GLOBAL HEMP GROUP PROVIDES UPDATE
Vancouver, BC -- (July 31, 2023) -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) wishes to provide a corporate update on the business of the Company.
The Company is focused on two business segments: (1) Industrial Hemp, including, but not limited to renewable construction materials, and (2) Natural biologic therapeutics relating to the Exclusive licensing of patents and IP from Apollon Formularies plc (“Apollon”).
Update on the Apollon Formularies plc Transaction
On January 9, 2023, the Company executed a binding Letter of Intent (“LOI”) with Apollon, a UK-based international pharmaceutical company developing cancer treatments from natural biologics, including cannabinoids, functional mushrooms, psychedelic mushrooms and combinations of these compounds, which to date have shown successful independent, third-party results in pre-clinical testing, and utilizes an artificial intelligence-based drug discovery platform.
Under the terms of the LOI, GHG acquired the exclusive perpetual license for North America (the United States, Canada and Mexico) to certain Apollon Intellectual Property and proprietary technology, including, but not limited to, four key patents including any continuations, divisional, and continuations-in-part, along with any and all associated preclinical and clinical data relating to the patents and proprietary technology (the “IP”). The Exclusive Licensing has since been expanded for two of the four patents to include the European Union with extension to Morocco and Israel.
Per the terms of the LOI, the Company was also granted an option to acquire the entirety of Apollon’s global assets upon completion of mutual due diligence. The Parties have made the joint decision not to proceed with acquisition of Apollon’s assets, but rather to work together going forward to sublicense the exclusively licensed Apollon intellectual property, thereby making the Apollon products available in legal jurisdictions throughout North America (the U.S., Canada, and Mexico) and the European Union with extension to Morocco and Israel.
Update on Sub-licensing of GHG’s Exclusive Intellectual Rights
On April 28, 2023, the Company announced that it had issued its first Non-Exclusive Sublicense to Medicinal One, LLC, a corporation created specifically to launch online eCommerce sales of the Apollon Branded products including both functional mushroom and hemp-based products throughout the United States where legal. This will include Apollon’s unique patent pending mushroom/hemp-based combination product line. Management identified a U.S. manufacturer who has provided samples and pricing of the required Apollon formulations. All parties have now signed off on the final products, and the Company has been advised that the Sublicensee is in the process of completing its first order.
Initiative To Produce Affordable, Carbon Negative, Hemp-Based Housing in Quebec
On April 26, 2023, the Company announced that it was looking to expand its ongoing hemp related business endeavours and had embarked on an initiative to combine hemp-based construction with affordable housing to create carbon negative affordable housing in the Victoriaville area, in Quebec. Initial funding for the project was in the form of a grant that had been submitted into Canada Mortgage and Housing Corporation’s Round 4: Housing Supply Challenge, Building for the Future: Innovative Construction for Housing Affordability, with the successful applicants invited to participate in Stage 2 and receiving up to $150,000 to further the design and prepare a feasibility plan for the project, with the ultimate goal of receiving a share of the $37.5 million allocated to the successful applicants. GHG has been notified that the Company was not chosen to move forward in this grant process. In light of this development, Management is analyzing how/if it would like to proceed with the project.
Update on Listed Issuer Financing Exemption (LIFE) Private Placement and other Corporate Matters
Further to the Company’s announcement of April 20, 2023, the LIFE private placement was only available for 45 days, and it expired before any closings took place. The Company will look to reinitiate a LIFE financing in the future in compliance with National Instrument 45-106.
The Company held its Annual General Meeting on July 28, 2023. A total of 57,981,644 common shares representing 16.183% of the 358,293,392 common shares entitled to vote were represented in person or by proxy at the meeting.
All Company matters submitted to shareholders for approval as set out in the Company's Notice of Meeting and Management Information Circular, dated June 21, 2023 (the "Information Circular"), were approved by the requisite majority of votes cast at the meeting. A copy of the Company's Information Circular is available under the Company's profile at www.sedar.com.
In addition to the presentation of the Company's audited financial statements for the years ended September 30, 2021 and September 30, 2022 at the Meeting (i) the number of directors for the upcoming year was set at four (4) directors; (ii) each nominee director set forth in the Information Circular was elected to the Company's board as noted below; (iii) DMCL, Chartered Professional Accountants were reappointed as auditors for the Company; (iv) a special resolution was approved authorizing the Corporation to consolidate the common shares of the Company up to a maximum of 25 common shares to 1 common share for a period until the next meeting of shareholders; and (v) re-approval of the Company's 10% rolling stock option plan was confirmed.
Aurelio Useche, Veronique Laberge, Stephen Barnhill Jr. and Curt Huber were re-elected as Directors of the Company. Rachel Lu has been appointed CFO and Curt Huber has been appointed interim President and CEO as Stephen Barnhill Jr. has resigned from his Interim Role as CEO to pursue personal endeavours. Curt Huber will remain in the senior executive role until such time as a new CEO is appointed.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) is focused on developing and promoting hemp-based products that are sustainable, environmentally friendly, and have a positive impact on society. To further support and innovate, GHG has established a R&D Division to actively pursue the development of Intellectual Property that can be patented for implementation at its projects and beyond. The Division is led by Prof. Víctor M. Castaño, Ph.D. whose career has focused in the areas areas of applied science and technology. The R&D team will initially focus on development of Environmentally Friendly Construction Materials, Nanofertilizers and Enhanced Cannabinoid Extraction from Hemp.
For Further Information Contact Global Hemp Group
Investor Relations
Tel: 778-726-2900
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.