Whole Plant Utilization Now Permitted, Enabling Development of New Revenue Streams
TSX.V – HEMP
VANCOUVER, Aug. 15, 2018 /CNW/ - Hempco Food and Fiber Inc. (TSX.V: HEMP) ("Hempco®" or the "Company") today comments on Health Canada's publication of the Subsection 56(1) Class Exemption in relation to the use of hemp under Industrial Hemp regulations (flowering heads, leaves and branches).
The exemption, published on August 10, 2018, enables companies with the relevant licenses to commence using the whole hemp plant for commercial purposes, which was prohibited under previous regulations. The exemption will remain in place until the scheduled implementation of the Cannabis Act on October 17, 2018, which allows for whole plant utilization from that date onwards.
"This historic decision clears the way for whole hemp plant utilization, a complete game changer for our industry, allowing Hempco to develop new revenue streams in potentially very significant markets," said Diane Jang, CEO of Hempco. "The exemption allows us and our strategic partner, Aurora Cannabis Inc., to commence extracting CBD from hemp and develop a new line of health products, a market with considerable potential."
Prior to implementation of the exemption, hemp growers were required to discard a sizeable portion of the hemp plant as waste. Under the new regulations, companies can immediately collect, harvest, dry and store industrial hemp flower, buds, leaf materials and branches. These materials contain very valuable raw materials that can be used to produce nutraceuticals and health products. These are markets where sustainability principles and health-related considerations are generating positive momentum for the adoption of new raw materials, such as hemp, creating significant growth potential.
Hempco has established a considerable network of suppliers of harvested hemp, providing the quantities of raw materials needed to produce these new products in large quantities.
Ms. Jang added, "The extraction of CBD allowed for under the new Act is another key component of our growth strategy, and we are well positioned to take advantage of this enormous opportunity. Together with our strategic partner and majority shareholder Aurora Cannabis Inc., we are now in prime position to develop quality new products and take our hemp business to the next level. The combined distribution channels of Aurora and Hempco, as well as Aurora's technology partners create both capacity and broad market reach, enabling us to pursue accelerated growth."
About Hempco For more than 12 years Hempco has been a trusted and respected pioneer, innovator and provider of quality hemp-based foods, hemp fiber and hemp nutraceuticals. Hempco produces and markets the brands Planet Hemp and Praise, hemp-based foods and nutritional supplements for people and animals. Hempco is expanding its processing ability to meet global demands in a 56,000 sq. ft. facility located at Nisku, Alberta. Hempco's common shares trade on the TSX Venture Exchange under the symbol "HEMP".
On behalf of the Boards of Directors,
HEMPCO FOOD AND FIBER INC Diane Jang CEO
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this press release include the Company's anticipation of further growth, its expectation that continued spot inspections by the Canadian Food Inspection Agency will strengthen its standing as a trusted supplier, its intent to achieve the BRC Global Standard for Food Safety and its efforts to implement these standards at its Nisku, Alberta facility, its expectation that the Nisku facility will be operational by Fall 2018. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Companies are under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Hempco Food and Fiber Inc.
For further information: John Ross, Chief Financial Officer, +1.647.291.4234, [email protected]