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Expands into Hemp Cultivation & Processing
HICKSVILLE, NY, July 22, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Canbiola, Inc. (OTCQB: CANB) (“Canbiola” or the “Company”), a developer, manufacturer, and seller of a variety of Cannabidiol (Hemp)-based products, such as oils, creams, moisturizers, chews, isolate, gel caps, and concentrate, announced today that it and its wholly-owned subsidiary, NY Hemp Depot LLC, have officially formed a joint venture with NY – SHI, LLC (“NY – SHI”) and EWSD I LLC dba Shi Farms (“Shi Farms”), a proven existing hemp grow and processing company, to aggregate and purchase fully-grown, harvested industrial hemp from third-party farmers in the State of New York.
The joint venture will operate the NY Hemp Depot Facility for hemp processing in the State of New York. Additionally, it may also sell feminized seeds, clones, and additional materials required to grow industrial hemp and maximize CBD potency. NY – SHI’s cultivating license will be amended to add the NY Hemp Depot Facility. The NY Hemp Depot Facility will empower and enable local farmers, both indoor and outdoor, with technologies, products, and services to help them grow their businesses and revenues. The joint venture plans to aggregate and purchase fully-grown, harvested industrial hemp from farmers in New York, who are growing such industrial hemp on their own properties and, in the future, to solicit farmers to grow industrial hemp on behalf of the joint venture under NY – SHI’s cultivating license.
NY Hemp Depot LLC, a wholly-owned subsidiary of Canbiola, has full and complete discretion to manage and control the joint venture. NY Hemp Depot LLC is providing a building for the operation of the NY Hemp Depot Facility, location services, management, and day-to-day operations, and services for the recruitment of farmers.
Shi Farms, which is a dba for EWSD I, LLC, is a licensed Hemp Cultivation Operation under the Colorado Department of Agriculture, operating a 300-acre farm and 40,000 square feet of research greenhouses. NY – SHI is providing to the joint venture technical expertise regarding the growth and cultivation of industrial hemp, growing technology and expertise, use of its cultivating license that will be amended to add the NY Hemp Depot Facility, and services for the recruitment of farmers. NY – SHI agreed to sell certain products to the joint venture, including feminized hemp seeds and/or clone plants, at the prevailing market price for such products at the time of the sale, for the joint venture to sell to farmers.
Canbiola also has the right to acquire certain isolate from Shi Farms at the cost of processing the isolate from biomass. The biomass would be aggregated and then shipped to Shi Farms’ facility in Pueblo, Colorado, where it would be processed by Shi Farms’ other joint-venture partner, Mile High Labs, Inc. The amalgamation and processing will be done by Mile High Labs’ The Monster (https://www.milehighlabs.com). Shi Farms granted Canbiola’s wholly-owned subsidiary, NY Hemp Depot, LLC, a minority interest in the one and one-half percent payments due to Shi Farms in connection with its agreements with Mile High Labs, Inc.
Canbiola Chief Executive Officer Marco Alfonsi commented, “This joint venture with Shi Farms is a major milestone for Canbiola, as it vertically integrates our positioning and capabilities in the federally legal hemp market. Shi Farms is a trusted, proven, and top-rated CBD wholesaler, and provides us with a cultivation license for the state of New York. This deal allows us the independence from the ever-moving and changing isolate and distillate markets. Canbiola typically buys 150 kilos of isolate per year and this relationship will enable us to save thousands of dollars per kilo. We believe this is a robust growth opportunity for Canbiola and with Shi Farms as our partner, gives us the scale and flexibility to increase our revenue in a profitable manner.”
About Shi Farms
Shi Farms, which operates as a dba for EWSD I, LLC, is a licensed Hemp Cultivation Operation under the Colorado Department of Agriculture, located in Pueblo, Colorado. Shi Farms is a vertically-integrated hemp CBD company that owns and operates a 300-acre farm and 40,000 square feet of research greenhouses. In addition to its corporate-owned land, Shi Farms has launched its Shi Cooperative program to help farmers around the country cultivate hemp. Under its Co-operative program, Shi Farms has expanded into Colorado, as well as Oklahoma, Nevada, and New York.
For more information about Shi Farms, please visit https://www.shifarms.com.
About Canbiola, Inc.
Canbiola, Inc. (OTCQB: CANB) is a developer, manufacturer, and seller of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews, isolate gel caps and concentrates. Canbiola has developed its own line of proprietary products as well as seeking synergistic value through acquisitions in the CBD and the medical cannabis industry. Cannabis is currently federally illegal and has legalized for medical purposes in some form in a limited number of states, but pure CBD products are legal in all 50 states. Hemp CBD is the non-psychoactive component (No THC) used for treatment of pain, inflammation, and wellness programs. For more information about Canbiola, Inc., please visit https://canbiola.com.
Additionally, Canbiola’s wholly-owned subsidiary Pure Health Products, based in Lacey, WA, is its prime development laboratory and production facility. Canbiola’s Duramed division has recently rolled out a durable medical device via its Doctor network to treat patients with injuries via application of an in-home ultrasound sustained acoustic device (SAM) for pain and inflammation reduction.
Forward-looking statements and risks and uncertainties discussed in this press release contain forward-looking statements. The words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape, or manner of our future financial condition or stock price.
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