Hemp Technology Inc. is striving to become a leading vertically integrated producer, manufacturer, and distributor of high value hemp-derived phytocannabinoids. Our business model is to establish the Company as a B2B, bulk and wholesale supplier of hemp-derived CBD isolate. We plan to specialize in creating maximum value through processes to create nano-emulsions, and water-soluble CBD to serve the rapidly growing global hemp market.
The passage of the Agricultural Improvement Act of 2018 or Farm Bill, which became effective on January 1, 2019, removed hemp and all of its derivates from the Controlled Substances Act in the U.S. This legislation paved the way for scaled and efficient business models to leverage the demand for hemp products, hemp-derived CBD and hemp consumer packaged goods. The 2018 Farm Bill, the U.S. Drug Enforcement Agency (DEA), and Industrial Hemp Act 2017 have set legislative guidelines that have allowed low (not more than 0.3%) THC content in hemp cultivation, processing, marketing, distribution, and consumption. These recent developments have solidified the path forward for HempTech.
Our plan is to build a vertically integrated hemp extraction business based around our proposed processing facility. HempTech is in the process of site criteria evaluation for a potential processing facility in Kentucky, U.S.A. We plan to select lab and extraction processing facilities in the State of Kentucky and commence the build-out of a state-of-the-art hemp extraction facility. The highly automated facility is planned to alleviate the processing bottleneck facing the hemp industry. The Company plans to source hemp crops to feed this potential production line and identify buyers for the products it may produce.
Our planned product line includes; whole plant hemp, CBD isolate powder, high CBD hemp seeds, CBD distillate oil, and hemp-derived full spectrum CBD oil. CBD represents one of many possible revenue streams that may be sourced and isolated from hemp. Management believes that the hemp industry is witnessing growth on a worldwide scale due to increasing awareness pertaining to a multitude of uses and benefits associated with hemp products.
Based on obtaining funding, management plans that the Company’s distribution and exportation of hemp-derived CBD will begin in early 2021, at this time, the revenue from the sale of its products will be realized.
On January 24, 2019, both of our Kentucky subsidiaries, Hemp Technology, Inc. and Hemp Biotech, Inc., entered into Processor/Handler Licensing Agreements with the Kentucky Department of Agriculture, Industrial Hemp Research Pilot Program. These licenses will allow HempTech to process, store and handle hemp and hemp products below 0.3% THC. Kentucky is a favorable jurisdiction without a need for a difficult and lengthy state or local licensing process, this will allow us to potentially have the facility fully operational in 2020.