Vancouver, BC -- (April 26, 2023) -- GLOBAL HEMP GROUP INC. (“GHG” or the “Company”) (CSE: GHG / OTC Markets: GBHPF / FRANKFURT: GHG) is pleased to announce that the Company has executed the first North American sublicense for sales and revenue generation in the United States, relating to the recently acquired exclusive license to Apollon Formularies plc’s (“Apollon”) patents and IP.
Global Hemp Group, Inc. issued a Non-Exclusive Sublicense to Medicinal One, LLC, a Florida corporation, specifically for online eCommerce sales of the Apollon Branded products including both functional mushroom and hemp-based products. This will include Apollon’s unique patent protected mushroom/hemp-based combination product line.
Under the terms of the agreement, Medicinal One will pay an in-kind up-front payment that will cover the costs of creating and hosting the eCommerce website, manufacturing the products, promoting the products through various targeted social media ad campaigns, product order fulfilment and direct shipping. In exchange for this non-exclusive sublicense, Medicinal One will pay GHG a 20% gross revenue royalty on all sales monthly. This represents a significant opportunity for GHG to generate revenue in the online eCommerce market throughout the United States where functional mushroom and hemp-based products are legal.
According to Zion Market Research, the global functional mushroom market size was evaluated at $15.3 Billion in 2022 and is slated to hit $23.3 Billion by the end of 2030 with a CAGR of nearly 10.1% between 2023 and 2030…. North America is anticipated to lead the global functional mushroom market growth over the projected timeline due to a surge in the intake of mushrooms as superfoods.¹
The manufacturer that the Company is working with to supply these products has a long history in developing and supplying hemp-based products to the market and has recently expanded into functional mushroom formulations, making them the ideal manufacturer for this project. In addition, the Company has been in discussions with this manufacturer to partner with the Company to manufacture and distribute additional Apollon products not currently covered under this non-exclusive sublicensing agreement.
"We are excited about the opportunity to work with Medicinal One, and we believe that this partnership will be beneficial for both companies," said Stephen Barnhill, Jr, President and CEO of Global Hemp Group, Inc. "This agreement provides GHG with a platform to reach a much wider audience and generate revenue through the online sales of our Apollon branded products. We look forward to working with Medicinal One to maximize the potential of this partnership."
Scott Markowitz, CEO of Medicinal One stated “We are thrilled to introduce and sell the Apollon functional mushroom and hemp-based products, as well as the functional mushroom/hemp-based combination product line through our online eCommerce platform for sales and shipping throughout the United States where these products are legally allowed. The eCommerce sector has observed a significant rise in popularity as the number of people using mobile phones has increased globally in the last few years simplifying the process of online sales.”
The company also wishes to address numerous shareholders inquiries regarding the consolidation of the common shares of the Company and the expiration of the warrants trading on the CSE under the symbol GHG.WT. With respect to share consolidation, GHG has no immediate plans for a share consolidation for the foreseeable future. With respect to the expiry date of the warrants, per the CSE Policy 6.7(3)(a), terms of listed warrants cannot be amended, therefore the expiry date for this group of warrants will remain September 8, 2023.
References:
¹ https://www.zionmarketresearch.com/news/global-functional-mushroom-market