On January 28, Cann American announced it had secured a two-year lease on three acres to develop a hemp processing facility.
Subsequently, on May 28, due to various right of way concerns with the neighboring leaseholder, the Company agreed to suspend the agreement until mutually favorable terms could be reached.
Recently, Cann American and the neighboring leaseholder have reached an understanding to allow the project to proceed. Cann American's lease consists of the only existing structures on the property, such as large hangers and barns, that will be retrofitted to develop a hemp processing facility. The primary customer is intended to be the neighboring leaseholder, Craft Herbs LLC.
Craft Herbs is a wholly owned subsidiary of MedX Holdings, Inc. Through Craft Herbs, MEDH CEO, Hans Enriquez, intends to cultivate hemp biomass. Cann American intends to contract with Craft Herbs as well as other regional hemp growers for the processing of the biomass by means of industrial drying and trimming equipment.
The cultivation of hemp has expanded nearly 2000% since 2017. While hemp continues to expand as a commodity, crop loss due to more growers than processors continues to bottleneck the industry. Cann American believes development of a processing facility with a built-in neighboring cultivator will provide significant revenue to both parties.
Cann American intends to begin development of the Laredo facility in either late October or early November of this year.
Stated Cann American Corp. CEO, Jason Black: "I'm very pleased we were able to come to terms that allows this project to move forward. The hemp industry continues to be plagued by more growers than there are processors to meet their yields. Having this strategically positioned operation will be extremely beneficial to both Craft Herbs and Cann American in capturing market share of the hemp industry."
https://www.accesswire.com/665246/cann-american-corp-announces-revised-lease-agreement