Q3 on sedar $32 million of hemp in inventory.
Upon receipt of the required licensing by TruExtracts Regina Inc. (see more detail below), tolling extraction operations will commence.
HTC has entered into a binding letter of intent (“LOI”), with a licensed processor. The parties have incorporated an entity called TruExtracts (Regina) Inc. (“TruExtracts”), of which HTC expects to own 35%, and which ownership will increase to 49% over the next 3 years. Pursuant to the LOI, HTC: (i) will contribute, as a shareholder’s loan to TruExtracts, part of its extraction equipment for installation in the TruExtracts facility located in Regina, SK (“TruExtracts Facility”); (ii) will have access to and the option to utilize 50% of the extraction capacity of the high capacity, extraction, formulation and distillation equipment at the TruExtracts Facility; (iii) obtained a contractual commitment for the processing of hemp biomass, owned and supplied by HTC’s wholly owned HempCo, for a minimum 3-year term; and (iv) enjoys profit sharing in the revenue of TruExtracts. The licensed processor has applied for its license to be extended to the TruExtracts Facility.
TruExtracts (Regina) Inc.
HTC has entered into a strategic business partnership and letter of intent with TruExtracts (Canada) Inc. (“TruE”), whereby HTC will own 49% of a subsidiary of TruE named TruExtracts (Regina) Inc. This new company will operate out of a 7,000 square foot, leased and previous Health Canada Licenced facility in Regina. The extraction, refining and formulation equipment will be provided by HTC, under a shareholder loan repayment arrangement. The agreement in place allows HTC the option to utilize 50% of the extraction, refining, formulating, and packaging capacity of the facility to toll process its own viable biomass.