SOL Global Subsidiary Heavenly Rx Announces Acquisition of 568 Acres of Hemp Farms for Biomass Production
TORONTO, March 7, 2019 /CNW/ - SOL Global Investments Corp. ("SOL Global" or the "Company") (CSE: SOL) (OTCQB: SOLCF) (Frankfurt: 9SB) is pleased to announce that it has signed a binding letter of intent ("LOI") to acquire three tracts of agricultural property totaling 568 acres of land in the States of Tennessee and Kentucky for the cultivation and production of raw hemp biomass. The Company will assign the agricultural property to its hemp/CBD-focused subsidiary, Heavenly Rx Ltd. ("Heavenly"). The properties will be directly managed by Heavenly portfolio company Blühen Botanicals LLC ("Blühen"), an industry-leading hemp biomass processing and extraction company headquartered in Knoxville, Tennessee.
Under the terms of the LOI, Heavenly will acquire a total of 420 acres of agricultural property in McMinn County, Tennessee, and 148 acres of agricultural property in Whitley County, Kentucky. The properties were specifically selected in areas prized for their temperate climates and ideal environmental conditions for both greenhouse and outdoor growing. Blühen will manage the farms pursuant to a farm management agreement to ensure that the highest quality standards are met while also maintaining EuGMP certification protocols.
The properties will allow Heavenly to fill future national or international orders using its own farms and supply agreements, a key development in Heavenly's strategic plan to become a vertically-integrated leader in the hemp and CBD marketplaces.
Also included in the farm and supply agreements will be set terms for contract farming in Tennessee and Kentucky at highly favorable market rates. The first year of contract farming is expected to produce a projected 500,000 lbs. of hemp biomass, which will in turn produce a multitude of high quality, hemp-derived CBD products. The cost of biomass production under the Blühen contract farming agreement is expected to be significantly lower than the average price paid per pound of biomass in 2018, allowing Heavenly and Blühen to realize higher total margins for their hemp and CBD products.
This acquisition allows Heavenly to solidify its position as a vertically-integrated leader in the emerging hemp and CBD marketplace
said Joe Fox, CEO of Blühen.
Blühen looks forward to leveraging its numerous relationships with farmers across the southeastern United States as the company becomes an increasingly vital part of the national hemp and CBD supply chain
We're excited to partner with some of the best hemp farmers in the United States on this latest venture, which strengthens our vertically integrated hemp and CBD international rollout plan
said Brady Cobb, CEO of SOL Global.
This acquisition will allow Heavenly Rx to expand its leadership role in the U.S. hemp and CBD industry, and Blühen Botanicals' industry-leading expertise in hemp processing and extraction will prove a valuable asset in the management and cultivation of the properties
SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's R&D program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States' medical cannabis industry.
About Heavenly Rx Ltd.
Heavenly will hold controlling ownership interests in various industry-leading assets in the hemp/CBD and THC-free cannabinoid wellness space, with a focus on hemp cultivation, processing and the manufacturing of a diverse range of traditional CBD products including oils, tinctures, balms, and vape-ready products. Heavenly Rx's portfolio will include several proprietary brands across numerous consumer product group verticals such as cosmetics and beauty products, bath and body products, and infused foods.
About Blühen Botanicals LLC
Headquartered in Knoxville, Tennessee, Blühen Botanicals is a hemp biomass processing and extraction company with farming and distribution partners across the United States. With a dedicated, pharmaceutical grade hemp research facility, Blühen works with manufacturers to produce custom formulations for its own blend of boutique wellness products such as full spectrum hemp extract tinctures, capsules, creams, pet treats, and oils. The company employs expert entomologists, plant pathologists, agronomists, chemists, and engineers on its 30-person team. The company will open its flagship retail location in Knoxville, Tenn. in May 2019 and plans to open a second retail location in Fort Lauderdale, Fla. later this year. Learn more at www.bluhenbotanicals.com.
This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Some of the forward-looking information contained in this press release include, but are not limited to, statements with respect to: the acquisition of certain agricultural properties in Tennessee and Kentucky and the assignment of such properties to Heavenly; the Company's plans regarding the use and management of the subject properties; the anticipated productivity of the properties; and the Company's strategic plans regarding the hemp and CBD marketplaces.
Forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, but are not limited to: the Company's ability to comply with all applicable governmental regulations in a highly regulated business; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; inconsistent public opinion and perception regarding the medical-use and adult-use marijuana industry; and regulatory or political change. Additional risk factors can also be found in the Company's current MD&A and annual information form, both of which have been filed on SEDAR and can be accessed at www.sedar.com.
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SOURCE SOL Global Investments Corp.