DALLAS--(BUSINESS WIRE)--Generation Hemp, Inc. (OTCPK: GENH), a Dallas-based Hemp company, announced today that it has entered into Definitive Agreements with Halcyon Thruput, LLC (“the Company”) to acquire 100% of the company’s assets. Halcyon Thruput is a leading emerging company active in the Hemp sector that provides post-harvest and midstream services to growers by drying and processing harvested hemp directly from the field and wet-baled at the Company’s 48,000 square foot facility located in Hopkinsville, Kentucky. The drying services technology greatly increases efficiency and capacity during harvest for farmers who need to quickly move harvested hemp while preserving the cannabinoid potency by providing scalable infrastructure essential to receive and process hemp with high moisture content (“wet”) quickly. Additionally, the Company offers safe storage services for processed hemp, which enables farmers to maximize strategic market timing. The Company’s midstream business is fee income, based upon a price per pound of material handled, and therefore is more protected from significant commodity price variations. The facility is able to process approximately 10,000 wet pounds per hour and in development are plans to scale up to 20,000 wet pounds per hour in order to meet market demands as licensed and harvested hemp acreage continues to dramatically increase across Kentucky and Tennessee. The Company’s current revenue projections for calendar year 2020 are approximately $10 Million.
- Generation Hemp, Inc., executes Definitive Agreements to acquire 100 percent of the ownership interest in Halcyon Thruput, LLC.
- The purchase price of the transaction is approximately $5.1 million, payable in $2.5 million of restricted common stock (valued at $0.50 per share) of Generation Hemp, Inc., restricted from trading for one year and $2.6 million in cash.
- As a condition of the agreement to acquire the Company, Jack Sibley and Watt Stephens, co-founders of Halcyon Thruput, will remain as officers and employees of the Company under binding employment agreements for a minimum term of three years and will also become officers of the parent company, Generation Hemp.
- Additional potential future consideration is payable to OZC Agriculture Ky, LP, the parent company of Halcyon, in years 2021, 2022, and 2023, based upon certain financial performance measures of Halcyon in future years.
Gary C. Evans, Chairman and CEO of Generation Hemp, Inc., said, “I am very pleased to announce completion of the definitive agreements to acquire Halcyon Thruput. This Company is one of the largest hemp processing facilities in the Southeast, centrally located in the heart of Southwest Kentucky “Hemp Country.” It is a leader in the midstream sector that provides scalable drying services to ensure that their client’s plant material is handled and processed in a manner designed to maximize quality, minimize degradation, and improve the price received on behalf of the farmer. In addition, the company’s state-of-the-art cleaning and stripping technology that removes stalks and stems, produces a consistent, homogenized biomass that allows Halcyon to return their customers’ Hemp in a highly marketable, expedient time.”
Evans continued, “Since early December, we have been extremely active in the sector, after completing over ten months of rigorous due diligence on a number of companies across the U.S. This has included site visits, in-person meetings with companies’ management teams, verifying operations and industry reputations, along with deep dives into company financial statements. On December 2, 2019, we completed the merger of Home Treasure Finders and Energy Hunter Resources, Inc. Two days later, the Home Treasure Finder’s name and ticker symbol was changed to Generation Hemp, Inc. (OTCPK: GENH). Now, just a couple of months later, we have announced execution of definitive agreements with Halcyon Thruput. Our goal, as noted in previous announcements, is to become a leading seed-to-sale pure-play Hemp company. In the coming months, we hope to have additional announcements moving us closer to our seed-to-sale goal, as well as an anticipated uplisting to NASDAQ this year.”
Jack Sibley, Chairman and Co-CEO of Halcyon Thruput, said, “Today’s announcement marks a very important step forward for the future of our company. Generation Hemp will greatly enhance Halcyon’s mission to provide much needed infrastructure to the hemp supply chain. By creating processing and supply hubs across the U.S., Generation Hemp will further secure the ability for farmers to get their product to market faster and more reliably by providing buyers a consistent, homogenized product with full chain of custody. We look forward to finalizing this transaction with Generation Hemp and working with Gary C. Evans and his management team to build a truly premier company within this new business sector.”
Closing of this transaction is based on the fulfillment of certain terms and conditions included in the Definitive Agreements, which are anticipated to be completed within the next 30-45 days.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, ”projects”, “forecasts”, “proposes”, “should”, “likely” or similar expressions, indicates a forward-looking statement. These statements and all the projections in this press release are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. The identification in this press release of factors that may affect the company’s future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive.