Global Hemp Group Provides Corporate Update
Vancouver, BC -- (January 7, 2025) -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG0) is pleased to welcome Christopher Cheery, CPA, CGA as its new CFO, replacing the company’s current CFO Yousef Kamhiyah.
Mr. Christopher Cherry has over 20 years of corporate accounting and audit experience, along with extensive corporate experience, having held senwishes to provide an update on its various ongoing hemp related initiatives in the Provinces of New Brunswick and Quebec. There are currently three main initiatives that the Company has been focused on in these regions, and include:
- Hemp Based Sustainable Energy Products: Developing a solution that utilizes hemp biomass as a carbon-negative energy source.
- Acquisition of Serres Thériault (2021) Inc. (“STI”): Option to acquire this vertically integrated cannabis operator, that also focuses on hemp.
- Hemp-Based Housing: Advancing the creation of affordable, carbon-negative housing in Quebec (updates expected over the next 30 days).
Hemp Based Sustainable Energy Products
Hemp cultivation acts as a powerful carbon sink, capturing far more CO2 per hectare than forests, showcasing its potential in climate solutions. Hemp biomass is recognized for its potential as a sustainable energy source, its exceptional carbon sequestration capabilities, and its ability to return carbon into the soil with roots that dig deep, making it a clear choice. Through the Company’s affiliate STI, 35 acres of industrial hemp were cultivated as part of a strategic alliance with Groupe Savoie, a leading pellet manufacturer in New Brunswick. This is a business segment contained under the STI Option Agreement.
To overcome logistical challenges in large-scale sustainable energy solutions, Groupe Savoie is focusing on torrefaction of biomass and densification through pelletization and briquetting. The collaboration will utilize hemp biomass for proof of concept, as hemp biomass has a very similar profile of calorific value to that of wood. Torrefaction of the biomass makes for higher density products, reduced moisture content, improved storage stability and enhanced transportability. GHG is committed to continuing this groundbreaking research with the goal of commercialization in European markets. GHG is also begun sourcing equipment for biochar development in collaboration with STI in New Brunswick to capture the highest value with its carbon credit participation. This initiative aligns perfectly with the growing global demand for sustainable biomass energy solutions. Global Hemp Group's dedication to harnessing the power of industrial hemp for construction and as sustainable energy production demonstrates the Company’s commitment to innovation and environmental stewardship.
Option to Acquire STI
The Company also wishes to announce that it has executed an Amendment and Extension to its Exclusive Option Agreement (the “Agreement”) to acquire Serres Thériault (2021) Inc. (“STI”), a multi-faceted vertically integrated cannabis operator with additional focus on hemp.
Since GHG’s initial announcement on January 15, 2024 regarding the execution of the STI Option Agreement, STI has accomplished the following in 2024:
- Has received a license upgrade authorizing the sale of cannabis, cannabis plants, cannabis plant seeds, dried cannabis, fresh cannabis, cannabis, topicals, cannabis extracts, and edible cannabis to a holder of a licence for sale, or a person that is authorized under a provincial Act referred to in subsection 69(1) of the act.
- Began active sales to Cannabis New Brunswick
- Opened an onsite Farmgate retail store
- Has an initial 21 product sku's actively listed for sale
- Has finalized all security system upgrades, including all the building modifications in order to become a Standard Licensed Producer
- Has successfully cultivated 2-acres of a high yielding registered CBD hemp cultivar
In the first quarter of 2025, STI will expand its offerings by entering the broader cannabis markets across the Maritimes, enhancing its market presence. By the second quarter of 2025, STI is set to finalize its transition from a Micro Processing, Packaging, and Sales license to becoming a Standard Licensed Producer, which will enable it to scale operations and meet increased regulatory requirements.
The Amended Agreement provides GHG with a 15% interest in STI as well as more time and flexibility to fully conclude its full acquisition of STI should the Company decide to exercise its option. This transaction provides GHG with a clear pathway to further diversify its activities in the industry and importantly, collaborate with a licensed entity. The Amended Option Agreement replaces all previous agreements between the parties and has deemed to have cured any potential defaults that may have arisen, although none were invoked or the Company notified of such since the execution of the original Option Agreement on January 11, 2024.
Amendments and Additions to the Original Option Agreement
- The option term end date has been extended from January 11, 2026 to June 3, 2026
- GHG will issue to STI or its nominees 2,000,000 common shares at a deemed price of $0.03 per share and in accordance with securities regulations that are applicable, to Amend and Extend the original Option Agreement
- GHG will issue to STI or its nominees 2,000,000 common shares at a deemed price of $0.03 per share and in accordance with securities regulations that are applicable for the 15% interest. The Parties have agreed that their respective shares relating to this interest will be held in escrow until the Closing Date, in the event that GHG elects to fully exercise its option on STI.
- In the event that GHG exercises the Option, GHG will assume all Debts and liabilities of the STI which currently totals $1.6 million, which includes the mortgage on the property.
For complete details of the Original Option Agreement, please refer to the Company’s news release of January 15, 2024 entitled “Global Hemp Group Announces Execution of Exclusive Option Agreement to Acquire Serres Thériault (2021) Inc…”.
Assets to be Acquired on Exercise of the Option
The Agreement covers the acquisition of the 8.6-acre compound and its five buildings (with the property independently valued at $1,401,000 as at September 3, 2024) for processing, packaging and sales, along with 6,000 sq feet of greenhouse, equipment, inventory, and a Farmgate retail operation located within the existing compound that will have exclusive distribution of products manufactured by STI, plus the following:
- Health Canada Licenses
- Exclusive partnership deal with Hemp License holder
- Exclusive partnership deal with Cannabis Research License holder
- Intellectual Property relating to cannabis recipes
Partnerships with strain developers of genetics including strains with high value CBD, CBG, CBN, and THVC
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG0) is currently focused on two key business segments - Industrial Hemp and Health & Wellness (Biopharma).
The Industrial Hemp division’s primary focus lies in the environmental uses of hemp for construction and hemp for sustainable bio-energy sources, both contributing to a carbon-negative footprint. The Health and Wellness Division is focused on the acquisition of exclusive licensing of patents and IP.
The Company’s R&D Division, lead by Prof. Víctor M. Castaño, a prominent figure in applied science and technology from the National Autonomous University of Mexico, focuses on GHG's broader strategy to leverage the growing opportunities in the industrial hemp sector.
For Further Information Contact Global Hemp Group
Investor Relations
Tel: 778-726-2900
info@globalhempgroup.com
https://www.globalhempgroup.com
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.