NEW YORK, NY, January 23, 2019 – HempAmericana, Inc. (OTC PINK: HMPQ) (“HempAmericana” or the “Company”), an emerging leader in the CBD products market, is excited to announce that the Company is set to receive its initial delivery of premium Hemp Flower from Hempistry, Inc. (“Hempistry”, hempistry.com) as part of the new Tolling Agreement recently struck between the two companies, wherein Hempistry will ship up to 90,000 lbs. of premium Hemp Flower to HempAmericana for extraction and processing at HempAmericana’s state-of-the-art high-capacity Augusta, Maine CBD production facility, generating full-spectrum CBD oil for sale, with proceeds divided evenly between the parties
The first shipment, now on its way to Augusta, contains One Thousand Pounds (1,000 lbs.) of premium Hemp Flower set for immediate extraction and processing.
Salvador Rosillo, HempAmericana CEO, commented, “This is an exceptional deal for HempAmericana and its shareholders because it presents a de-risked commercialization ramp. We will be able to deliver a higher quality product at better-than-anticipated gross margins and maintain the pricing flexibility to aggressively penetrate the marketplace, all while eliminating balance sheet and dilution risks for our shareholders due to the lack of upfront costs on the path to revenue growth.”
Management notes that the Tolling Agreement should afford HempAmericana with pricing flexibility due to the advantageous cost structure at the heart of the agreement. This flexibility may prove valuable as the Company seeks to aggressively widen its distribution footprint as it enters the $2.2 billion North American CBD market, which is expected to demonstrate accelerating growth in 2020 due to continued rapid mainstream consumer adoption. According to research firm MRFR, the global CBD market is expected to grow at a stunning 125% CAGR from 2019 to 2026.
“We’re thrilled,” continued Rosillo. “We are going to get a better overall deal on our core production input and with no material upfront cost. And we are already set to get started with the first big shipment on the way.”
About HempAmericana, Inc.
HempAmericana is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”. See more at www.hempamericana.com.
Safe Harbor Provision. Cautionary statement for purposes of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review Hemp Americana annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.
Phone: (888) 977-7985
Press & Media Inquiries:
EHC Branding Agency