Proceeds from a $500,000 private placement will go towards taking control of the hemp plant on the outskirts of Dresden
Inc () (OTCMKTS:EURPF), a vertically integrated firm focused on the pan-European hemp and cannabinoid sector, revealed Thursday that the company’s top executives were in Europe to assess opportunities in the CBD hemp sector and meet with leading European hemp companies.
In a statement, the Canadian company said Derek Ivany, chairman of the EuroLife advisory board and president of merchant bank JJ WOLF Investments, will join CEO Shawn Moniz in identifying and assessing opportunities within the premium CBD markets in Europe.
"We are building off the groundwork established on recent expeditions to Europe which identified a number of potential opportunities including the equity investment in state-of-the-art industrial hemp cultivation operation located near Dresden, Germany," said Shawn Moniz, CEO of EuroLife.
READ: EuroLife Brands to launch hemp cigarette ‘HANF SWISS’ for the European market
"I believe that those companies equipped with low cost production combined with tactical downstream capability will be successful and we continue to execute on mandate of establishing EuroLife Brands as one of Europe's premium hemp CPG companies. We continue to be very encouraged by the response we are receiving as we plan for this trip," added Moniz.
In November, EuroLife Brands announced it plans to launch its own exclusive hemp cigarette brand, "HANF SWISS" and focus distribution efforts around the European market.
Significantly, EuroLife Brands is on its way to becoming a player in Europe’s hemp market after signing a binding letter of intent, which awards the Canadian cannabis group the right to purchase 20% of a yet-to-be-formed German company called German HempCo, which will control a hemp cultivation plant on the outskirts of Dresden, Germany.
Through its stake in the German company, EuroLife said it will have a “consistent supply of hemp filler” from the Dresden cultivation project.
EuroLife said HANF SWISS hemp cigarettes will be tobacco-free, nicotine-free, and will be rolled in organic hemp paper with a natural wood pulp filter.
The company also said it has arranged for a non-brokered private placement of 10,000,000 units at a price of $0.05 per unit for gross proceeds of $500,000. Each unit consists of one share and one share purchase warrant. The company said each warrant entitles the holder to one share at an exercise price of $0.075 per share at any time on or before the 24-month anniversary of the closing of the offering.
“Net proceeds from the funds raised will be used to complete the acquisition of the Dresden hemp transaction, and continued expansion across Europe,” said the company, while adding that all shares and warrants are subject to a four-month hold period.
With over 500 million people in the European Union alone, the European opportunity within the hemp and cannabidiol marketplace is large and growing at a substantial pace, noted the company.
In 2018, European hemp cultivation grew by over 40% from 2015 to more than 40,000 hectares of production. Hemp production is centered in France, the Netherlands, Lithuania, Romania, with Germany making inroads and playing an increasingly important role in the hemp market share, said the company.
EuroLife has been on a mission to migrate all of its cannabis and hemp-related business to Europe and away from North America. In recent months, the group has struck relationships with three important partners to bring new products to the European marketplace, namely, with The Yield Growth Corp, Champignon Brands Inc, and AgraFlora Organics International Ltd, the firm noted.
Contact the author Uttara Choudhury at [email protected]
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