VANCOUVER, BC / ACCESSWIRE / September 30, 2020 / GLOBAL HEMP GROUP INC. ("GHG" or the "Company") (CSE:GHG)(OTC:GBHPF)(FRANKFURT:GHG) is pleased to announce that it has executed an agreement to acquire the remaining 50% interest in the Oregon Hemp Project from its joint venture partner Marijuana Company of America Inc. ("MCOA"). Upon completion of the transaction, the 109 acre Scio, Oregon farm and operating company Covered Bridge Acres Ltd. will become wholly owned by Global Hemp Group and dissolve the existing joint venture.
The terms of the agreement:
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GHG will make a payment of $USD210,000 to MCOA with $USD 135,000 payable no later than September 30, 2020 (funds in hand and transferred today) and the remaining $USD 75,000 payable no later than November 15,2020.
- GHG will grant to MCOA common stock from its treasury for an amount equal to $185,000 based on the trading price of GHG's stock at the time the settlement agreement is fully executed before September 30, 2020.
The parties agree that the settlement results in GHG owning 100% of the existing Joint Venture. Irrespective of the agreement entered into, the parties mutually agree to sign any ancillary documents that could be required from time to time to give full force and effect of said agreement.
Resulting financial reporting change - Upon completion of this transaction, Global Hemp will own a 100% economic interest and have control of the Scio Oregon Operation and the 109 acre farm (SCIO), making it a 100% wholly own subsidiary. As such, the assets, liabilities, revenue and expenses will be fully reflected in the Company's Consolidated Statement of Financial Position and Consolidated Statement of Operation. Prior to Global Hemp's acquisition of control of the Scio Oregon hemp farm and operation, the Company records its investment in SCIO in a line item called Investment in Associates on the Statement of Financial Position. In the Statement of Operation, only net profit/loss has been reported in a line item called gain/loss on Investment in Associate.
The Company also announces that the Company received short term loans in the amount of C$50,000. These non-interest bearing loans are due and payable on or before November 15, 2020. A bonus of 1,700,000 common shares was paid to the Lenders for this transaction. All securities issued are subject to a four-month plus a day hold period from the date of issuance in accordance with applicable securities laws.