SAN DIEGO, CA, June 26, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – With this year’s 1,200-acre hemp crop in the ground and moving toward harvest, Upper Street Marketing Inc. (OTC Markets: symbol UPPR) and its partners are now expanding their revenue focus beyond the 2019 cannabidiol (CBD) extraction cycle in a $3 million stock for equipment transaction of indoor grow equipment. UPPR will issue $3 million worth of UPPR common shares to the seller, Fox Organic Farms.
The purchase of 100,000 watts of state-of-the-art greenhouse lighting capacity enables UPPR to dedicate a section of its 100,000 square-foot hemp extraction facility to seed and transplant production during the fallow season once an anticipated 2 million of biomass from the outdoor crop has been processed.
Cultivating hemp seed in full compliance with federal regulations is notoriously difficult outdoors, where one wrongly sexed plant can ruin a multi-million-dollar harvest. As a result, seed and transplant operations depend on the carefully controlled conditions that only an indoor facility can support.
“Adding a winter cultivation to our calendar further expands our hemp business model and extends our 2020 revenue projections by at least $15 million,” said UPPR CEO Joseph Earle. “If you were wondering what we would be doing after our projected first $200 million harvest at the end of the third quarter, this is it.”
CBD producers like UPPR are already facing extremely favorable supply dynamics for the 2019 crop year as soaring commercial demand forces the industry to find ways to expand output from a currently minimal 50,000 kg of CBD isolate to as much as 3.5 million kg before 2023.
With enough light to start the 2020 crop early as well as provide seedlings for other growers, UPPR is now in position to translate what would have otherwise been seasonal slack into a profitable new business line, furthering its mission of becoming one of the world’s only true vertically integrated seed-to-store CBD companies.
Ryan Fox, a noted figure within the national recreational cannabis industry, is providing the equipment through his Fox Organic Farms of Saguache, Colorado in exchange for stock.
Because UPPR has adopted the highest FDA Good Manufacturing Practices (GMP) to support both consumer CBD merchandising partners and pharmaceutical-grade manufacturing, CEO Earle is optimistic that the facility will provide potential partners with the highest-quality seedlings.
“All potential hemp growers should demand valid documentation that the seed or clones they are purchasing meet THC standards and are suitable for industrial production,” he explained. “We can do that.”
An estimated 7% of Americans are currently consuming CBD products, with that population conservatively expanding 30% (to 25 million adults) by 2025. Given fragmentation and inefficiency in the newly legalized industry, strategic leadership is essential.
About Upper Street Marketing and CBD
Now fully legal as a non-psychoactive product of industrial hemp, CBD has been promoted as an effective treatment for everything from arthritis to insomnia. To date, the only FDA-approved uses are for two rare forms of childhood epilepsy. With one of the only integrated “seed to consumer” platforms for participating in all phases of the industry from crop to value-added commercial and clinical product development, UPPR intends to be a leader in FDA cGMP (Current Good Manufacturing Practice) capabilities in the hemp and CBD marketplace.
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the Company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about the Company's business, based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such statements could be affected by risks and uncertainties related to: (i) our ability to execute the Company's business plans with the uncertainty of agricultural crops (ii) product demand, market, and customer acceptance of the Company's products, (iii) the Company's ability to obtain financing to expand our operations, (iv) the Company's ability to attract qualified sales representatives, (v) competition, pricing and development difficulties, (vi) the Company's ability to conduct the business if there are changes in laws, regulations, or government policies related to the Company's products, (vii) the Company's ability to conduct operations if it faces product recalls, and (viii) general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.