DALLAS--(BUSINESS WIRE)--Dallas-based Hemp companies Generation Hemp, Inc. (OTCPK: GENH) and its affiliate, Halcyon Thruput, LLC (“Halcyon”), announced today the execution of a new Toll Processing Agreement with GenCanna Acquisition Corp. (“GenCanna”), a leading Kentucky-based hemp processor and CBD product manufacturer. The agreement provides ongoing mid-stream hemp services at Halcyon’s 48,000 square foot operating facility located in Hopkinsville, Kentucky. Under the terms of the agreement, Halcyon will dry, process, and store significant amounts of hemp biomass assets for GenCanna that will be used in cannabidiol (CBD) extraction. Process operations from this new contract are expected to commence prior to mid-July. Financial terms of the agreement are not being disclosed.
In conjunction with this new Toll Processing Agreement, Halcyon has upgraded its Kentucky based facility with four new belt dryers. Each dryer is equipped with variable temperature settings that enable an efficient drying process while protecting the plant’s valuable cannabinoid and terpene content. In addition, the upgraded systems are modular and can produce approximately 800 pounds of uniformly dried hemp per hour. These modular systems, which are clean-burning natural gas fired, provide the facility with redundancies to ensure constant operations and also help to prevent any co-mingling of customers’ biomass.
Generation Hemp’s Chairman and Chief Executive Officer, Gary C. Evans, commented, “The execution of this agreement with GenCanna represents an important milestone for Generation Hemp and Halcyon, as we expect the volume of the current hemp biomass supply to be in the range of six million pounds. As a result of the acquisition of six brand new, state of the art dryers, four of which have been installed to date, we will be able to operate our facility at full capacity during a period when farmers are in planting season, not harvest season. Lastly, we are thrilled to be partnering with a premier player like GenCanna in the hemp-derived CBD sector with significant financial strength and biomass product.”
Andrew Barnett, GenCanna’s Chief Executive Officer, added, “We are excited to establish this new business relationship with Generation Hemp and Halcyon Thruput. Their operational know-how and experience in this critical segment of the hemp industry supply chain will help us meet our goals as we prepare our significant quantities of high-quality hemp product for market.”
Watt Stephens, Co-CEO of Halcyon Thruput added, “This relationship enables all parties to fully harness the strengths of each organization and its leadership as the hemp industry continues to emerge. Leveraging complementary skill-sets with high integrity businesses is pivotal to Halcyon’s mission and we certainly believe this partnership will continue to present myriad opportunities that will benefit all parties in both the short and long-term.”
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.
