Update on Global Hemp Group’s
Scio Oregon Hemp Project
Vancouver, BC -- (May 21, 2020) -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) would like to provide an update on its joint venture hemp project in Scio, Oregon, operated through its subsidiary Covered Bridge Acres (CBA).
The hemp farm has remained in operation through the Coronavirus pandemic as allowed by the State of Oregon. The CBA team is taking all necessary precautions required to operate in a safe and responsible manner. Fortunately, the farm is of significant size to enable the team to spread out widely throughout the property while carrying out their daily activities to prepare the farm for the 2020 cultivation.
Since the acquisition of the Scio farm in 2018, the CBA team has grown high CBD hemp, for the sale of both biomass and flower. In light of the current market conditions for these products due to overproduction in 2019 and slower than expected sales due to the pandemic, CBA has decided to change its production focus for 2020. This year, CBA will focus on producing a high quality CBG (Cannabigerol) flower in its greenhouses. This “artisanally grown” CBG flower will supply the smokable flower market, which has seen an increase in demand for quality CBG flower and has continued to hold its price in light of the current pressures in the CBD market .
The strain that will mainly be grown is referred to as “CBG-1”. This is a cultivar that has had extensive work in developing the perfect phenotype and has been back bred to produce an average CBG content of 22%, while having a total THC content of no more than 0.3%. Greenhouse cultivation was chosen for this project to ensure the highest quality of hemp is being grown. The greenhouses will also allow the team to better control the growing climate and protect the plants from any end of season rains that typically occur in this region of the Willamette Valley toward the end of the growing season. After the current crop is harvested in the fall, the CBA team will complete the buildout of all greenhouses so that there can be year round growing operations on the farm.
The hemp will be grown utilizing a Screen of Green (SCROG) cultivation method which implements horizontal trellis work that allows the average plant to produce 80-90% colas (tops) which are then trimmed to produce the final product of smokable buds. To further enhance this growing method, CBA will implement a high quality nutrient schedule aimed to boost the plants vegetative growth and develop very dense, aromatic buds for the final product. These nutrients should ensure that the plants will develop to full mature fruiting and have exceptional terpenes. CBA’s goal is to produce the most superior final product, making it a leader in the smokable CBG flower market. The current market for top quality smokable CBG flower remains significantly higher than CBD flower of similar quality.
CBA Sales Update - Some initial sales have been completed on the 2019 biomass however other sales have been delayed due to current virus conditions. The CBA team is continuing to pursue these sales where possible. The team also continues to assess additional value-added products that can be produced and marketed utilizing the Company’s biomass and oils, thereby maximizing the value that the Company can receive for its inventory.
Global Hemp is extremely sad to announce the passing of Charles Larsen, the Company’s President and CEO since the inception of the Company. Mr. Larsen was a visionary and pioneer in the hemp industry in the United States, and a strong believer in the disruptive potential of hemp. He will be sorely missed by his colleagues at Global Hemp who extend their sincerest condolences to his family.
Curt Huber, the Company’s current CFO and Director will assume the role of President, CEO and Chairman of the Board. Mr. Huber has been a Director of the Company since 2014 and has been involved in development and day to day operations of the Scio Oregon hemp project since its inception in early 2018. He is an experienced director and senior officer who has been involved in all facets of public companies for more than 30 years in many different sectors, including mining, oil and gas, and technology.
Furthermore, Global Hemp is pleased to welcome Sebastian Tang, CPA, to the Company as its new CFO. Mr. Tang has been involved in the accounting and preparation of the Company's financial statements for the past several years and is well acquainted with Global Hemp and its projects. Additionally, Mr. Tang has significant experience in the financial management and planning of publicly listed issuers. He has held executive positions, including CFO and corporate controller in other public and private ventures. Before starting his own firm, he worked in public practice for 7 years, including two years at Ernst & Young, and 8 years in private practice with Hunter Dickinson Inc.
The Company is also pleased to announce that Michel Lebeuf Jr, a Partner at the law firm of Dunton Rainville LLP’s Montreal office, has joined the Board of Directors. Mr. Lebeuf practices primarily in securities law, particularly in the areas of institutional and corporate financing, natural resources, fintech, life science, cannabis, as well as in public and private mergers and acquisitions. He represents public issuers, securities brokers, buyers, sellers, bankers, and financial advisors. He provides strategic advice on access to public capital markets, securities, and structured products. Mr. Lebeuf also has extensive experience in corporate transactions, public and private transfers, and institutional funding.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG), is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry the United States. The Company is headquartered in Vancouver, British Columbia, with hemp cultivation operations in the state of Oregon. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
Cautionary Note Regarding 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 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, the legality of cannabis and hemp. 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.Except as required by law, Global Hemp Group Inc. disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For Further Information Contact Global Hemp Group
Tel: 424-354-2998