NEW YORK, July 18, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE – HempAmericana, Inc. (HMPQ) (“HempAmericana” or the “Company”), an emerging participant in the CBD products market, is excited to update shareholders on current inventory levels on hand for premium-quality CBD products. As of July 15, 2019, the Company holds CBD-based product inventories in excess of $500,000 based on current market pricing for end-market sales of comparable products. This inventory represents production over the past 60 days and includes CBD Extract, Crude CBD Oil, CBD Distillate, and bottled CBD Tincture.
Management believes it will improve margins over time as production smooths out and the volume absorbs fixed operating cost.
“This initial production push will have a direct and tangible impact in terms of return on our investment in materials, plant and equipment,” stated Salvador Rosillo, HempAmericana CEO. “We also look forward to significant revenue growth as we start delivery to wholesale and other customers. Overall, we are plotting a course toward strong margins on steadily rising production levels.”
The Company continues to pursue an active place in the CBD white label market segment, especially for those companies seeking premium full-spectrum distillate CBD oil. According to industry research, as of Q1 2019, there were in excess of 400 CBD brands in the US market. Many are customer-facing operations with no internal means of production, suggesting a growing demand for high-capacity producers such as HempAmericana.
On this point, new research released in June by the Brightfield Group highlights strong and accelerating growth in the domestic CBD market. Specifically, sales of products containing CBD are expected to exceed $5 billion in 2019, which represents a 700% year/year increase relative to 2018 levels. The report also notes that much of the new growth will be driven by product sales through mainstream retail chain stores, which is a significant indicator of wider and more mainstream consumer adoption of CBD products.
“Right now, it’s all-systems-go,” continued Mr. Rosillo. “We anticipate rising margins on a gross basis, accelerating production levels, increasing inventory levels and customer orders.”
About HempAmericana, Inc.
HempAmericana is an emerging participant in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”. See more at www.hempamericana.com.
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review Hemp Americana annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.
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