Surrey, BC — (July 29, 2015) — GLOBAL HEMP GROUP INC. (“GHG” or the Company”) (CSE: GHG / FRANKFURT: GHG / OTCQB: GBHPF) is pleased to announce that it has signed a Letter of Intent with Western Sierra Mining Corp. (“WSM”) (OTC: WSRA) of Edmond, Oklahoma to partner on the acquisition of agricultural lands for the purpose of hemp cultivation and the development of a Value-Added Hemp Processing Zone, strategically located adjacent to hemp farming areas.
To launch this project, GHG and WSM (the “Partners”) are currently evaluating a number of locations in the Western United States where hemp can be legally grown. This Hemp Processing Zone will be the first of its kind in exploiting the full potential of the crop, in just one location.
The vision for the Processing Zone is to transform the hemp seed into oil and protein powder for the food industry, utilize the leaves and flowers to extract Cannabidiol (CBD), a new and rapidly emerging industry, and to process the straw into fibre, hurd (woody core) and dust. The fibre will be further processed for the textile industry to supplement cotton and synthetic fibres. The hurd will be processed into chips to be utilized in sustainable building materials for the construction industry, and the dust recovered will be pelletized for a variety of target markets. Initial building materials produced will be utilized in the construction of the processing facilities and affordable work force housing for the Company’s employees. The design and construction of the hemp processing zone will incorporate sustainable materials and technologies with the goal of achieving a near net-zero carbon footprint. These facilities will produce sustainable hemp products that will replace carbon based products and sequester CO2 permanently.
The Partners will identify the first location within the next 90 days to ensure that all the permits and licenses are in place to begin initial hemp cultivation for the 2016 growing season. The Hemp Processing Zone will stimulate rural development and job creation in regions that need it most. This zone could potentially create 50 to 100 jobs upon initial launch, with the potential to ultimately create as many as 500 to 1,000 jobs as hemp production expands and the processing facilities are scaled up to accommodate increased production.
The funding required will be approximately million, allocated over a 12 to 18 month time horizon. Subsequent expansion could potentially be self funded from production and processing revenues. A subsidiary will be created for this venture, which will be jointly owned (50/50) by the Partners. WSM will contribute million in marketable assets to the venture which will be leveraged to raise the necessary investment capital required to launch the project. GHG will contribute the necessary expertise and technology required to cultivate and process the hemp into a wide variety of value-added products
The Company has also signed extensions to the Letters of Intent on the Skunk Magazine and House of Hemp (“HoH”) acquisitions to October 22, 2015. The due diligence on the House of Hemp acquisition has been prolonged as a result of a HoH reorganization. The due diligence on the acquisition of both companies has been postponed while the Company worked through the due diligence to close the JV with WSM.
About Global Hemp Group Inc.
Global Hemp Group (“GHG”) is a publicly traded company founded in 2012, headquartered in British Columbia, Canada with base operations in Southern California, USA and having a strategic partnership in South Africa. The Company is focused on acquiring and/or joint venturing with companies across all sectors of the hemp and cannabis industries in an effort to build a “soil-to-shelf” portfolio of complementary companies that will enable GHG to capture cash flow, revenues and value from its acquisitions and establish a far greater collective valuation than GHG or the individual companies would have on their own.
On behalf of the Board of Directors
President & CEO
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Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Global Hemp Group Holdings Inc., including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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