Hemptown Making CBG and CBD Production Look Easy
December 12th, 2019
Exclusive, News, Top Story
Public cannabis and hemp companies have seen their valuations clobbered in 2019, most losing at least half of their worth. Part of the reason for the negative sentiment has been management teams making lofty promises that they simply couldn’t live up to. That’s why the candor of privately-held Hemptown USA is a breath of fresh air.
In the corporate video, Hemptown doesn’t pull punches. As the industrial hemp experts cultivated the single largest crop of CBG (cannabigerol) in the world, they let everyone know “This ain’t no desk job”; it takes a highly skilled and motivated staff to make it happen.
No pie-in-the-sky promises. Just getting it done. Recently, the company provided shareholders a comprehensive update on progress as it expands its Oregon footprint and advances its operations in Colorado and Kentucky to put a stranglehold on a leadership spot in CBG production.
Pioneers in Feminized Industrial Hemp and CBG
Much like nearly all species, there is essentially an even split between male and female sexes in cannabis. With cannabis and its cousin hemp – which contains no or only trace amounts of the psychoactive cannabinoid THC (tetrahydrocannabinol) – the female is responsible for the flowers that deliver the goodness in the form of cannabinoids like CBD (cannabidiol) and CBG.
Breaking down cannabinoid genesis further, CBG is at the top of the hierarchy, transforming into all other cannabinoids in the growing process. With CBG being the parent to the other cannabinoids that are trumpeted for a wide array of therapeutic benefits, it comes as no surprise that CBG can share many of the qualities.
Hemptown has commissioned and published a whitepaper from a third party on the opportunities with CBG, called “The Mother of All Cannabinoids.”
Hemptown is taking things to the next level, leveraging its longstanding relationship with one of the world’s leading seed producers to grow feminized cannabis sativa plants containing less than 0.3% THC and exceptionally high cannabinoid-content up to 20%.
Beginning in June of this year, Hemptown planted approximately 500 acres of CBG feminized industrial hemp in Oregon, utilizing rare cultivars from Oregon CBD seeds. This compares to just 50 acres in 2018. The harvest of the 500-acre crop has been successfully completed.
Tackling All Challenges
Cultivated feminized hemp is a new industry and when you’re going outside of the box like Hemptown is, all sorts of challenges arise. For starters, there is no commercial or industrial scale equipment available off-the-shelf for planting, harvesting or drying the crop. Hemptown has invested in innovation to create the equipment and infrastructure to overcome these challenges, while maximizing efficiency to lower operating costs in scaling operations.
Thanks to funding support that has raised over C$33 million in 2019, the company purchased custom John Deere combines, over $1 million in tractors and implements, hired over 200 seasonal employees and constructed 10 new grain silos for drying purposes. With the new processes, the company has proven capacity to dry 25,000 and 30,000 dry pounds of the unique hemp daily.
Armed with the new infrastructure and a second harvest under its belt, management also knows it can increase farming acreage in Oregon if it chooses.
Kentucky and Colorado
Harvesting was completed at Hemptown’s 19 contract farms in Kentucky, resulting in nearly 1 million pounds of CBD-rich hemp biomass and flower. According to Hemptown’s processing partner in the state, the quality tests of the harvest suggests the biomass is some of the best hemp grown in the region.
In Colorado, the harvest was completed despite adverse weather conditions, with estimates for more than 700,000 pounds of CBD-rich biomass and flower once dried.
In aggregate, Hemptown planted, harvested and dried in excess of 2 million pounds of CBG and CBD industrial hemp this year across Oregon, Kentucky and Colorado, meeting management’s production target.
As it refines the production process, Hemptown is growing horizontally in its home state and Kentucky. In June, the company acquired Kirkman Group, a 70-year old leader in the development and manufacturing of nutraceuticals and nutritional supplements for people with autism and special needs. At its 25,000 square foot, FDA-license, cGMP and NSF-certified nutraceutical manufacturing facility in Lake Oswego, Oregon, Kirkman makes a variety of products, including hemp-derived CBD products, antioxidant and immune system support products, detox drinks and multi-vitamins.
Under Hemptown’s ownership, the core business of the facility will be formulations and production of cannabinoid-based consumer packaged goods. The transition is underway.
Making it Look Easy
In the aforementioned corporate video, the narrator opines “This shit ain’t easy” (again the bluntness is fantastic), but with all that Hemptown is accomplishing in a relatively short period of time, it is arguable that they certainly make it look like it is.
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