India Globalization Capital, Inc. (NYSE: IGC) announces that its
subsidiary Holi Hemp’s application has been approved and that it has
executed agreements with operators to grow and harvest industrial hemp
under the terms and conditions of the Industrial Hemp Program developed
by the Arizona Department of Agriculture (AZDA).
Our strategy is to ensure the highest quality output by controlling the
production of important cannabinoids like Cannabidiol (CBD) and
Cannabigerol (CBG) among others, both as a supplier and to support our
products such as HyalolexTM and Holi HempTM. The
establishment of a grow operation platform is an important step in
achieving these objectives and sets the foundation for CBD based brand
development, fulfilment, and growth.
“We selected Arizona after much analysis including assessing climate,
cost of labor, political environment, local support, logistics, market
penetration, and competition, among other factors. IGC intends to employ
a strategy to plant year-round that reduces the amount of requisite
acreage while taking full advantage of the hot weather to land dry the
bio-mass. Our plan will focus on about 100 acres for extraction with
additional acreage set aside for R&D initiatives. We anticipate having
an extraction facility built in time for the November 2019 harvest but
various factors, for example building permits, could cause a delay. If
we are able to execute on our plans, one acre of hemp can potentially
yield about 2,000 Kgs of dry flower that can potentially be extracted
and refined into approximately 50 Kgs of THC-free CBD distillate with a
current market value of $5,500 to $7,000 per Kg.,” said Ram Mukunda, CEO.
Hemp is a variety of the cannabis plant that has relatively high levels
of the cannabinoid CBD, and levels of the cannabinoid
tetrahydrocannabinol (THC) below 0.3% on a dry weight basis. The 2018
Farm Bill signed into law in December 2018 legalized the growing and
processing of industrial hemp. The risks to the process of producing the
end product include, among others, seed selection and performance,
inclement weather like hail or heavy rain, and the methodology used in
the extraction and refinement process. Current pricing may not be
indicative of future pricing as it depends on supply and demand. Our
rationale for being as vertically integrated as feasible, allows us to
control various factors including and especially the cost of production.
About IGC:
IGC has two lines of business: infrastructure and plant and cannabinoid
derived products. The company is based in Maryland, U.S.A. Our website: www.igcinc.us.
Twitter @IGCIR
Forward-looking Statements:
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are based largely on IGC’s expectations and
are subject to a number of risks and uncertainties, certain of which are
beyond IGC’s control. Actual results could differ materially from these
forward-looking statements as a result of, among other factors,
competitive conditions in the industries, in which IGC operates, failure
to commercialize one or more of the products, services and technologies
of IGC, general economic conditions including pricing for products that
are less favorable than expected, the Federal Food and Drug
Administration’s (FDA) general position regarding hemp based products
and our products in particular, and other factors, many of which are
discussed in our SEC filings. In light of these risks and uncertainties,
there can be no assurance that the forward-looking information contained
in this release will in fact occur.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190613005788/en/
Copyright Business Wire 2019