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Hemptown Signs LOI to Acquire Hemp Smokable Group and Announces Equity Private Placement Financing – Cannabis Hemp Blog


Hemptown Organics Corp (“Hemptown” or the “Company”), is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Hempacco Company Inc. (“Hempacco”) and Pacifica Premiums Inc. ( “Pacifica primes”). The letter of intent provides that Hemptown will acquire all of the outstanding shares of Hempacco and Pacifica Premiums, in order to further diversify the company’s product offering and expand its distribution and sales channels. This acquisition aligns with Hemptown’s vertical integration strategy, whereby Hemptown’s agricultural operations will supply 100% of the hemp required by Hempacco and Pacifica for their own private label brands and services, including hemp smoking products Hemptown brand.

Hempacco is a Southern California-based manufacturing company that produces innovative smokable products made from strained hemp. Its products look like a traditional cigarette but contain only industrial hemp, rich in CBD and CBG, and less than 0.3% THC. There is no nicotine or tobacco in Hempacco products. Hemp-based smoking products are a rapidly growing segment of the consumer packaged cannabinoid market, positioned to capitalize on the established tobacco market, with a current addressable market of over $849 billion worldwide. world and over $100 billion in the United States alone.[1] Hempacco owns The Real Stuff™ Hemp Cigarettes CBD/CBG Smokables, offers hemp smoking products as a private label supplier, and has its own CBD/CBG consumer packaged goods vending machines to distribute products across the United States. United. Hempacco was recently featured in a special Hemp in America that will air on Netflix later this year.

The letter of intent also contemplates that Hemptown invest in Hempacco’s smoking hemp operations in Mexico (“UST Mexico”). With operations, distribution and revenues established in the tobacco industry in Mexico and internationally, UST Mexcio is strategically positioned to take advantage of impending legislation in Mexico legalizing industrial hemp and tobacco-based smoking products. hemp. With over 125 million people, Mexico is a blue sky opportunity for the sale of cannabinoid-based consumer packaged goods. Through its distribution partners, UST Mexico currently sells its products in over 10,000 locations across Mexico. Additionally, Mexican tobacco represents a total addressable market of over US$4 billion.[2]positioning Hemptown to capitalize on a large and growing market with hemp-based smoking products.

Pacifica Premiums, which recently formed a partnership with Hempacco, is a lifestyle brand that draws on a trendy California coastal beach vibe. The team behind Pacifica combines Californian recreational cannabis experience with veterans of the consumer packaged goods industry. The team has had success in beverages, e-cigarettes, cannabis, and hemp. They have long-term relationships with Walmart, 7-Eleven, Circle K and Costco around the world. Unlike most smokable hemp products currently on the market, Pacifica Premiums will only offer very high quality hemp for a much more enjoyable experience. As the tagline says, “It’s Pacifica Time Somewhere”

“We are delighted to have the opportunity to acquire this unique group of innovative companies representing a rapidly growing sector of the global hemp and cannabinoid industry. Smokable products made from industrial hemp present a huge opportunity both as a smoking cessation product and for recreational use. We believe that with their established and revenue-generating operations in the United States and Mexico, Hempacco can be accretive to Hemptown’s overall bottom line while presenting attractive blue skies for growth. These acquisitions align with Hemptown’s overall M&A growth strategy to expand our brand portfolio, broaden our channel diversification while expanding our geographic reach and growing our revenues across both B2B and B2C segments,” said said Eric Gripentrog, CEO of Hemptown.

“We are delighted to have the opportunity to join Hemptown, ensuring a consistent, quality supply of raw hemp for our brands. Hemp smoking products offer an alternative to tobacco, a market worth nearly $814 billion a year. Together with Hemptown, we will continue to strive to be the premier manufacturer of hemp smoking products in North America and around the world. said Sandro Piancone, President of Hempacco.

Private placement financing

The Company is also pleased to announce the non-brokered offering (the “Offer”) of units of the Company (the “Units”) at a price of US$1.75 per Unit.

Each Unit will consist of one common share (a “Unit Share”) and one common share purchase warrant (a “Warrant”) of the Company. Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) at an exercise price of C$4.00 per Warrant Share for a period of 36 months from from the closing date, subject to adjustments in certain cases.

For more information on the offer, click here or contact John Martin at 1-(833)-436-7896 or jmartin@hemptownusa.com.

About Hemptown Organics Corp.

Hemptown is a diverse, industry-leading cannabinoid company that provides a diverse product offering across the value chain, across multiple sales channels, to meet the growing global demand for cannabinoid products. A cutting-edge culture in Oregon’s Rogue Valley, FDA-licensed and cGMP-certified product manufacturing, and a strong management team with Fortune 500 experience, including Kellogg’s, Nike and Intel, are the pillars of the business model. Hemptown’s growth as the company pushes towards the consumer-packaged goods sectors with premium white label and branded product lines for the consumer market. For more information, visit www.hemptownusa.com.

Hemptown Investor Relations
John Martin
jmartin@hemptownusa.com
1-833-436-7896

Hemptown Sales and General Inquiries
info@hemptownusa.com
1-888-CBG-NOW1 (1-888-224-6691)

Disclaimer for forward-looking statements

This press release contains forward-looking statements that involve various risks and uncertainties regarding future events. These forward-looking statements are based on management’s current expectations, involve a number of risks and uncertainties, and are not guarantees of future performance. These statements can generally be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”. , “expects”, “believes”, or “continues”, or their negative or similar variants. Forward-looking statements in this press release include statements regarding the proposed acquisition of Hempacco and Pacifica Premiums, and the proposed offer. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results to differ. and future events will differ materially from those expressed or implied by such statements. forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include general market conditions, significant business, competitive, political and social risks and other factors beyond the Company’s control. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

As Hemptown is not a reporting issuer in any jurisdiction in Canada, all securities issued under the proposed offering will be subject to an indefinite hold period under applicable securities laws. In addition, none of these securities will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none may be offered or sold in the United States in lack of registration or applicable exemption from the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy, and there will be no sale of the securities, in any state where such offer, solicitation or sale would be unlawful.

[1] Grandview Search

[2] satisfied

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