ESCONDIDO, Calif., Aug. 21, 2018 (GLOBE NEWSWIRE) -- via NetworkWire - MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation, and its joint venture partner Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (Frankfurt: GHG) (the “Partners”) are pleased to provide an update on their CBD hemp farming joint venture in New Brunswick, Canada (the “Project”).
The goal of the hemp project in northeast New Brunswick is, in part, to produce hemp biomass that can be used for the extraction of cannabinoids. In anticipation of Canada’s implementation of the Cannabis Act on October 17, 2018, which will allow for the processing of the entire hemp plant, the Partners began preparing its Bathurst facility for the installation of drying equipment capable of drying 125 acres of flowers and leaves from the 2018 cultivation.
The flowers and leaves of the hemp plant are rich in cannabinoids, notably containing non-psychoactive compounds of Cannabidiol (CBD). CBD, which has gained increasing popularity as of late, has been found to be effective component in a complete personal wellness regimen that has produced an increased demand from consumers for products containing CBD. The Hemp Business Journal estimated that the CBD market will grow to a $2.1 billion market in consumer sales by 2020.
Health Canada issues Class Exemption to the Industrial Hemp Regulations
Health Canada, the governing body in charge of industrial hemp licensing and its regulations in Canada, has recently issued a new Class Exemption in Relation to the Industrial Hemp Regulations (flowering heads, leaves and branches). This will allow the Partners to legally harvest, dry and store flowering heads, leaves and branches of industrial hemp from its 2018 cultivation, prior to the implementation of the Cannabis Act on October 17, 2018, when extraction of CBD from the flowers and leaves from industrial hemp will be legal in Canada. This will enable the industry to take advantage of an entirely new product market utilizing hemp derived cannabinoids.
New Brunswick Facilities
A 4,000 sq. ft. facility was secured in Bathurst, NB for the project in June. The Joint Venture established its offices and soon will complete the installation of processing equipment in the facility. A biomass dryer to process the flowers and leaves from participating farms will be installed before the end of August. The dried flowers and leaves will be stored until mid-October when the Joint Venture is allowed to sell its product to CBD extractors. Once proper licenses have been acquired for importing and manufacturing finished CBD products, the Bathurst facility may also serve as a distribution center for the hempSMARTTM products that are currently manufactured and distributed in the United States by GHG’s partner: MCOA.
Advanced Crop Monitoring – Successful First Drone Flight
In a large hemp field with tall dense crops, it is impossible to identify stressed areas from ground level. The use of specialized drones can provide targeted field diagnostics. When a stressed area is identified, the observer can move directly to that location to assess the conditions of the observed stress.
Three drone flyovers have been contracted for the project. Each flyover will provide a colored image indicating the state of the vegetation, with data collected from random points in the different colored zones to assess the actual conditions on the ground. Data collected includes the measurement of soil moisture, pH, plant height and insect-disease-pressure. Once properly calibrated, these images will become an effective crop management tool for future crops in the region.
Severe Drought
Northeast New Brunswick has been experiencing a severe drought this year. The incidence of the drought has varied in intensity, but is widespread across the region. One of the participating farmers reported that this year’s drought was the worst he experienced in his lifetime. While most crops of the region were hit very hard, as revealed by farm-gate prices of hay, hemp has fared relatively well, as it is far less water consumption demands. Preliminary observations collected from the first drone flyover over three of the farms indicate the extent of the stress observed.
It is noted that of the three varieties cultivated this year, the Joey and Canada varieties fared better than the Finola. Preliminary testing has indicated that the output of flowers and leaves does not appear to be affected by the drought. The attached photo shows the flowers that have been produced.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreational use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG), is headquartered in Vancouver, British Columbia, Canada, with base operations in Montreal and Los Angeles. The Company is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry in both Canada and the United States. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
For more information, please visit the Company’s websites at:
MarijuanaCompanyofAmerica.com
hempSMART.com
NetworkNewsWires/MCOA
Corporate Communications Contact:
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A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/eeb941dd-a6f7-487f-a9c1-ca35c9a35a75