NEW YORK, Nov. 07, 2017 (GLOBE NEWSWIRE) -- HempAmericana, Inc. (OTC:HMPQ) (the “Company”) is excited to provide a critical shareholder update as the Company continues to ramp operations at its Portland, Maine facility. Including details related to the installation, housing, and operational launch of its CBD extraction machine, the Company also wishes to report details related to its recent move to sharply reduce outstanding share count, as well as to announce plans for a major strategic revamping of the Company’s online internet presence and sales platform, which will accompany the launch of full-scale operations at the Maine facility: in-house extraction of 100% pure CBD Oil and synchronous production of a full spectrum of Supercritical C02 Extracted CBD Products involving no solvents and no added chemicals.
Nearing Production. The Company recently executed a five-year Lease, with an option to acquire the building for $2.175 million. The building itself is a 26,000-square ft. indoor facility in Portland, Maine. The lease includes 8 acres of surrounding land along with the primary indoor operational facility. The site will house the Company’s first 10 Liter CBD extraction machine (purchased in 2016). In addition, the site will also house its new 200-liter Supercritical C02 Extractor machine, which management expects to be delivered in Q1 2018.
The building is also designed to efficiently manage large-scale shipping activities, including docking and loading facilities for a full-range of delivery vehicles as well as a drive-on scale for freight vehicles. This will allow the company to seamlessly address distribution as production comes online.
The Company has made a deposit on the new 200-liter Supercritical C02 Extracting machine and expects to have it built and delivered sixty (60) days after the company pays fifty percent (50%) of the agreed-upon purchase price. At that time, the manufacturer and the Company, per agreement, will proceed with a 12-month financing plan to service the remaining balance. The Company anticipates taking delivery of the machine by Q1 2018.
In the interim, production is coming online utilizing the Company’s existing 10-Liter Extraction machine. Manufacturer specifications support an expected yield from this machine of 25 lbs. of hemp material per day, in turn producing approximately 100 grams of CBD oil per day as initial operations ramp up. However, management believes that it may not be long before those numbers are dwarfed by the productive yield of the larger 200-Liter machine once it has been installed and ramped up to full capacity. According to Company models based upon manufacturer specifications, production levels should exponentially accelerate, eventually reaching a 100% increase in total operational output.
Streamlining Share Count. In addition, the Company is pleased to report a significant reduction in total outstanding shares. The reduction of 2.25 billion shares takes the share count down from 6 billion to 3.75 billion, with aggressive plans to continue with further reductions in the very near future.
"The dilution has ended. Shares were previously issued to satisfy the REG A + offering, which took the better part of 15 months to receive approval from the SEC. The REG A + allows the Company to sell up to 4 Billion shares, without restrictions, at the fixed price of $0.005/share. This is a useful fundraising tool for expanding operations and will help the Company advance toward our key long-term objectives on sure capital footing. However, we are now moving rapidly in the other direction to become trim and lean on the cap table going forward," said Salvadore Rossillo, CEO.
Ramping Marketing and Sales. Finally, marketing and distribution efforts are beginning to come together to align with the company’s production schedule for CBD Oil and CBD-related products. The company continues to seek joint ventures for sales avenues, and expects this to be a primary strategic tool to rapidly market product supplies once full-scale production has commenced. In addition, management notes that the company is budgeting sufficient capital for its own online sales and distribution platform on its revamped corporate website.
Management believes the timing of the launch of full operations at the Maine facility could not be coming at a better time. The market for CBD products has continued to accelerate and is now estimated to grow by 700% through 2020, according to Forbes. In fact, a new report by the Hemp Business Journal projects that the CBD market will grow to $2.1 billion by 2020, which represents an extraordinary growth in market size from last year’s CBD market of $202 million.
The Company projects generating initial sales from related operations in Q1 2018.
About HempAmericana, Inc.
HempAmericana is currently in the rolling paper and CBD oil business using the brand name Weed Got Oil. Search Rolling Thunders hemp papers on YouTube for a product demonstration of the Company's papers. The company owns an extraction machine and now plans to become a leader in the CBD oil market by establishing three laboratories for the extraction and research of the oils contained in the hemp plant. HempAmericana also researches, develops and sells products made of industrial hemp. See more at http://www.HempAmericana.net.
Safe Harbor:
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review Hemp Americana annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.
Contact:
HempAmericana, Inc.
Salvador Rosillo
CEO
HempAmericana@gmail.com