IGC to Participate in Arizona’s Industrial Hemp Program
June 13 2019 - 5:32PM
Business Wire
India Globalization Capital, Inc. (NYSE: IGC) announces that its
subsidiary Holi Hemp’s application has been approved and that it
has executed agreements with operators to grow and harvest
industrial hemp under the terms and conditions of the Industrial
Hemp Program developed by the Arizona Department of Agriculture
(AZDA).
Our strategy is to ensure the highest quality output by
controlling the production of important cannabinoids like
Cannabidiol (CBD) and Cannabigerol (CBG) among others, both as a
supplier and to support our products such as HyalolexTM and Holi
HempTM. The establishment of a grow operation platform is an
important step in achieving these objectives and sets the
foundation for CBD based brand development, fulfilment, and
growth.
“We selected Arizona after much analysis including assessing
climate, cost of labor, political environment, local support,
logistics, market penetration, and competition, among other
factors. IGC intends to employ a strategy to plant year-round that
reduces the amount of requisite acreage while taking full advantage
of the hot weather to land dry the bio-mass. Our plan will focus on
about 100 acres for extraction with additional acreage set aside
for R&D initiatives. We anticipate having an extraction
facility built in time for the November 2019 harvest but various
factors, for example building permits, could cause a delay. If we
are able to execute on our plans, one acre of hemp can potentially
yield about 2,000 Kgs of dry flower that can potentially be
extracted and refined into approximately 50 Kgs of THC-free CBD
distillate with a current market value of $5,500 to $7,000 per
Kg.,” said Ram Mukunda, CEO.
Hemp is a variety of the cannabis plant that has relatively high
levels of the cannabinoid CBD, and levels of the cannabinoid
tetrahydrocannabinol (THC) below 0.3% on a dry weight basis. The
2018 Farm Bill signed into law in December 2018 legalized the
growing and processing of industrial hemp. The risks to the process
of producing the end product include, among others, seed selection
and performance, inclement weather like hail or heavy rain, and the
methodology used in the extraction and refinement process. Current
pricing may not be indicative of future pricing as it depends on
supply and demand. Our rationale for being as vertically integrated
as feasible, allows us to control various factors including and
especially the cost of production.
About IGC:
IGC has two lines of business: infrastructure and plant and
cannabinoid derived products. The company is based in Maryland,
U.S.A. Our website: www.igcinc.us. Twitter @IGCIR
Forward-looking Statements:
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are based largely on IGC’s
expectations and are subject to a number of risks and
uncertainties, certain of which are beyond IGC’s control. Actual
results could differ materially from these forward-looking
statements as a result of, among other factors, competitive
conditions in the industries, in which IGC operates, failure to
commercialize one or more of the products, services and
technologies of IGC, general economic conditions including pricing
for products that are less favorable than expected, the Federal
Food and Drug Administration’s (FDA) general position regarding
hemp based products and our products in particular, and other
factors, many of which are discussed in our SEC filings. In light
of these risks and uncertainties, there can be no assurance that
the forward-looking information contained in this release will in
fact occur.
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version on businesswire.com: https://www.businesswire.com/news/home/20190613005788/en/
Claudia Grimaldi301-983-0998
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