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Global Hemp Group and Marijuana Company of America Form Joint Venture to Cultivate High Yielding CBD Hemp in Scio, Oregon
Global Hemp Group and Marijuana Company of America Form Joint Venture to Cultivate High Yielding CBD Hemp in Scio, Oregon.
About this update from Marijuana Company Of America, Inc.
[{"type":"text","content":"\nVANCOUVER, B.C., May 09, 2018 (GLOBE NEWSWIRE) -- via NetworkWire -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE:GHG) (OTC:GBHPF) (FRANKFURT:GHG) is pleased to announce that is has signed a Joint Venture Agreement (the “Agreement”) with MARIJUANA COMPANY OF AMERICA, INC. (OTC:MCOA) to cultivate high yielding CBD hemp at its recently acquired 109 acre farm (see news release of May 1, 2018) in Scio, Oregon (the “Project”).\n Pursuant to the terms of the Agreement, GHG and MCOA (the “Partners”) will jointly invest a total of US$1.2 million in the development of the Project in 2018. Funding for the Project will be done on a 50/50 basis. GHG has sufficient capital on hand to fund their share of the Joint Venture for 2018, as a result of the recently completed private placement (see GHG’s news release of March 7, 2018 for further details) and MCOA is in the process of advancing their share of the investment. The Partners have engaged TTO Enterprises Inc. (“TTO”) to manage the Project. TTO will serve as Project and Farm Manager and will be responsible for the entire Scio operation as well as provide consulting services to the Partners’ 125-acre joint venture farm operations in New Brunswick, Canada. TTO’s expertise includes genetics development, selection and management, planting and harvest scheduling, clone management, field preparation, field set and field management strategies. For managing the Project, TTO will earn a 15% equity interest in the Project. The Partners have the right to exchange 10% of TTO’s equity initial interest of 15% for common shares and share purchase warrants of both of the Partners, based on specific milestones being met, as more fully described below. The joint venture entity, Covered Bridge Acres LTD. (“CBA”), is initially owned by GHG (42.5%), MCOA (42.5%) and TTO (15%). Upon planting of 20,000 clones at the farm (the “First Milestone”), one third (5.0%) of TTO’s initial interest in CBA will be acquired by GHG and MCOA in exchange for 250,000 common shares of GHG and 250,000 common share purchase warrants of GHG exercisable at a price of USD$0.12 for a period of five years to be issued to TTO, along with 1,000,000 common shares of MCOA and 1,000,000 common share purchase...