Canbiola and
Shi Farms Execute Letter of Intent to Form Joint Venture for Hemp
Cultivation & Processing
Plans
to Open a NY Depot for Hemp Cultivation
HICKSVILLE, NY
-- June 12, 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
his entered into a non-binding Letter of Intent (the "LOI") with
Shi Farms, Inc. ("Shi Farms"), a
licensed Hemp Cultivation Operation under the Colorado Department
of Agriculture, operating a 300-acre farm and 40,000 square feet of
research greenhouses to grow, cultivate, accumulate and process
hemp in New York State under a license from Shi
Farms.
For
more information about Shi Farms, please visit https://www.shifarms.com.
Pursuant
to the LOI, Canbiola, and
Shi Farms plan to create a joint venture to develop a "depot model"
for hemp processing in New York ("NY Depot"). Canbiola would manage
and direct the NY Depot, where fully grown hemp harvested by
third-party cultivators would be purchased and stored by the NY
Depot. The raw material (biomass) would be aggregated and then
shipped to Shi Farms' facility in Pueblo, Colorado, where it would
be processed by the Shi Farms' other joint-venture partner, Mile
High Labs.
Canbiola Chief
Executive Officer Marco Alfonsi, commented, "This proposed joint
venture is very exciting for Canbiola and its shareholders, as it
would vertically integrate our positioning and capabilities in the
now federally legal hemp market. Shi
Farms, a trusted and top-rated CBD wholesaler, will provide
technical expertise, availability of seeds and clones, and a
cultivation license for the state of New York which Shi presently
owns, which license will be used for multiple cultivation locations
for the NY Depot. We believe this is a robust growth opportunity
for Canbiola, and with Shi Farms as our partner, it would give us
the scale and flexibility to increase our revenue in a profitable
manner. We look forward to working with Shi Farms and launching
this joint venture partnership by the end of July."
The
LOI is non-binding and its terms are subject to the parties
entering a binding definitive agreement memorializing the terms of
the agreement. The parties expect to enter into the definitive
agreements within thirty (30) days from the date of the
LOI.
About Shi Farms
Shi
Farms is a licensed Hemp Cultivation Operation under the Colorado
Department of Agriculture, proudly located in Pueblo, Colorado. Its
dedicated team operates its flagship 300-acre farm and 40,000
square feet of research greenhouses.
Scaling
quickly from its pilot harvest in 2017, it planted and harvested
100 acres in 2018. With cooperative land farmed in excess of 200
acres, Shi Farms continues to scale to meet the needs of
skyrocketing manufacturing and retail demand. Shi is attempting to
find the sweet spot between the craft cultivation needs of High-CBD
Hemp and commercial agriculture type scale necessary to produce
large quantities of CBD ingredients. Shi Farms
wants to
be a steward of the Hemp Industry for a long time, and educating
and assisting farmers is a good first step. In 2018, Shi Farms
launched its first out-of-state Co-Op in New York. With a
successful pilot under its belt, Shi Farms plans to continue
scaling acreage on the east coast.
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
hemp was legalized under the 2018 Farm Bill. Hemp
CBD, like that in the Company's products, is the non-psychoactive
component (No THC) used for potential relief 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. Also,
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 letter
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 and whether or not we enter definitive agreements with
Shi Farms. The matters discussed herein should not be construed in
any way, shape or manner of our future financial condition or stock
price.
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