Exclusive Option Agreement
Global Hemp Group has executed an Exclusive Option Agreement (the “Agreement”) to acquire Serres Thériault (2021) Inc. (“STI”), a multi-faceted vertically integrated cannabis operator with an additional focus on hemp, based in New Brunswick.
On January 10, 2024 GHG announced the completion of an Amended Option Agreement that provided 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 in Canada.
Pinnacle Farms - onsite retail outlet
Pinnacle Farms, a retail operation located onsite (picture to the left) opened late in 2024. This store has been licensed as a Farmgate retail model operation in New Brunswick with exclusive distribution of products manufactured by STI.
Milestones accomplished by STI in 2024
- STI 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.
They began active sales to Cannabis New Brunswick
Opened an onsite Farmgate retail store
Have an initial 21 product sku's actively listed for sale
Finalized all security system upgrades, including all the building modifications in order to become a Standard Licensed Producer
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.
Hemp Based Sustainable Energy Products
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.
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.
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
Deal Terms
For information on the terms of the initial Option Agreement, see the Company’s news release of January 15, 2024, and for information on the terms of the Amended Option Agreement, see the Company’s news release of January 7, 2025.