World News: 05:15 GMT Tuesday 28th May 2019. [Upper Street Marketing Inc. via Globe Newswire via SPi World News]
SAN DIEGO, CA, May 28, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Upper Street Marketing Inc. (OTC Markets: symbol ) and its wholly owned subsidiary Growing Springs Holding Corp. have entered into an agreement to process 1.5 million pounds of hemp biomass into cannabidiol (CBD) isolates and distillates with a value of approximately $200 million.
Fox Organic Farms will deliver the biomass from its 830-acre Saguache, Colorado cultivation to UPPR-affiliated extraction facilities in October, where it will be converted into pharmaceutical-grade CBD products in exchange for a 50% share of the revenue.
“Ryan Fox is one of the sharpest guys transforming the Colorado agricultural landscape and we are extremely happy to get this opportunity to work with him,” noted Upper Street CEO Joseph Earle. “Hemp is a delicate crop that requires expert handling to optimize CBD extraction yields without going over federal THC limits. We’re eager to see what he brings in.”
Since Fox is a noted figure within the Colorado recreational cannabis and CBD industry, recognizing revenue will be assured that the extracts are produced and delivered — especially given the fact that current CBD supply falls far short of projected demand.
Fortune magazine and other publications have contemplated a 100X surge in CBD consumption between now and 2023, at which point UPPR and other producers will need to ramp up output from a currently minimal 50,000 kg of isolate to as much as 3.5 million kg. An estimated 7% of Americans are currently consuming CBD products, with that population conservatively expanding 30% (to 25 million adults) by 2025.
Fox already has an extensive network of commercial relationships in place through sales of CBD extracts will occur. Even though we anticipate a 10-18% CBD yield, even at a low nominal 5% CBD yield (10-18% is more common), this arrangement can easily generate substantial cash flow for UPPR while its own Colorado hemp crop approaches harvest and extraction.
Recent industry pricing on CBD isolates are running above $3,000 per pound ($7,000 per kilogram) and many organic hemp farmers target yields of 15% CBD or higher.
“While we are eager to bring in our own hemp crop, processing Fox Organic Farms biomass provides us with incremental revenue and a robust proof of concept,” Joseph Earle explains.
“Successful execution will put UPPR on the national map and makes it like that we exceed our initial $75 million revenue target for the year, opening the door to more extensive cooperation with Fox Organic Farms in the future.”
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.
For Further Information Contact:
Upper Street Marketing Inc. .
Phone: (844) 535-UPPR (8777)
Globe Newswire: 05:15 GMT Tuesday 28th May 2019
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2019. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.