TSX-V: HEMP
VANCOUVER, April 25, 2019 /CNW/ - Hempco Food and Fiber Inc.
("Hempco" or "the Company") (TSX-V: HEMP) today announced that it
has entered into a loan agreement (the "Loan Agreement")
with Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) ("Aurora")
pursuant to which Aurora has agreed to lend to Hempco up to
C$4 million (the "Loan"). The
Loan Agreement has been entered into as part of the transaction
(the "Transaction") agreed to by both Aurora and Hempco (the
"Parties") in a binding letter agreement announced by the
companies in a joint press release dated April 16, 2019, and providing for the purchase,
by Aurora, of all of the issued and outstanding shares of Hempco
not already owned by Aurora. The Loan will be secured by a
Guarantee from Hempco's wholly-owned operating subsidiary, Hempco
Canada Superfoods Inc., and a General Security Agreement pledging
all of Hempco's assets.
The Loan is intended as a bridge loan to fund completion of
Hempco's 56,000 sq ft, 2.9 million kg-per-year, state-of-the-art
hemp processing facility in Nisku,
Alberta, and to provide Hempco with working capital for
operations while the Parties work towards completion of the
Transaction contemplated in their binding letter agreement.
Principal amounts advanced pursuant to the Loan Agreement are to
bear interest at the rate of 8% and must be repaid by January 15, 2021. Under the terms of the Loan
Agreement, Aurora has the discretion to halt advances of loan
proceeds at any time, in its sole but reasonable discretion.
About Hempco
For more than 12 years Hempco has been a trusted and respected
pioneer, innovator and provider of quality hemp-based foods, hemp
fiber and hemp nutraceuticals. Hempco produces and markets the
brands PLANET HEMP SUPERFOOD™ and PRAISE HEMP™, hemp-based foods
and nutritional supplements for people and animals. 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".
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.
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 Hempco's
anticipation that the Loan will fund completion of its facility at
Nisku and fund operating capital
needs pending completion of the Transaction. These statements are
only predictions and are not guarantees of future
performance; therefore, undue reliance should not be placed on
them. Such forward-looking statements necessarily involve known and
unknown risks and uncertainties, which may cause actual performance
and financial results in future periods to differ materially from
any projections of future performance or result expressed or
implied by such forward-looking statements. 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.
Hempco is 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.
On behalf of the Board of Directors,
HEMPCO FOOD AND FIBER INC.
Diane Jang
CEO
SOURCE Hempco Food and Fiber Inc.