Acquisition Details: what do we know so far?
Bezinga claims the acquisition includes production equipment, formulation, sales channels, fulfillment centers, and a management team. Hemptown will have a fully operational facility at their disposal. This includes equipment that would allow precise dose measurements for CBD and CBG liquid. Kirkman has a purported $6 million in annual revenue. Mr. Humphreys will remain on with Hemptown, in a position to be later determined.
An Unsurprising Move Given the Market’s Trajectory
Since the passing of the 2018 Farm Bill, the US market for industrial hemp and hemp-derived products has skyrocketed. Largely driven by public demand for CBD, and the crop’s enormous revenue potential, an ever-increasing number of businesses and farmers are moving into the niche.
Companies like Next Green Wave have quickly moved to establish market dominance, vertically integrating and controlling the production of their end products from seed to store shelves. With the CBD industry projected to edge into the billions and the industrial hemp industry projected to reach over $13 billion by 2026, institutionalized and individual investors alike are scrambling to get in early.
About Hemptown Organics Corp
Hemptown’s business model looks poised and well-positioned for global market expanse. With an area dedicated to investors on their website, they plan to dive into the CBD and especially the CBG business shortly. Hemptown is thinking about retail and they’ve structured their business plans accordingly. They have said they plan on expanding in their current locations, as well as into northern California. According to GreenMarketReport, Hemptown claims to be one of the largest CBG producers in the U.S. with their purchase of 1 million CBG seeds for 2019. They plan to continue to produce strains rich in other cannabinoids such as CBC, CBDV, and CBGV. They hope that their obtainment of Kirkman will help push them into the wellness industry.
Alone, Hemptown Organics Corp. claimed to have 1,550 acres, plus 3,000,000 pounds in biomass, and $100,000,000 in revenue.
With properties in Oregon, Kentucky, and Colorado, Hemptown Organics is a well-established business. In Oregon, they call their land the Emerald Triangle, with 500 acres in 2019, and up to 1,000 acres in 2020. In Kentucky, they produce some of the finest hemp on 600 acres of land in 2019, and up to 1,000 acres of land in 2020. Their Colorado land has an advanced infrastructure with soil conditions and a climate that is ideal for growing their best genetics. This property was up to 500 acres in 2019, and up to 1,000 in 2020.
They claimed to grow plants containing less than 0.3% THC and cannabinoid-content up to 20%. Their products include dried flowers, oils and extracts, CBG, Suver Haze, Electra, and Sour Space Candy.
The Suver Haze is described as earthy, sweet, and sour, reminiscent of apples. Electra is earthy, piney, and woody, one of the most potent strains in the world. Sour Space Candy is sweet with fuel, an interesting plant that blooms golf ball-sized flowers.
Their CBG chemotype seems to be an exciting addition to the other chemotypes. According to their site, most chemotypes have under 10% CBG, while CBG-rich chemotypes could contain as much as 94% CBG. They claim, that like CBD, CBG does not cause psychoactivity. They believe they have a market-leading seed genetics process which is about to scale at an unprecedented rate in 2019.
Their mission is to deliver the best quality products which can be cultivated. Their dried flowers are harvested, cured, trimmed, packed, and stored using high-quality practices. They also use crude, distillate, and isolate processes when extracting.
Hemptown Organics had a team of 6, including Rod Wolterman as Founder and Chairman, John Cummings as the CEO, Ross Westbrook as the COO, Michael Townsend as President, Keith Stride as CMO, and Bruce Trent as VP Global Sales.
Hemptown has also been in the media extensively. Publications they’ve been featured in include HEMP, MJBullsMedia, Hemp Industry Daily, CFN Media Group, Equity.Guru podcast, That Oregon Life, and Terpenes and Testing Magazine.
Kirkman operates a 25,000 square-foot nutraceutical facility that is CGMP certified and licensed by the U.S. Food and Drug Administration. They are a Lake Oswego, Oregon-based business. They have been making formulations for children with special needs, including children with autism. They carry a wide variety of supplements including hemp oil extract, children’s probiotics, amino acids, and vitamins for patients between 60 and 90.
Founded in 1949, by Lyle Wellman and Bill Graham, they operated Kirkman until 1967, when they sold it to Stan Bachman who then moved it to Portland. Soon after, in 1967, a doctor, Dr. Rimland, wrote to him seeking a manufacturer for a multi-vitamin he developed for special needs children.
Once Bachman wanted to retire, he sold Kirkman to Ken and Helen Humphrey. They became close friends with Dr. Rimland. Together they created a formula called Super Nu-Thera, which became Kirkman’s bestselling product by the year 2000.
The Humphrey’s son, David, continued to expand on their product supply of supplements, specially formulated for customers with sensitivities. They instituted a standard of purity check to keep harmful pollutants, insecticides, biocides, and harmful chemicals out their products. In fact, according to Kirkman, they test for over 950 environmental contaminants.
Kirkman staff included: Michael Schaeffer as CEO, Jim Hall as VP and CFO, and Rhonda Mulford as VP of International Sales and HR.