Global Hemp Group Inc. ( OTC:GBHPF ) signed a Definitive Agreement with Prescient Strategies Group LLC to acquire all of its Western Sierra Resource Corporation (OTC: WSRC) Preferred A Class Share holdings in a private, third party transaction. The deal is expected to close on or about February 9, 2021 upon fulfillment of certain conditions including:
- – WSRC restructuring certain unsecured debt prior to the issuance of the GHG Prefs;
– GHG providing the necessary initial payments to complete the transaction and other Debt Restructuring (completed).
The company said in a statement that the resulting acquisition of these WSRC Prefs will give GHG control over WSRC, and specifically its strategic water infrastructure assets that will be an integral part of the Company’s Colorado Hemp-Agro Industrial Zone project. Documented historical valuations of the 4,000-acre feet of water rights and associated infrastructure are based on 2013 and 2015 MAI appraisals and engineering reports, which collectively support a value ofS$40,000,000 or higher. GHG has contracted a third party valuation of this initial assessment value to support such appraisal.
The Colorado HAIZ will be developed under the banner of Innovative Hemp Technologies. IHT’s core objective; to develop “green” and “affordable” homes in a Planned Unit Development utilizing hemp-based construction materials to meet historical pent-up demand in the area, which will include the development of large scale irrigation and cultivation of industrial hemp, and the manufacture of hemp-based construction products and textiles. This will significantly expand the existing water rights and infrastructure assets while generating multiple revenue streams for the Company.
By utilizing a campus setting like that of the HAIZ, the company said it will efficiently implement these vertically integrated functions (water, agriculture, processing, housing). Proven industry professionals have been engaged to work alongside IHT’s management in the areas of agriculture, R&D, manufacturing, and construction to achieve the Company’s objectives.
Execution of the HAIZ project will create substantial shareholder value through the incremental introduction of additional (multiple) revenue streams to meet IHT’s objectives and set GHG on a path to become a leader in sustainable hemp-based “green” construction in the United States. The Colorado “HAIZ” will become a “showcase” project to demonstrate “green” hemp construction products and technologies for third-party offtake and for replication in other suitable U.S. markets.
The project will leverage the existing water rights and infrastructure to turn “dry land” farming acreage into irrigated land with valuable water rights that can subsequently be used to develop “affordable housing” and high-value agricultural crops such as industrial hemp. GHG’s vision is to take the hemp grown onsite and replace as much of the conventional building materials used at the project with sustainable, hemp-based building materials used in the housing development. This project contemplates a 25-year build-out. The luxuries of a long-term project with demonstrably high demand are:
- a) economies of scale;
- b) opportunity to implement learned efficiencies;
- c) opportunity to continually fine-tune product offerings though intimate familiarity with a specific market;
- d) access to new markets stemming from other by-products of the hemp processing, such as fibre and microfibre.