On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Global Hemp Group, Inc. (CSE: GHG) (FRA: GHG) (OTC: GBHPF) Completes $1.5 Million Private Placement

  • Proceeds to be used for development of new cultivation and processing project in New Brunswick
  • A boost to operating capital
  • Canada plans to legalize the extraction of cannabinoids from hemp in mid-2018
  • Market for hemp CBD products is predicted to grow to $450 million by 2020

Global Hemp Group, Inc. (CSE: GHG) (FRANKFURT: GHG) (OTC: GBHPF), a company focused on the cultivation of hemp and cannabinoid extraction for both domestic and international markets, announced on March 7, 2018, that it had closed a non-brokered private placement, consisting of 12.5 million units at a price of $0.12 per unit, to raise $1.5 million (http://cnw.fm/DK0u6). Each unit comprises one common share of the company and one common share purchase warrant. The warrant entitles the holder to purchase one common share at a price of $0.15 for a period of five years from closing. No finder’s fee was paid on this placement, and all securities issued are subject, in accordance with securities laws, to a four-month plus one day holding period from date of issue.

Global Hemp Group intends to use the proceeds for several purposes. Firstly, the capital will be used to fund the development of its New Brunswick hemp cultivation and extraction project. In conjunction with its joint venture partner, Marijuana Company of America (OTC: MCOA), Global Hemp Group completed its industrial hemp trials in northeast New Brunswick at the end of 2017. This marked the first harvest of hemp on the Acadian peninsula in 20 years. The partners have recruited hemp farmers to work 125 acres in 2018 and plan to increase the area under cultivation to over 1,000 acres within three years. Global Hemp will supply its considerable technical and management expertise for this project.

The proceeds will also be used to fund due diligence on potential acquisitions, namely in the State of Oregon, where Global Hemp Group is contemplating buying land for hemp cultivation and cannabinoid extraction. The funds will also be used to bolster the company’s working capital. Company insiders subscribed for a total amount of $371,542, representing 24.8 percent of the private placement.

Founded in 2014, Global Hemp Group is building a strategic portfolio of hemp-based companies to provide its global customer base with a consistent supply of high-quality hemp-derived products. It intends to leverage the huge market potential of hemp products to deliver significant ROI to its shareholders. The number of products that can be manufactured from the hemp plant is vast. It can be used to provide food, clothing, building materials, fuel and medicine. Additionally, its use for the development and production of cannabidiol (CBD)-based medical products has immense market potential. In the future, Global Hemp Group intends to establish several Hemp Agro-Industrial Zones (HAIZ) for the development of industrial hemp cultivation and processing facilities. The company plans to achieve the development of this concept through joint ventures, partnerships or acquisitions of companies involved in the farming, processing, manufacturing and distribution of hemp products.

The market for CBD-based medical products has witnessed a huge surge over the last year, and it is expected to grow at a CAGR of more than 39 percent over the next four years. The Hemp Business Journal (http://cnw.fm/0D2nh) forecasts that the CBD market will grow to over $2 billion by 2020, with $450 million attributed to hemp-based cannabinoid medical products.

For more information, visit the company’s website at www.GlobalHempGroup.com

More from CannabisNewsWire

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
303.498.7722 Office


Select A Month

Official NewsWire Relationships

Benzinga Cannabis Capital Conference Cannabis Business Summit & Expo 2019 Cannabis Drinks Expo MjMicro Conference New England Cannabis Network O'Cannabiz Conference & Expo

Contact us: 303.498.7722