Two Rivers will acquire CBD extraction assets and this year’s hemp harvest from Monteverde Partners
Image: Two Rivers to acquire assets of Montverde. Photo: Courtesy of NickyPe/Pixabay.
Vaxa Global, a wholly-owned subsidiary of Two Rivers Water & Farming (Two Rivers), has signed an agreement with Montverde Partners (Montverde) to acquire extraction equipment, seeds and clones inventory and the full ownership of this year’s crop.
As per the agreement, Vaxa will take ownership of over $900,000 (£730,228) in extraction and processing equipment purchased by Montverde since 2017.
Montverde will also transfer its full ownership of this year’s hemp crop in Butte Valley farm, which is expected to be harvested in October. Additionally, the full seed and clone inventory of Montverde will be added to Two Rivers’ inventory during the fourth quarter after the harvest takes place.
The agreements are expected to be closed before the end of this month
Vaxa managing director Greg Harrington said: “The acquisition of the Montverde assets further expands Two Rivers’ capacity as a leading hemp industry producer.
“Combined with Vaxa’s expertise, these additions will enable us to produce the high-yield, raw hemp material for our consumer products more efficiently in house and to put our Ekstract Labs plans into action. We expect to continue to build internal capacity as we seek to capitalize on the tremendous opportunity the emerging CBD market presents.”
Financial details related to the transaction were not disclosed. However, Two Rivers stated that the acquisition will be paid for without dilution to its existing shareholders. The agreements are expected to close before 30 September 2019.
Two Rivers said that the deal will be closed through mutual cancellation of liabilities of Montverde to the company under their exclusive distribution and farm lease agreements along with the allocation of a portion of the Two Rivers shares owned by Easby Land & Cattle from Vaxa’s acquisition this July.
Easby will contribute to the purchased equipment to Vaxa at no cost as a follow up on the acquisition. Although the acquisition was previously contemplated, it was not finalised until the closing of the Vaxa transaction when the shares were available to Easby.
Colorado-based agribusiness Two Rivers owns agricultural land and water rights in Southern Colorado, where several strains of hemp are grown using proprietary genetics.
The company sells biomass, processes and extracts phytocannabinoids and is developing a consumer brand based on its Nature’s Whole Spectrum approach.