Hemp

FREMONT
HEMP PROJECT

CGM management team is pursuing commercial propagation of High-CBD content industrial hemp seed through greenhouses on its property in Mariposa County California.

Hemp-CBD sector on the cusp of rapid growth

Industrial Hemp

  • CBD has numerous medical uses, e.g. treatment of chronic pain, PTSD, Multiple Sclerosis, Epilepsy
  • 2018 US Farm Bill has fully legalized industrial hemp on a federal level
  • With < 0.3% THC content, industrial hemp has no psychoactive effect
  • Hemp-derived CBD market is expected to grow nearly 40 times to US$22 billon by 2022

Hemp-Derived CBD Market Size in Billions ($)

Study by Brightfield Group – September 2018

Hemp cultivation operation strategy

  • 27,000 sq. ft. greenhouse to be constructed on CGM’s Fremont Property – fully operational by Q3 2019
  • Propagation of feminized low-THC, high-CBD industrial hemp seeds with stable genetics
    • Estimated Market Price: USD $15,000 – $30,000 per lb
  • LOI received from Delta Valley Hemp for forward sale of production in 2019 and 2020 up to 5000 lbs of seed at market price less 5%.

Project fully financed

Total Greenhouse CAPEX + OPEX (First 12 months) is USD $3.0-million

Credit facility already secured for USD $3.0-million

Retained hemp cultivation expertise

Consulting agreement signed with Delta Valley Hemp

DVH to implement greenhouse-based industrial hemp seed propagation on CGM’s Fremont Property

DVH assumes all development and management responsibilities

DVH & CGM work on ‘exclusive’ basis in the states of California, Oregon, Washington, Nevada, Arizona

Delta Valley Hemp

Leading US-based industrial hemp cultivation consulting firm with the following core competencies in the industrial hemp space:

  • Greenhouse Propagation
  • Biomass Cultivation
  • Soil Analysis & Amendment
  • Seed Genetics
  • Crop Insurance
  • Permits & Licencing
  • Brokering of Hemp Products (including seed, biomass, extracts & isolates)