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HTC Extraction (TSXV: HTC) buys Californian cannabinoid manufacturer for $1.2 million

Cannabis
17 February 2020 12:19 (EDT)

LNG gas manufacturer, HTC Extraction ( HTC), has completed its purchase of American cannabinoid manufacturer Kase Farma Inc.

In a share and purchase agreement with Startling Brands Inc., the company acquired all the shares of Kase Farma, which is now a wholly owned subsidiary of HTC Extractions. 

The purchase consisted of a C$1,200,000 cash buy-out as well as large issuance of shares and warrants by HTC Extractions.  

Mike Reynolds, Starling Brands’ CEO stated he’s excited to work alongside HTC.

Kase Farma is authorised in California, U.S. and cultivates and extracts various hemp and CBD products.

The farm has an “Identity Preserved Initiative” which allows consumers to track where exactly the products have originated from.  

Kase Farma is currently upgrading its California plant. It hopes to bring production up to 435,000 grams each day. Running at this capacity, the gross revenue potential would be C$1.85 million a day.

Kase Farma’s is valuable to HTC for two reasons.

Firstly, as a producer of cannabinoids and secondly as a source of plant-based biomass for HTC Extractions’ renewable natural gas projects.

HTC Extraction (HTC) was steady, with shares currently trading at C$0.20

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