Marijuana Company of America Provides Update on Oregon Hemp Farm’s Biomass Sale
- Company’s joint venture subsidiary, Covered Bridge Acres Ltd. (CBA), generated $525,500 in first year of operation
- Harvest from the hemp farm in Scio, Oregon, runs across 35 acres and incorporates environmentally friendly and biodegradable methods
- CBA is in the process of creating a prototype for an exceptionally innovative machine to reduce the farm’s labor cost
ESCONDIDO, Calif., Aug. 13, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTCQB: MCOA), an innovative hemp and cannabis corporation, and joint venture partner Global Hemp Group Inc. (CSE: GHG/ OTC: GBHPF/ FRANKFURT: GHG) today announced that their joint venture subsidiary, Covered Bridge Acres Ltd. (CBA), has started generating revenue through operations at its hemp farm in Scio, Oregon.
Through a combination of the sales of raw biomass, plantlets, CBD crude oil and CBD distillate produced from various processing test runs, along with other farm operations, CBA generated $525,500 in its first year of operation.
In its most recent transaction, CBA sold 10,000 lbs of shucked biomass to an Oregon extraction facility for $400,000. The CBA team is currently working with this party, and a number of others, to complete the purchase of the remaining inventory.
Initially CBA was expecting to monetize the 2018 hemp biomass after entering into a processing agreement with Richardson Gap Farm LLC (RGF), as disclosed on May 18, 2019. However, RGF was unable to process CBA’s biomass due to unforeseen issues with its processing equipment. Although RGF produces high quality distillate, CBA was no longer willing to delay the monetization of its biomass any further and decided to sell the biomass to another extractor. With multiple offers on the table to purchase the biomass, CBA shucked the biomass (removed stalks and stems) and completed the sale.
CBA still has approximately 4,000 lbs of unshucked biomass out for processing into distillate by additional extractors, and will split the final product on a 50/50 basis with its joint venture partner, Marijuana Company of America, Inc. [OTC: MCOA]. Once processed, it will be sold along with inventory on hand (8 kg of 92% distillate that was processed by RGF from crude oil CBA received from other processors test runs). Recent sales of this type of distillate have been in the $4,000 per kg range.
Innovation and mechanization are key components to reducing labor costs on the farm. In preparation for the handling of this year’s harvest, the CBA team specifically designed a shucking machine to remove the flowers and leaves from the stalk and stems, and is in the process of fabricating a prototype, having reserved a small amount of biomass to test the equipment. Once shucked, the biomass will be processed into distillate for sale on the open market later this summer.
2019 Cultivation at the Scio, Oregon, Farm
A significantly larger quantity of biomass is expected from this year’s harvest as compared to the previous year, due to improved genetics, a longer growing season with earlier planting, and more plants in the ground. This year, the CBA team planted approximately 22% more plants at the farm (49,000 plants compared to only 40,000 in 2018). With the late start in 2018 due to timing of the farm acquisition, CBA’s access to higher quality genetics was limited. As a result, approximately 4,000 male plants were required to be culled from the field, netting approximately 36,000 plants at harvest. With improved more stable genetics this year, the number of male plants required to be culled from the field should greatly be reduced. In addition, cultivars planted this year are expected to produce higher CBD yield from improved genetics.
In addition, incentive stock options have been granted to Directors, Officers and Consultants of the Company to purchase up to an aggregate 5,750,000 common shares of the Company, pursuant to the terms of the Company's stock option plan as approved by the shareholders on April 26, 2019. The stock options are exercisable at a price of $0.06 per share for a period of a five (5) years.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreational use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
MCOA has joint ventured with Natural Plant Extract of California to form a premium cannabis delivery service serving the greater Los Angeles area called Viva Buds Inc. More information can be found on the website at https://vivabuds.com. Viva Buds offers customers a dynamic opportunity to purchase low-cost premium cannabis products and utilize the “call your friend” approach to build their own personal business.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA’s jurisdiction.
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", "intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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Released August 13, 2019