Emerald Health Therapeutics announced a purchase agreement for CBD hemp biomass for extraction into oils from Emerald Health Hemp.
Emerald Health Therapeutics (TSXV:EMH) announced a purchase agreement for cannabidiol (CBD) hemp biomass for extraction into oils from Emerald Health Hemp.
As quoted in the press release:
EHH has established agreements to purchase approximately 500 acres of harvested hemp chaff, plant material consisting mainly of flower and leaf, in Manitoba and Prince Edward Island in 2018, with a plan to expand field operations in 2019. Emerald has signed an agreement with EHH to purchase approximately 500 acres of chaff in 2018 and approximately 1,000 acres in 2019 to 2022, with an option to renew for an additional two-year period. The hemp chaff will be processed via Emerald’s exclusive alliance with Factors R&D Technologies Ltd., a division of Factors Group of Nutritional Companies Inc., which has extensive extraction experience and large capacity.
In conjunction with Bill C-45, Health Canada recently issued an exemption to holders of Industrial Hemp licenses to begin collecting, drying, storing and transporting the chaff of hemp. After October 17, farmers will be able to sell hemp chaff to licensed processors under Bill C-45.
“We see non-smoked, non-psychoactive CBD consumption as a major growth opportunity in both the medical and adult-use market in Canada, and our Factors Group alliance uniquely positions us with the largest biomass extraction and softgel encapsulation facility in Canada to produce value-added products to serve this market,” said Chris Wagner, CEO of Emerald.