Symbol: TSX.V –
HEMP
VANCOUVER, Sept. 19, 2017 /CNW/ - Hempco Food and Fiber Inc.
(TSX.V: HEMP) ("Hempco" or the "Company") today
provided an update on the Company's operational progress.
Fiscal Year 2017 Gross Sales (all sales numbers in
CAD$)
The company today announced gross sales (unaudited) of
approximately $6.7M for the fiscal
year ended August 31, 2017,
reflecting solid 28% growth over the prior fiscal year (2016:
$5.2M). This growth was fueled
predominantly by international bulk sales, and predominantly growth
in the EU and US markets. Additional growth was generated following
the launch of the Company's PLANETHEMP product line of Consumer
Packaged Goods (CPG), which started selling in multiple countries
including a recent launch in Mexico.
Supporting the Company's pursuit of further growth, Hempco is
currently progressing negotiations with a number of larger
prospective customers.
New Distribution and Sales Contracts
Hempco secured several new distribution and sales contracts for
bulk hemp seed foods and PLANETHEMP Consumer Packaged Goods (CPG)
retail products:
- An agreement was signed with a Mexico-based distributor for the provision of
PLANETHEMP CPG products. Under the terms of the agreement,
the distributor has guaranteed a minimum $200,000 per year in PLANETHEMP CPG products, and
submitted its first Purchase Order for approximately $64,000.
- An agreement was signed with a UK-based ingredient supplier of
bulk hemp protein.
- An agreement was signed with a U.S.-based formulator and
distributor for the supply by Hempco of hemp-based products.
A first purchase order for approximately $35,000 was received.
- The Company's application for the commencement of online sales
in the UK was approved and Hempco will commence servicing this
channel.
HEMPCO Obtains HACCP Certified Producer Status
Following third party inspection of its MacGregor Manitoba hemp seed processing
facility, the Company, together with its local service provider,
has achieved HACCP certified processor status.
Following a two-year implementation program, which included
leasehold improvements and upgrades to double production capacity,
the Company has now obtained a positive outcome of the mandatory
third-party inspection, carried out by TRC, confirming the
Company's compliance with HACCP standards. While Hempco has
operated in compliance with HACCP standards for nearly a year, to
secure contracts with many large customers, a third-party
inspection is required to provide confidence that the Company is
operating at the highest level of quality control standards.
The Company will continue to have spot inspections by the Canadian
Food Inspection Agency (CFIA), further strengthening the standing
of the Company as a trusted supplier.
Hempco now intends to achieve the British Retail Consortium
(BRC) Global Standard for Food Safety, the world's most highly
regarded standards on food safety and quality control. The efforts
to comply with the BRC standards are now being implemented as part
of the Company's production expansion initiatives at its
Nisku, Alberta facility. The
facility is scheduled to be operational by winter 2017/2018.
Stock Option Grant
The Company announces that it has granted 950,000 stock options
(the "Options") to various Directors, officers, employees and
consultants of the Company, at an exercise price of $0.53 per Option. Directors and Officer were
granted 500,000 of these Options. Each Option will have an exercise
term of three (3) years.
Management Commentary
"Obtaining HACCP producer status is an incredibly important
milestone in our development and future growth, as it will allow us
to engage more formally with larger prospect customers who require
this level of compliance," said Charles
Holmes, CEO of Hempco. "We are witnessing positive
momentum in sales and continue to expand our footprint
internationally through new agreements in markets such as the U.S.,
Mexico and the UK. As
announced recently, we have also completed the investment agreement
with Aurora, which, once approved by our shareholders, we believe
will help us further accelerate growth."
About Hempco
For more than 12 years Hempco has been a trusted and respected
pioneer, innovator and provider of premier hemp seed foods. Hempco
is committed to developing hemp foods, hemp fiber and hemp
nutraceuticals, a "tri-crop" opportunity for producers and
processors. Hempco is expanding its processing ability to meet
global demands in a 56,000 sq. ft. facility located at Nisku, Alberta. Hempco's common shares
trade on the TSX Venture Exchange under the symbol "HEMP". Hempco
has grown its business significantly and is generating value and
profits for shareholders.
ON BEHALF OF THE
BOARD
Charles Holmes
Chief Executive Officer
HEMPCO FOOD AND FIBER
INC.
charles@hempcocanada.com
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements in this press
release include the Company's anticipation of further growth, its
expectation that continued spot inspections by the Canadian Food
Inspection Agency will strengthen its standing as a trusted
supplier, its intent to achieve the BRC Global Standard for Food
Safety and its efforts to implement these standards at its
Nisku, Alberta facility, its
expectation that the Nisku
facility will be operational by Winter 2017/2018, and its belief
that the investment agreement with Aurora will be approved by its
shareholders and help accelerate further growth. These statements
are only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Companies
are under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
The TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Hempco Food and Fiber Inc.