Canadian hemp producer Global Hemp Group (GHG) issued the following press release today about forming a JV with Colorado based hemp grow outfit Space Cowboys partly owned by Craig Brand principal at Ganja Lawyers.
Vancouver, British Columbia – October 10, 2017 – GLOBAL HEMP GROUP (“GHG” or the“Company”) (CSE:GHG / FF:GHG / OTC:GBHPF) an industrial hemp and cannabis corporation, and Marijuana Company of America, Inc. (“MCOA”), (collectively the “Companies”), are pleased to announce they have jointly entered into a letter of intent with Space Cowboys, Inc. (“Space Cowboys”) for the purposes of forming a joint venture (the “JointVenture”). Space Cowboys is an existing fully licensed and compliant hemp derived cannabinoid producer in Colorado.
Pursuant to the terms of the letter of intent and subject to the Companies obtaining sufficient financing, the Companies will invest US$2.5 Million in exchange for a 25% equity interest in Space Cowboys. The investment funds will be used to expand Space Cowboys’ cultivation operation.
Space Cowboys is in its fourth year of operation and is in full compliance with Colorado state law and the Colorado Department of Agriculture. The business consists of both indoor and out door cultivation of high CBD hemp on properties in Longmont and Loveland, Colorado.
Space Cowboys current hemp crops will be harvested in the latter part of October and prepared for extraction of the high value cannabinoids.
For the Companies, in addition to the potential revenue streams generated from Space Cowboys ongoing high cannabinoid hemp production, this joint venture will provide the opportunity to bea part of a legal operation with the extensive knowledge and experience required to cultivate and process industrial hemp into raw cannabinoids. This will enable Global Hemp Group to develop its Hemp Agro-Industrial Zone concept. For MCOA, it will also provide a consistent cannabinoid supply from a known source and trusted partner for its hempSMART™ product line.
“We are very excited to have this opportunity to deepen our relationship with Space Cowboys and Marijuana Company of America. From the prospect of having Space Cowboys consult on our New Brunswick hemp project, the relationship has developed into a significant opportunity for the Company to establish itself in the hemp industry on both sides of the border”, said CEO, Charles Larsen.
The transaction is subject to a number of conditions, including but not limited to, completion of satisfactory due diligence, entry into a definitive agreement and receipt of any necessary regulatory approvals. There is no assurance such conditions will be met or that the Companies will be able to secure the financing necessary to complete the transaction on acceptable terms or at all.