World News: 13:00 GMT Wednesday 12th June 2019. [HempAmericana, Inc. via Globe Newswire via SPi World News]
NEW YORK, June 12, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- HempAmericana, Inc. (OTC: HMPQ) (“HempAmericana” or the “Company”) CEO issues the following letter to Shareholders:
Dear Valued Shareholder,
As we begin to establish growing momentum in our core CBD Oil production and distribution business, I wanted to take this opportunity to express our gratitude for your commitment and loyalty to our long-term value proposition and to discuss our current opportunities and our roadmap as we gear up to execute on the powerful opportunities that lie ahead.
As you know, we have commenced bottling 500mg and 1000mg full-spectrum CBD distillate in our state-of-the-art CBD extraction and production facility in Augusta, Maine. Our inaugural production expectations are set at production of 2,000 bottles per day with a gradual increase to 8,000 bottles per day to fill demand. We already have over 50,000 bottles of full-spectrum distillate bottled and ready to ship with tens of thousands to follow.
We are also bottling a 250mg potency, which is perfect for the CBD-for-pets market. And, on the high end, we are also bottling 2500mg and 5000mg strengths, but we can replicate any formula.
Much of this production will be distributed under our proprietary brand, “Weed Got Oil”. But we are also actively pursuing a major place in the white label market for premium full-spectrum distillate CBD oil. There are over 400 brands now in the CBD space, and most of them turn to a major high-capacity producer, like HempAmericana, to build up an inventory of product.
For example, we recently announced a new relationship with Eagle Hemp of Florida (“Eagle Hemp”), located in the West Palm Beach area. This relationship now comprises an initial large purchase order and a clear path for a continuing series of purchase orders set to roll out over coming months and quarters.
The terms of the deal provide a window into the framework we have been working toward as we leverage our capital investments in our Augusta facility for the white label opportunity. We are set to receive strong demand at strong terms, including compensation for high-volume production of our premium CBD Oil output as well as our bottling technology.
In all, just in the first of these planned orders, we will receive a substantial revenue input, with no costs associated with bottling, labeling, or shipping of the final product.
Eagle Hemp is just one of many customers currently in play for our premium product output. The CBD market is turning out to be every bit the juggernaut that the major analyst firms have been suggesting over the past year. Estimates now range from several hundred to several thousand percentage points of gross sales expansion in the space over the next 36-48 months, which is a reasonable definition of boom conditions for a major industry in robust infancy.
The driver here, as we have elaborated in past communications, is about the seemingly bottomless demand growth function that accompanies the evolution of a product category from fringe consumer niche to mainstream adoption.
It is also important to note that we continue to receive requests from other industry customers and we are in the process of investigating the credibility of such requests and in negotiating similar terms for concrete relationships.
In addition, our production facility and lab are running along in amazing fashion. We now have two bottling machines active and operational due to the tremendous interest coming in the door. Once we have distilled this interest into official purchase orders, we will divulge them in our communications.
We also want to announce that our vaping machine is active and fully operational, we are now ready to produce and sell CBD vapes.
Finally, as we continue to expand, diversify, and integrate, we are now also working on plans to build a greenhouse dedicated to cultivating super-enriched seeds. We have always been committed to the long-term goal of fully controlling our production ecosystem from seed to product, and this is the next step in establishing that fully vertical model, where we see the strongest margins.
Best Regards, Salvador Rosillo
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.
Globe Newswire: 13:00 GMT Wednesday 12th June 2019
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