PLACERVILLE, CA, Dec. 17, 2014 /CNW/ - iMD Companies, Inc. (OTC:ICBU) is extremely excited to announce that it has acquired Freedom Seed and Feed, LLC of Lexington, KY., the first federally permitted hemp seed and fiber farm in the United States.
In accordance with the terms of the agreement, iMD has made the first $50,000 cash payment to Freedom Seed and Feed (FSF). The purchase agreement also includes the subsidiary companies Freedom Seed & Feed, Healing Ground Farms, and Freedom Hemp. iMD will also make additional cash and securities payments for a total purchase price of $1.9 million for the acquisition.
Last February, Sen. Mitch McConnell and Sen. Rand Paul successfully sponsored a provision in the farm bill, passed by Congress, which repealed the long-term ban on growing hemp. Hemp crops are poised to be a significant catalyst to the agriculture industry in the State of Kentucky with the climate and the soil composition in the Blue Grass state being very conducive to growing hemp crops. Sen. Paul stated, in an opinion article on Feb. 6 in the Lexington Herald-Leader, that 94% of the nation's hemp crops were grown in Kentucky prior to the ban in 1970.
"This acquisition is so key for us as we were not only able to obtain a one-of-a-kind company but it also gives iMD a source that is capable of leasing land, purchasing seed, clones and the equipment needed to grow industrial hemp," said Larry Robertson, president of iMD Companies, Inc. "The bold vision that iMD management has in common with FSF's David Hadland and Michael Lewis will help expedite our entrance into the industrial hemp market."
This acquisition is in line with the company business plan, which calls for iMD management to be aggressive in its search for acquisitions that will strengthen the iMD family of companies. Freedom Seed and Feed fits the description perfectly as it has a solid revenue stream, modest expenses in addition to providing products and services required by iMD.
About Freedom Seed and Feed:
David Hadland – Mr. Hadland is the former president of the Kentucky Hemp Growers Cooperative Association and an appointed member by the state of Kentucky to the Kentucky Industrial Hemp Commission. David, a leader in the effort for the last 5 years to legalize hemp, worked with the Kentucky AG Dept., Senate, House and U.S Senate & House to draft Senate Bill 50 and push for the amendment to the U.S Farm Bill. Senate Bill 50 was passed and David has been a part of the Hemp Pilot Program since its inception. David has offered to assist the institute in negotiating all R&D public/private relationships offering clients a real-time, early adopter context for identifying investment opportunities within the Industrial Hemp sector.
Michael Lewis – As the director of Growing Warriors, Mr. Lewis is a Kentucky Proud farmer and a Veteran of the 3rd US Infantry, The Old Guard. In 2012 he founded America's first Veteran Oriented food security organization, The Growing Warriors Project, to Equip, Assist, and train our nation's military Veterans in production agriculture for themselves, their families, and the nation. He served as a member of the Kentucky Industrial Hemp commission and operates Americas first federally permitted Industrial Hemp farm since 1934 with the help of his fellow Veterans.
About iMD Companies, Inc.
iMD Companies, Inc., (OTC MARKETS: ICBU) is a Florida corporation, engaged in the manufacturing, marketing, and distribution of equipment for the hydroponics industry. The company has recently re-positioned to be a holding company for acquisitions in the Hydroponics industry. Recent acquisitions in those areas are R-Quest Hydroponics Inc. from Anything Technologies Media (OTC:EXMT) and Lumz'n Blooms, Ltd., a Manufacturer of Indoor Gardening and Hydroponics Equipment. The company and the principals of the management team have extensive backgrounds in finance, manufacturing, marketing and distribution. iMD's goal is to create and increase shareholder value by tactically growing our core Hydroponics business while strategically seeking to acquire new businesses and create other business alliances, which generate increased revenues and earnings. www.imdcompanies.com
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Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
SOURCE: IMD Companies, Inc.
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