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VANCOUVER, Sept. 23, 2019 /CNW/ - Clean Commodities
Corp. (TSX VENTURE: CLE) ("Clean
Commodities" or the "Corporation") is pleased to
announce that it intends to spin-out its wholly-owned subsidiary,
Western Hemp Corp. ("Western Hemp" or "WHC" or
"SpinCo"), to the Corporation's shareholders. Western Hemp
is a licensed hemp producer under the Cannabis Act
(Canada) and is pursuing a
high-margin CBD-focused business model. In conjunction with the
spin-out, SpinCo intends to seek a listing on the Canadian
Securities Exchange.
"For many quarters, our cash treasury has remained strong and in
excess of our ongoing capital needs. Our decision to allocate a
portion of our resources to deliver a licensed producer to our
shareholders is an exciting development. Western Hemp Corp.
represents an exceptional opportunity for shareholders to benefit
from the development of a tier-one hemp/CBD platform leveraging
multiple crop locations at climate-optimized properties within
Western Canada," stated
Ryan Kalt, CEO of Clean
Commodities.
About Western Hemp Corp. ("Western Hemp" or "WHC" or
"SpinCo")
Western Hemp holds an Industrial Hemp License (the "IHL")
issued in accordance with the Cannabis Act (Canada).
The IHL held by WHC is in good standing through August 2021 and is renewable thereafter.
Western Hemp has a near-term focus on its hemp production
facilities located in British
Columbia's "Green Triangle", with a longer-term view of
vertical integration and expansion in the broader cannabidiol
market. The company is incorporated under the laws of British Columbia and has a head-office in
Vancouver, British Columbia.
Western Hemp is currently positioned to deliver approximately
one-quarter of a million pounds of dried-flower in 2020 through its
control of 300+ acres of cultivation capacity across 3 facilities,
as follows:
Lillooet, British Columbia –
Hemp Farm (Production)(the "Lillooet Farm")
The Lillooet Farm is a 150 acre industrial farm held on a
leased-basis. Western Hemp is targeting 2020 production at the
Lillooet Farm of 120,000 pounds of dried flower with a strain
concentration of 5% CBD (+/- 1%).
Lillooet is a community located
on the Fraser River in British
Columbia about 240 km up the British Columbia Railway line
from Vancouver. The location
provides a premier plant growing environment offering a long
growing season within a dry climate situated in what is often
Canada's hottest summer location
on a daily basis.
Kamloops, British Columbia –
Hemp Farm (Production)(the "Kamloops Farm")
The Kamloops Farm is a 75 acre industrial farm held on a
leased-basis. Western Hemp is targeting 2020 production at the
Kamloops Farm of 60,000 pounds of dried flower with a strain
concentration of 5% CBD (+/- 1%).
Kamloops is a city in
south-central British Columbia at
the confluence of the two branches of the Thompson River and east
of Kamloops Lake. The Thompson Valley, in which Kamloops sits, has dry and sunny weather with
daytime humidity below 40% during summers therein offering a robust
plant growing environment.
Walhachin, British Columbia
– Hemp Farm (Production)(the "Walhachin Farm")
The Walhachin Farm is a 75 acre industrial farm held on a
leased-basis. Western Hemp is targeting 2020 production at the
Walhachin Farm of 60,000 pounds of dried flower with a strain
concentration of 5% CBD (+/- 1%).
Walhachin is a rural community located in British Columbia and is situated in between
Kamloops and Lillooett alongside
the Thompson River and on route of Canada's TransCanada Highway. The hot, dry
climate combined with irrigation water from the Thompson River
enables high-yield plant cultivation.
The Corporation also advises that Western Hemp is reviewing
higher-CBD yielding strains but the commercial availability of such
strains for the forthcoming calendar year will be dependent upon
their status as an approved cultivar for 2020 by Health Canada.
Western Hemp intends to evaluate further growth opportunities
once publicly listed.
WHC Appointment of VP, Operations
The Corporation also announces that it intends to appoint Mr.
Will Ciancone as VP, Operations for
Western Hemp subsequent to its spin out to the Corporation's
shareholders. Mr. Ciancone previously served as the VP, Operations
for Pacific North Hemp Inc. and has numerous years of experience in
the cultivation and harvesting of industrial hemp.
It is expected that the current CEO and CFO of the Corporation
will assume the same titles of Western Hemp, and that current
directors of the Corporation will assume the same positions at
Western Hemp.
Additional Information
It is anticipated that in conjunction with the spin-out, Western
Hemp will seek to obtain a public listing during the fourth quarter
of 2019 on the Canadian Securities Exchange.
As at June 30, 2019, the
Corporation had 102,648,746 common shares outstanding. It is
expected that each common shareholder of the Corporation will
receive a full or pro-rata common share of Western Hemp. Current
shareholders of the Corporation are expected to hold 100% of the
resulting issuer, exclusive of any SpinCo specific dilution
associated with any growth-related capital financings that may
coincide with an exchange listing.
The Corporation intends to pre-fund Western Hemp in advance of
its public listing. As at June 30,
2019, the Corporation had cash on-hand of $1,687,529, as compared to cash-on hand of
$1,609,346 as at June 30, 2018.
Additional information on the terms of the spin-out of Western
Hemp will be forthcoming to shareholders in due course.
Clean Commodities acquired the IHL through the closed
acquisition of Western Hemp on September 12,
2019 in exchange for nominal cash consideration to an
arm's-length party.
The Corporation itself intends to remain listed as a mining
issuer on a Canadian-based exchange in accordance with its
normal-course, ongoing and principal mineral exploration
business.
About Clean Commodities Corp.
Clean Commodities Corp. (TSXV:CLE) is a mining exploration
company involved in a diverse portfolio of clean commodity assets
including uranium and lithium projects. For more information,
please visit www.cleancommodities.com.
Signed,
Ryan Kalt, Chief Executive
Officer
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently expected or forecast in
such statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Clean Commodities Corp.