Canbiola Becomes Vertically Integrated with its Joint Venture with NY - SHI and Shi Farms
July 22 2019 - 10:46AM
InvestorsHub NewsWire
Canbiola Becomes Vertically Integrated with its Joint
Venture with NY – SHI and Shi Farms
Expands into
Hemp Cultivation &
Processing
HICKSVILLE, NY --
July 22, 2019 -- InvestorsHub NewsWire -- Canbiola,
Inc. (OTCQB:
CANB) (“Canbiola” or the “Company”), a developer, manufacturer
and seller of a variety of Cannabidiol (Hemp)-based products, such
as oils, creams, moisturizers, chews, isolate, gel caps, and
concentrate, announced today that it and its wholly-owned
subsidiary, NY Hemp Depot LLC, have officially formed a joint
venture with NY – SHI, LLC (“NY – SHI”) and EWSD I LLC dba Shi
Farms (“Shi Farms”), a proven existing
hemp grow and processing company, to aggregate and purchase
fully-grown, harvested industrial hemp from third-party farmers in
the State of New York.
The joint venture will operate the NY Hemp Depot Facility for hemp
processing in the State of New York. Additionally, it may also sell
feminized seeds, clones, and additional materials required to grow
industrial hemp and maximize CBD potency. NY – SHI’s cultivating
license will be amended to add the NY Hemp Depot Facility. The NY
Hemp Depot Facility will empower and enable local farmers, both
indoor and outdoor, with technologies, products, and services to
help them grow their businesses and revenues. The joint
venture plans to aggregate and purchase fully-grown, harvested
industrial hemp from farmers in New York, who are growing such
industrial hemp on their own properties and, in the future, to
solicit farmers to grow industrial hemp on behalf of the joint
venture under NY – SHI’s cultivating license.
NY Hemp Depot LLC, a wholly-owned subsidiary of Canbiola, has full
and complete discretion to manage and control the joint
venture. NY Hemp Depot LLC is providing a building for the
operation of the NY Hemp Depot Facility, location services,
management, and day-to-day operations, and services for the
recruitment of farmers.
Shi Farms, which is a dba for EWSD I, LLC, is a licensed Hemp Cultivation Operation under the
Colorado Department of Agriculture, operating a 300-acre farm and
40,000 square feet of research greenhouses. NY – SHI is providing
to the joint venture technical expertise regarding the growth and
cultivation of industrial hemp, growing technology and expertise,
use of its cultivating license that will be amended to add the NY
Hemp Depot Facility, and services for the recruitment of farmers.
NY – SHI agreed to sell certain products to the joint venture,
including feminized hemp seeds and/or clone plants, at the
prevailing market price for such products at the time of the sale,
for the joint venture to sell to farmers.
Canbiola also has the right to acquire certain isolate
from Shi Farms at the cost of processing the isolate from biomass.
The biomass would be aggregated and then shipped to Shi Farms’
facility in Pueblo, Colorado, where it would be processed by Shi
Farms’ other joint-venture partner, Mile High Labs, Inc. The
amalgamation and processing will be done by Mile High Labs’ The
Monster (https://www.milehighlabs.com). Shi Farms granted
Canbiola’s wholly-owned subsidiary, NY Hemp Depot, LLC, a minority
interest in the one and one-half percent payments due to Shi Farms
in connection with its agreements with Mile High Labs, Inc.
Canbiola Chief Executive Officer Marco Alfonsi,
commented, “This joint venture with Shi Farms is a major milestone
for Canbiola, as it vertically integrates our positioning and
capabilities in the federally legal hemp market. Shi Farms is a
trusted, proven, and top-rated CBD wholesaler, and provides us with
a cultivation license for the state of New York. This deal allows
us the independence from the ever-moving
and changing isolate and distillate markets. Canbiola
typically buys 150 kilos of isolate per year and this relationship
will enable us to save thousands of dollars per kilo. We believe
this is a robust growth opportunity for Canbiola and with Shi Farms
as our partner, gives us the scale and flexibility to increase our
revenue in a profitable manner.”
About Shi Farms[1]
Shi Farms, which operates as a dba for
EWSD I, LLC, is a licensed Hemp Cultivation Operation under the
Colorado Department of Agriculture, located in Pueblo,
Colorado. Shi Farms is a vertically-integrated hemp CBD
company that owns and operates a 300-acre farm and 40,000 square
feet of research greenhouses. In addition to its corporate-owned
land, Shi Farms has launched its Shi Cooperative program to help
farmers around the country cultivate hemp. Under its
Co-operative program, Shi Farms has expanded into Colorado, as well
as Oklahoma, Nevada, and New York.
For more information about Shi Farms, please visit https://www.shifarms.com.
About Canbiola, Inc.
Canbiola, Inc. (OTCQB:
CANB) is a developer, manufacturer, and seller of a variety of
Cannabidiol (Hemp) based products such as oils, creams,
moisturizers, chews, isolate gel caps and concentrates. Canbiola
has developed its own line of proprietary products as well as
seeking synergistic value through acquisitions in the CBD and the
medical cannabis industry. Cannabis is currently federally illegal
and has legalized for medical purposes in some form in a limited
number of states, but pure CBD products are legal in all 50 states.
Hemp CBD is the non-psychoactive component (No THC) used for
treatment of pain, inflammation, and wellness programs. For
more information about Canbiola, Inc., please visit https://canbiola.com.
Additionally, Canbiola’s wholly-owned subsidiary Pure Health
Products, based in Lacey, WA, is its prime development laboratory
and production facility. Canbiola’s Duramed division has
recently rolled out a durable medical device via its Doctor network
to treat patients with injuries via application of an in-home
ultrasound sustained acoustic device (SAM) for pain and
inflammation reduction.
Forward-Looking
Statements
Forward-looking statements and risks
and uncertainties discussed in this press release contain
forward-looking statements. The words “anticipate,” “believe,”
“estimate,” “may,” “intend,” “expect,” and similar expressions
identify such forward-looking statements. Expected, actual results,
performance, or achievements could differ materially from those
contemplated, expressed, or implied by the forward-looking
statements contained herein. Forward-looking statements are subject
to a number of risks and uncertainties, including but not limited
to, risks and uncertainties associated with, among other things,
the impact of economic, competitive, and other factors affecting
our operations, markets, products, and performance. The matters
discussed herein should not be construed in any way, shape, or
manner of our future financial condition or stock price.
Follow Canbiola on:
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Instagram @canbiola.inc or @canbiola_cbd or @canbiola_medical_cbd
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Investors and Media:
IR@canbiola.com
(516) 595-9544
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