BETHESDA, Md.–(BUSINESS WIRE)–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.
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
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.