AgraFlora said Binbrook Farm was expected to yield around 50,000 kilograms of high CBD hemp in fall 2020
AgraFlora Organics International Inc () () told investors on Friday that it had struck a cultivation partnership with MicroC45 Inc for growing hemp in Ontario, Canada.
The deal is between subsidiary Sustainable Growth Strategic Capital Corp (SGSC) and MicroC45 Inc and SGSC has already successfully planted 50 acres of high-quality hemp at a farm in Binbrook, it revealed in a statement.
READ: AgraFlora Organics International expects PSC joint venture to begin sales this year
AgraFlora said Binbrook Farm was expected to yield around 50,000 kilograms of high CBD hemp in fall 2020.
"Cultivation at Binbrook represents another milestone for this core-asset strategy,” said Brandon Boddy, AgraFlora's executive chairman and CEO.
"With our expected high yielding CBD crop and the unique post-harvest methodology, we expect to be able to create a large volume of CBD inventory of the highest quality ready for our enterprise customers. By controlling the process from soil to oil we can ensure we are optimizing the economic value of the resulting distillate and isolate while managing costs throughout the value chain. We can look forward to a strong vertically integrated extraction model of high quality CBD crude, isolate, and distillate," he added.
MicroC45 has a proprietary separation process that results in higher extraction value and ultimately a greater yield of major and minor cannabinoids, highlighted the firm.
Based on the forecasted yields and MicroC45’s technology, AgraFlora anticipates it will be able to create approximately 1,000 kgs of CBD isolate, CBD Distillate, and THC-Free Distillate inventory for sale to its current and future clients, it added.
AgraFlora also said it aimed to complete a non-brokered private placing of up to 20.6 million units at C$0.075 each for gross proceeds of C$2 million. Each unit comprises one share and one transferable share purchase warrant.
Each warrant entitles the bearer to buy one further company share for five years from closing at C$0.10 each.
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