Business
Global Hemp Group Signs Binding Agreement to Acquire Control over Strategic Water Infrastructure Assets in Colorado
(TheNewswire) Vancouver, BC - TheNewswire - January 18, 2021 - GL...
About this update from Global Hemp Group, Inc.
[{"type":"text","content":"Global Hemp Group Signs Binding Agreement to Acquire Control over Strategic Water Infrastructure Assets in Colorado\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n Vancouver, BC -\n \n \n TheNewswire -\n \n \n January 18, 2021 -\n \n \n GLOBAL HEMP GROUP INC. (“GHG” or the\n“Company”) (CSE:GHG\n \n \n )\n \n \n /\n \n \n (CNSX:GHG.CN) / (\n \n \n OTC:GBHPF\n \n \n )\n \n \n /\n \n \n (\n \n \n FRANKFURT:GHG)\n \n \n is\npleased to announce that it has signed a binding Letter of Intent with\nPrescient Strategies Group LLC (“PSG”) to acquire its Western\nSierra Resource Corporation (“WSRC”) Preferred A Class Share\nholdings (“WSRC Prefs”) in a private, third party transaction. The\nresulting acquisition of these WSRC Prefs will give GHG control over\nWSRC, and specifically its strategic water infrastructure assets that\nwill be an integral part of the Company’s Colorado Hemp-Agro\nIndustrial Zone project as originally announced on September 16, 2020.\nThe parties have agreed to develop the project through\n \n \n Innovative Hemp Technologies\n \n \n -a wholly owned GHG U.S. subsidiary. The resulting alignment\nof GHG, WSRC and their respective management teams together under one\numbrella will result in a stronger and more focused and efficient\nentity.\n \n \n \n \n As part of the contemplated transaction, GHG is in the\nprocess of commissioning updated appraisals on these water assets.\nDocumented historical valuations of the 4,000 acre feet of water\nrights and associated infrastructure are based on a 2013 and 2015 MAI\nappraisal and engineering  reports, as well as a water law\nattorney’s comprehensive summary of various historic water rights\nappraisals and their relationship with land values dated March 2017.\nAll of which support a value of US$40,000,000 or higher. GHG intends\nto conduct a third party valuation of this initial assessment value to\nsupport such appraisal.\n \n \n \n \n Transaction Details:\n \n \n \n \n Prescient Strategies Group LLC currently holds\n19,875,000 Series A WSRC Prefs (with Voting Rights of 100 votes per\nshare). On signing of the Definitive Agreement, which is expected to\nbe concluded on or about January 25, 2021, GHG will acquire 11,006,440\nunencumbered WSRC Prefs from PSG for 11,006,400 GHG Preferred B...