
That is expected to lay the groundwork for a toll processing model of distribution: the Company produces the raw good and partners with a diverse downstream branding chain to take the product to consumers, with royalty revenues flowing back to the Company and its shareholders as more and more local and regional farms participate in capturing the margins involved in the high-quality CBD product marketplace. Management anticipates this model to reduce the expenses and operational burden related to marketing, thus freeing the Company up to aggressively focus on its goal: maximizing the efficiency involved in extracting only the highest quality CBD oil, with no solvents and no chemicals, and eventually emerging as a market leader in the production of supercritical CO2 extracted CBD products.
The industrys projected growth is a compound annual growth rate (CAGR) of 8.2% through year 2020. Hemp is becoming one of the most sought after raw materials. According to Global Natural Fiber Composite Market 2015-2020: Trends, Forecast, and Opportunity Analysis, the demand for more ecofriendly materials from the construction and automotive industries, specifically, has created the surge. DEFRA (Department of Environment Food & Rural Affairs) reported, Almost 1.5 million vehicles included applications for natural fibers such as kenaf, jute, flax, hemp and sisal in combination with thermoplastic polymers such as polypropylene and polyester. The demand for natural fiber composites in North America is projected to continuously increase in the near future on account of significant performance at lower prices of natural fiber composites in automotive and construction applications driven by regulatory standards recommending the use of lightweight and recyclable materials.
HempAmericana is currently in the rolling paper and CBD oil business using the brand name Weed Got Oil. Search Rolling Thunders hemp papers on YouTube for a product demonstration of the Company's papers. The company owns an extraction machine and now plans to become a leader in the CBD oil market by establishing three laboratories for the extraction and research of the oils contained in the hemp plant. HempAmericana also researches, develops and sells products made of industrial hemp. See more at http://www.HempAmericana.net.
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review Hemp Americana annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.