Escondido, CA — (November 27, 2018) – MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation, and its joint venture partner Global Hemp Group (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG) are pleased to provide an update on the harvest at their high yielding CBD hemp project in Scio, Oregon.
The 2018 Scio cultivation consisted of 33 acres of high yielding CBD hemp (utilizing six different cultivars with an expected CBD content ranging from 6% to 12%), grown in an orchard style cultivation on the property. With the help of near perfect weather in the region that extended the harvest period by several weeks, the hemp crop had the opportunity to grow to full maturity, allowing the team to completely harvest all of the plants before the fall rains began in the valley. For pictures from this season’s cultivation, please visit the Scio project page on MCOA’s corporate website here: http://marijuanacompanyofamerica.com/scio-oregon/
Innovation was the key to overcoming various challenges throughout the year, but the team in Scio was able to find solutions when required. Our team consists of a number of talented crew members trained in a variety of skill sets, including metal fabrication, fine carpentry, and large equipment operation. With the help of a number of knowledgeable advisors, the team set up, built, and operated the project themselves.
This year’s harvest consisted of approximately 37,000 high yielding CBD hemp plants producing 24 tons of biomass. Harvesting this year was done by hand, making it extremely labor intensive and time consuming. However, the team developed a number of solutions that will automate both the harvesting and planting for next year’s crop. Ultimately, the goal is to completely automate these processes, making it more efficient and less costly to complete. The team has now begun working on prototypes to automate the harvesting processes and expect to have machinery ready for use next season.
A number of different drying techniques were employed with this year’s harvest. In the end, “old school” hanging techniques proved to be the most effective and efficient. Drying took place in the farm’s larger 20-foot-high, 4,000 sq. ft. greenhouse which allowed for an increased quantity of plants being dried at any one time. Drying took approximately 36 to 48 hours to achieve the levels required for storage and ultimately extraction. With each successive batch of drying, techniques were improved to increase the volume of biomass being dried in the greenhouse, while decreasing the time that it took to hang and dry it.
The drying process for all of the hemp harvested is now complete, and is stored awaiting further processing. The farm produced 48,000 pounds of dried biomass, which is stockpiled in quarter ton super sacks, stacked three bags high and requiring approximately 4,000 sq. ft. of storage space. Despite the late start in planting this season, the hemp plants still achieved sufficient size to produce the anticipated quantity of biomass. It is expected that in 2019, planting will begin June 1stgiving the hemp an addition 30-45 days of growing time. This will produce much larger plants, resulting in significantly larger quantities of biomass.
The Partners acquired a hammermill to complete the next level of processing, prior to the biomass going for extraction of the cannabinoids. Processing will begin shortly, once electrical work is complete to run the hammermill. This next level of processing will not only prepare the biomass for extraction of cannabinoids, but will also reduce the storage space requirements by more than 50% as the bulk of the plants is reduced in size.
The Partners are currently exploring opportunities to joint venture with others that have expertise in the cannabinoid extraction business, so that an extraction facility can be set up onsite to process this year’s harvest. Biomass is currently selling for between US$3.00 and US$4.00 per pound. By taking the biomass to the next level of processing, further value will be created.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA’s juridiction.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG), is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry in both Canada and the United States. The Company is headquartered in Vancouver, British Columbia, with hemp cultivation operations in New Brunswick and Oregon. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
Forward Looking Statements
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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