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World Hemp Group Inc. (GHG) (CSE.GHG, OTCQB: GBHPF, Forum) is a hemp-based firm dedicated to sustainability and social accountability in a theme of “international environmental stewardship” because it pursues alternatives inside these sectors.
This theme drives the corporate’s HAIZ idea in an effort to safe a stable platform of services which might be environmentally-friendly, whereas producing constant ROI for all stakeholders.
on this unique video Q&A podcast, Stockhouse Media’s Dave Jackson was joined by firm President, CEO, and Chairman of the Board Curt Huber to get buyers and shareholders up-to-date on what’s been taking place and what’s on the drafting board at World Hemp Group.
SH: To start out off with, Curt, are you able to inform us a bit of bit about your self and the historical past of the corporate?
CH: I’ve been concerned within the public firm world for most likely the final 25 years. I have been related to loads of completely different corporations in numerous industries, principally as a director or senior officer. I joined World Hemp simply after its inception in 2014. A mutual good friend of the founder launched me. I actually favored the idea of what the corporate wished to do and its imaginative and prescient. I initially got here on because the CFO and been with the corporate ever since and final yr I grew to become the president of the corporate.
SH: Are you able to replace our investor viewers and your World Hemp shareholders on any new firm developments, particularly within the wake of COVID-19?
CH: As we wound down our operations in Oregon, we have been centered on cultivation of hemp for CBD extraction at our farm in Scio, Oregon. Again in September of final yr, we had the chance to vary our focus and return to our roots and so COVID was fairly difficult for us within the business, particularly regarding cultivation of hemp and all the problems that include COVID. That was a really difficult yr for us final yr, however we’ve since introduced that we wound down these operations, we have offered the farm in Oregon and we’re continuing ahead with our new imaginative and prescient, which is actually our outdated imaginative and prescient. At this level, COVID doesn’t affect us just because we at the moment are simply placing the belongings collectively for the event of what we name our Colorado Hemp Agro-Industrial Zone or as, as you talked about, “HAIZ”.
SH: There are lot of hemp corporations on the market on this house. What makes your organization and your online business mannequin completely different from the remaining?
CH: We now have all the time believed within the industrial functions of hemp and that’s what we’re pursuing now, however it’s a a lot broader imaginative and prescient than that. We actually need to construct a sustainable metropolis utilizing eco-friendly applied sciences, hemp-based constructing supplies and, when you look in Europe, they’ve loads of hemp-based constructing building occurring proper now. North America actually would not. You’ve the odd place the place someone will get enthusiastic about using hemp and the advantages that include it they usually construct a home. Then another metropolis throughout the nation builds one other one. What we’re doing is, we’ve a imaginative and prescient to really construct out a complete group and apply a variety of applied sciences that can make this entire challenge sustainable. We are literally going to develop our personal constructing supplies proper within the yard.
SH: You’ve only in the near past secured key residential improvement land to your preliminary phases at your Colorado Hemp Agro-Industrial Zone. Are you able to broaden on this initiative for our investor viewers?
CH: Truly, within the final two weeks, we’ve truly acquired two properties: one for the residential element, and one is an industrial element the place we are going to even have the manufacturing facility. The economic land is 44 acres in measurement. It is going to have the entire manufacturing. It is going to even have house there that enables us to broaden our collaboration, so we will convey different corporations in which might be like-minded and have attention-grabbing applied sciences that will praise what we’re doing within the challenge. There may be numerous room to broaden there. As well as, our imaginative and prescient is to have a small demonstration farm there, a customer heart, and a few demonstration or mannequin properties on that website as properly. That would be the starting of the entire challenge. Now, the 175 acres that we introduced, we’re within the means of closing that transaction as properly and we are going to construct our group there. There’s an present group there of near 100 homes.
We shall be increasing on that. This specific acreage is already annexed into town. Lots of the approval course of has occurred already. Now we have to simply return in and refresh loads of issues that have been already achieved. Each of those are very key strategic items and one of many issues that we glance to do then is proceed to broaden the acreage place, which shall be used extra for the agricultural points. This entire space is thought for hay and alfalfa manufacturing. What we wish to do is improve the manufacturing of hemp right here, which is clearly a a lot larger value-added crop, particularly whenever you course of it into one thing like constructing supplies. As well as, what we can do is broaden using the fiber, which is a by-product of the decortication course of. That shall be key as we proceed to broaden the entire operation on the HAIZ.
SH: You’ve not too long ago introduced a transaction to make the most of strategic water infrastructure belongings with Western Sierra Useful resource Company. This can be information to many buyers. Are you able to unpack the advantages of it?
CH: Definitely, for all of the issues that we wish to do, whether or not or not it’s residential improvement, whether or not or not it’s agriculture, clearly having out there water is a key element. One of many issues that Western Sierra did, over most likely the final 15 years, was they obtained the advantage of the event of water infrastructure and water rights. They acquired these from a person who’s now the president of the corporate and he’s an knowledgeable in not solely the water side of issues, however he is additionally been within the improvement enterprise for the final 40 years. He shall be a key individual within the improvement of our entire residential challenge right here.
SH: The Firm appears set for robust progress in 2021. How are you positioned to broaden operations to satisfy this demand?
CH: What we wish to do is, as I discussed, constructing a few mannequin properties. The attention-grabbing factor about this space of Northwest Colorado, the place we’re in, is it has an enormous pent-up demand for inexpensive housing. We all know that if we construct it, they are going to come. It is a historic downside that has not gone away for most likely at the least 20 years, and it is just getting worse. You’re seeing in some areas, like loads of areas in North America the place the housing costs have elevated tremendously, and it is priced lots of people out of the market. What we need to do is to construct within the inexpensive housing facet. Our urged worth vary at this level is 275 to 475 and the concept is, by constructing two mannequin properties initially, we need to have that carried out this yr after which we’ll be capable of start pre-sales and principally have a complete lineup of homes able to construct, offered. We will generate a good bit of income for the corporate doing that.
SH: For firm shareholders and potential buyers, what sort of future improvement and progress can we count on at your Colorado HAIZ operations?
CH: Our first step was buying the strategic land holdings. With out that there is no such thing as a challenge. We introduced that these can be closing mid-month and now we will proceed ahead. We’re at the moment engaged on main funding, which is a extra secured debt facility, which shall be collateralized with the water infrastructure that you simply talked about. That shall be one of many subsequent steps. We’re additionally wanting on the numerous hemp applied sciences that we wish to make use of on the challenge, and we’ve a chance to usher in a few of these into the challenge as properly. These are the following two steps that we’re engaged on right here that you’re going to see extra details about.
SH: I’ve to say your inventory has had a little bit of a curler coaster trip over the previous yr. What are you able to inform our investor viewers concerning the present valuation of your inventory and why you suppose it’s a very good purchase proper now?
CH: In case you have a look at the inventory traditionally, it has had occasions the place it has been significantly larger and for no actual purpose, I shall be trustworthy there. At one level within the frothiness of the market, we traded as much as numbers that simply weren’t sensible as a result of there was not something within the firm. Now we’re at a degree the place we’ve a stable imaginative and prescient, and we’re executing on it. In case you have a look at kind of the progress that we’ve made since we first introduced the partnership on this, which was again in September, we’ve moved forward tremendously, and that is actually just the start. We’ll undoubtedly see rather more growth of the challenge. At these costs, we’ve been significantly larger previously with not almost as a lot occurring. This actually is an effective alternative to try our inventory and consider whether or not you’re feeling that our imaginative and prescient is right and are available and take part.
SH: What’s the long-term technique for the corporate transferring into 2021 and past, and what retail and institutional buyers needs to be searching for?
CH: The attention-grabbing factor about this specific challenge is the time horizon on it. Consider it or not it truly has a time horizon that is most likely 25 years. We now have the chance to proceed to construct. We now have the water in place to have the ability to construct 3000 homes if we wished to. That is along with the income stream that you simply get from the sale of the residential facet of this system. That is going to build up big actual property belongings, water infrastructure belongings and it’ll finally translate to a number of income streams as a result of you are going to develop hemp, which is then offered to the manufacturing facility. The manufacturing facility sells the completed product to the home constructing division after which the home constructing division sells the properties. You’ve a number of income streams, and you’ve got massive asset accumulation. Our imaginative and prescient is to proceed to build up acreage on this area, convert it to excessive worth agriculture, being hemp. The place you could have unencumbered land, we can develop hemp and alfalfa, which is marginal product. There may be not some huge cash that we made in that however it’s a good various crop for the hemp.
SH: Are you able to inform our viewers a bit of bit about your company administration and board groups, together with the expertise and modern concepts they convey to the hemp agricultural house?
CH: Definitely. Within the final week and a half, we’ve simply added a brand new director – that was Roger Johnson. He occurs to be the president of Western Sierra Useful resource, that you simply talked about earlier. Once more, his background is in actual property improvement. He has been within the improvement business for 40 plus years and has been on this specific area for 20 plus years. He has carried out loads of developments within the space and is the person who put collectively all of the water infrastructure. He is a perfect individual to be on our board. It is someone that I’ve wished to work with since I first met him again in 2015, once we truly walked the property, once we initially wished to do that challenge. Along with him is Paul Perrault – Dr. Perrault has been with the corporate virtually proper from the start, across the similar time I did.
He has been very instrumental in placing collectively a number of the hemp rising facet of issues. A few years in the past, he managed operations in Canada the place we seemed to develop hemp in New Brunswick. He was instrumental in operating that facet of the corporate. He has been only a super assist to me in growing our modeling for the entire Hemp Agro-Industrial Zone right here. He has been fairly instrumental in sourcing and constructing a number of relationships that I believe are going to pay dividends for the corporate as we transfer ahead. We now have loads of hemp experience. We even have, though he isn’t a director, he’s an advisor to the board and he’s a gentleman by the identify of Gabrielle Gauthier, who’s a hemp grasp builder. He spent three years in France studying the craft, is without doubt one of the earliest, possibly even the earliest adopter of hemp building in North America, he has obtained most likely 150 completely different hemp-based building initiatives underneath his belt. He’s primarily based out of Jap Canada and so we’ve nice experience there.
SH: Curt, are you able to inform us a bit of bit about your R&D division?
CH: R&D is a vital element to all the pieces that we do. The issue with the entire hemp business is that there was this 80-year moratorium and what business on the earth at present has not been impacted by new know-how? Oh, hemp! We really feel very strongly that R&D is essential. It will be important in our Hemp Agro-Industrial Zone, and we’ve truly opened a R&D division. It’s headed by a professor, Victor Castaño, he’s primarily based out of Queretaro, Mexico, which is simply north of Mexico Metropolis. He’s hooked up to the biggest college in Mexico, and we’re starting to recruit a really, very vibrant crew down there that’s , amongst different issues, various constructing supplies and using hemp in them. Along with that, we’ve truly accomplished our first collaboration, which is with a Mexican group that’s truly allowed to domesticate hemp and hashish down there proper now, Aramat.
We’re within the means of with the ability to convey some hemp seed into the nation in order that we will develop hemp there they usually can make the most of that contemporary materials within the R&D. One of many different issues that we need to do is to reinforce our collaboration there. We’re speaking with a variety of like-minded teams and there is a chance, probably with one of many states in Mexico. We’re pursuing loads of these items now. I hope to have some information on this entrance, over the following week or two. Lots of issues in Mexico have been kind of sidelined over the past quick little bit, with their election. Now that’s behind them, it’s sort of enterprise as common once more. We really feel very strongly that analysis is the important thing to all the pieces that we’re doing, however we can make the most of that in our challenge in Colorado, most likely marketed extensively with the purpose of making mental property that we will patent and make the most of at our initiatives.
We’re going to proceed to construct out our alternatives on the R&D entrance, and it’ll positively affect all the pieces that we’re doing in Colorado.
SH: And eventually, Curt, if there’s something I’ve neglected please be at liberty to elaborate.
CH: I believe we just about lined it this time round. I actually respect the chance to talk with you on the corporate and look ahead to answering anyone’s questions if they’ve them.
For normal updates, go to www.globalhempgroup.com.
FULL DISCLOSURE: It is a paid article produced by Stockhouse Publishing.