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SAN DIEGO, Dec. 08, 2021 (GLOBE NEWSWIRE) -- via InvestorWire -- Green Hygienics Holdings Inc. (OTCQB: GRYN) (“Green Hygienics” or the “Company”) is pleased to provide an update on the 2021 harvest and current business development activities. Over the last quarter Green Hygienics has been focused on advancing several main areas of business development:
The Company has an aggressive growth strategy. To date, the corporation has financed its operations almost entirely through direct investment from management, and further shares have been issued instead of cash to ensure management is vested. As a result, unlike most companies in the sector, the Company has very few shares outstanding, less than 45M fully diluted.
In keeping with this commitment, on September 22, 2021, Green Hygienics announced it was pursuing a Green Bond Offering of $100M to fund acquisitions. Since then, the Company has:
completed a full upgrade and rebranding of the website and social media accounts
engaged Dechert law firm in Luxembourg, passing a rigorous KYC standard to guide the Company in creating a full, detailed bond offering document and assistance in completing the application to the Luxembourg Stock Exchange
secured the Company’s Legal Entity Identifier (“LEI”) 98450068C6A0BFEFCC12
completed a Trust Deed Agreement through the law office of David J. Hollander
completed a comprehensive SingerLewak Report valuing the Company at $195M to support the offering
completed the publication of its first annual Environmental, Social and Governance Report (“ESG Report”) using the Sustainability Accounting Standards Board (SASB) framework to support the offering
appointed Avenir Registrars who will act as a paying agent. They are registrars for securities, and it is in this context that the Company can seek admission of such securities to Euroclear Bank. They will also be applying for an ("ISIN") security number.
An international distribution network is also in place, book-building has commenced, and the Company is in discussions with several placement agents. The Bond Offering has been very well received as both the interest rate of 7.25% is extraordinary within the bond market, and the existing real estate along with any potential acquisitions are being collateralized.
Additionally, the Company is looking to refinance the Sol Valley Ranch property and consolidate the first and second mortgage into one loan at a lower interest rate to reduce the cost of capital and provide additional working capital. The property received a valuation of $28M early this year and the total amount of the current loans is less than $7.2M.
It is an opportune time to pursue strategic acquisitions at a discount to market. The Company is targeting acquisitions that are already cash flowing and have one or more established brands that are aligned, and that the Company can add supply chain or other value to.
Pursuing acquisitions that provide the potential to support sales and distribution of both the Company’s wholesale and retail products is of paramount importance to accelerate corporate growth.
Further, the Company will look to leverage its primary attribute which is the ability to effectively cultivate USDA Certified Organic hemp on a scaled basis. The demand for organic products is growing and Green Hygienics stands to benefit from that.
Harvesting the 2021 Crop
In the last 24 months the Company has demonstrated its ability to cultivate premium quality hemp both cost effectively and with the extraordinary potential to scale. This year’s harvest was double that of last year and will continue to grow as the demand continues to grow and the Company secures sales and distribution channels. The market is improving slowly with far fewer farmers returning this year and therefore less product saturating the market. Overall demand for hemp-derived cannabinoids and manufactured goods continues to grow. There is more than enough product in current inventory to be sold to cover the Company’s burn rate and begin creating profits in the coming year.
The preliminary estimate of this year’s crop is between 30,000 and 40,000 pounds of flower and a great deal more seconds and biomass, well over last year’s production. The harvest is still drying and will be processed according to demand requirements. The improved performance can be attributed to more acreage planted and upgrades to the electrical and automated irrigation system installed, as well as the experience gained year over year. The cultivation team performed efficiently and will do even better next year.
Green Hygienics has engaged a new external accounting firm from San Diego, AWICPA. The new firm will manage payroll, develop policies, procedures and internal controls to manage inventory and manage accounts payable as well as adjust records to reflect Generally Accepted Accounting Principles (GAAP).
In addition to the potential for revenue growth a material financing or acquisition may provide, the Company plans to launch four e-commerce websites in the first two quarters of 2022 to generate critical cash flow. The cost benefit is compelling in that the price increment between wholesale products and branded manufactured goods is considerable. The e-commerce sites the Company intends to drive forward are:
SolValleyRanch.com – Modeled after microbreweries and boutique hotels; unique with a sense of belonging to something exclusive, without being pretentious. Formulations and the ingredients will be inspired by Sol Valley Ranch’s vast, wild and picturesque property, with certified USDA organic sun-grown hemp at the forefront. The target market will be health-conscious women in their 30s to 60s.
CBDSmokes.com - An existing website currently selling our American Hemp and Diablo hemp smokes will expand to include three other hemp and CBD cigarette brands currently in development. The site will appeal to consumers looking for a healthy alternative to tobacco.
CBDDoctorDirect.com – A more prescriptive and formal brand that will be directed towards both traditional and functional medicine doctors, as well as complementary health practitioners. The products will be USDA organic, from FDA-approved facilities and will be relied upon as an exemplary source of high-quality CBD that all practitioners can be confident prescribing to their patients.
Over the last three months the Company has been advancing potential opportunities in the beverage market and examining the possibility of diversification into the food grade hemp seed protein sector. The team has been working with a notable food supplier for the development of a premium grade hemp flour for creating novel food products.
In general, the Company will continue to explore new opportunities within the sector and shift its main focus on to sales and revenue generation in the coming months.
About Green Hygienics Holdings Inc.
"Hygienics" is the science of preserving and promoting the health of individuals, communities, and the planet; it’s our core mission and at the heart of every decision we make as a company. As more and more consumers prioritize their health and demand transparency and integrity from the companies that create their products, Green Hygienics will be recognized as the most reliable, safe and secure choice in the market for CBD and hemp products. To deliver on this promise, we maintain a constant commitment to sustainable farming practices, cutting-edge science and industry-leading certifiability.
Generating peak value from a plant of this caliber requires prioritizing innovative processing methods and impeccable attention to detail. Creating a secure supply chain and reliable long-term source for high-grade CBD is a corporate strategy for Green Hygienics, coupled with a mission to preserve and protect a valuable natural resource.
As Green Hygienics evolves and expands, its path is clear and uncompromised, creating pure, non-psychoactive, nutraceutical, pharmaceutical, topical and industrial products from the highly sustainable hemp plant to benefit people and preserve the planet.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements. In evaluating these forward-looking statements, you should consider various factors, including our ability to change the direction of the Company, our ability to keep pace with new technology and changing market needs, and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement.