https://stockhouse.com/news/press-releases/2019/03/19/chemesis-international-inc-announces-exclusive-partnership-with-first-medical
VANCOUVER, British Columbia, March 19, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces a partnership with First Medical Cannabis LLC, to commence exclusive cultivation of hemp with high yields of CBD. With the anticipation of hemp legalization in Puerto Rico, the Company continues to increase its foothold on the island and now has the ability to cultivate high yield CBD derived from hemp on a large scale for distribution on the island and the mainland USA.
Initially, Chemesis will have access to 1,000 acres for hemp cultivation, and will have the option to expand up to an additional 5,000 acres of prime agricultural estate. In total, the partnership and joint venture with the First Medical Cannabis provides the Company with access of up to 6,000 acres of agricultural land in Puerto Rico.
Chemesis will leverage its fully compliant facility to manufacture, process, and distribute hemp-derived CBD products. The facility has the ability to off-take all hemp produced by First Medical, and process into finished goods for sale in domestic and international markets, including the continental United States.
The sole member of First Medical holds one of the largest privately-owned land estates in the Valley de Lajas, Puerto Rico, an area that is well known for being one of the most agriculturally prolific regions in the Caribbean. Puerto Rico has a competitive advantage as the climate, soil, and geographical region allow for a much longer growing season. “Since the last of Puerto Rico’s sugar mills closed in 2000, the island has been in need of an agricultural revolution and the hemp industry promises much needed jobs,” said Chemesis CEO, Edgar Montero. “Puerto Rico’s tropical climate makes the island an ideal competitor in the hemp industry, furthermore it will allow the Company to harvest up to 3 crops per year compared to 1 in many areas around the world.”
“As previously announced, the Company has begun cultivating high potency CBD strains and will leverage its licenses and registered seed strains to develop high quality crops. With the passing of the 2018 Farm Bill, Chemesis has acquired the necessary assets and built strategic relationships which will allow the Company to cultivate, manufacture, and ship finished goods across the United States,” added Montero.
Under the terms of this partnership, the company will issue 1,000,000 shares subject to 36 month leak-out and grant the option to purchase up to 1,000,000 shares of Chemesis stock for a period of 24 months, at an option price of $2.12.