Whole Plant Utilization Now Permitted,
Enabling Development of New Revenue Streams
TSX.V – HEMP
VANCOUVER, Aug. 15, 2018
/CNW/ - Hempco Food and Fiber Inc. (TSX.V: HEMP)
("Hempco®" or the "Company") today comments on Health
Canada's publication of the Subsection 56(1) Class Exemption in
relation to the use of hemp under Industrial Hemp regulations
(flowering heads, leaves and branches).
The exemption, published on August 10,
2018, enables companies with the relevant licenses to
commence using the whole hemp plant for commercial purposes, which
was prohibited under previous regulations. The exemption will
remain in place until the scheduled implementation of the Cannabis
Act on October 17, 2018, which allows
for whole plant utilization from that date onwards.
"This historic decision clears the way for whole hemp plant
utilization, a complete game changer for our industry, allowing
Hempco to develop new revenue streams in potentially very
significant markets," said Diane
Jang, CEO of Hempco. "The exemption allows us and our
strategic partner, Aurora Cannabis Inc., to commence extracting CBD
from hemp and develop a new line of health products, a market with
considerable potential."
Prior to implementation of the exemption, hemp growers were
required to discard a sizeable portion of the hemp plant as waste.
Under the new regulations, companies can immediately collect,
harvest, dry and store industrial hemp flower, buds, leaf materials
and branches. These materials contain very valuable raw materials
that can be used to produce nutraceuticals and health products.
These are markets where sustainability principles and
health-related considerations are generating positive momentum for
the adoption of new raw materials, such as hemp, creating
significant growth potential.
Hempco has established a considerable network of suppliers of
harvested hemp, providing the quantities of raw materials needed to
produce these new products in large quantities.
Ms. Jang added, "The extraction of CBD allowed for under the new
Act is another key component of our growth strategy, and we are
well positioned to take advantage of this enormous opportunity.
Together with our strategic partner and majority shareholder Aurora
Cannabis Inc., we are now in prime position to develop quality new
products and take our hemp business to the next level. The combined
distribution channels of Aurora and Hempco, as well as Aurora's
technology partners create both capacity and broad market reach,
enabling us to pursue accelerated growth."
Health Canada : Controlled
Drugs and Substances Act (CDSA) - Section 56 Revision :
https://www.canada.ca/en/health-canada/services/health-concerns/controlled-substances-precursorchemicals/policy-regulations/policy-documents/section-56-class-exemption-industrial-hempregulations.html
About Hempco
For more than 12 years Hempco has been a
trusted and respected pioneer, innovator and provider of quality
hemp-based foods, hemp fiber and hemp nutraceuticals. Hempco
produces and markets the brands Planet Hemp and Praise, hemp-based
foods and nutritional supplements for people and
animals. Hempco is expanding its processing ability to meet
global demands in a 56,000 sq. ft. facility located at Nisku, Alberta. Hempco's common shares trade
on the TSX Venture Exchange under the symbol "HEMP".
On behalf of the Boards of
Directors,
HEMPCO FOOD AND FIBER INC
Diane Jang
CEO
The TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements in this press
release include the Company's anticipation of further growth, its
expectation that continued spot inspections by the Canadian Food
Inspection Agency will strengthen its standing as a trusted
supplier, its intent to achieve the BRC Global Standard for Food
Safety and its efforts to implement these standards at its
Nisku, Alberta facility, its
expectation that the Nisku
facility will be operational by Fall 2018. These statements
are only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Companies
are under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
SOURCE Hempco Food and Fiber Inc.