CENTRAL POINT, Ore., July 10, 2019 (GLOBE NEWSWIRE) — – via NetworkWire – Hemptown Organics Corp. (“Hemptown” or the Company) today announced the Company has acquired all or substantially all of the assets comprising the FDA licensed, cGMP (Current Good Manufacturing Practice) certified operating nutraceutical business of the Kirkman Group (“Kirkman”) based in Lake Oswego, Oregon. The transaction includes all of the management team, production equipment, formulations, proprietary intellectual property, current sales channels, and fulfillment centers.
Among the Acquisition Deal Highlights:
- Fully operational FDA licensed, cGMP 25,000 sq. ft. nutraceutical manufacturing facility, with over 1,200 SOPs.
- Kirkman has been in FDA good standing and operation, supplying world class formulations for children with autism and special needs, for 70 years.
- Kirkman has $6M in existing annual revenue and is growing.
- Former owner and Chairman David Humphreys, a board member on the American Academy of Cannabinoid Medicine (AACM), will remain with Hemptown in a role to be determined by the parties, guiding Hemptown’s direction within the community of doctors who focus on cannabinoid medicine.
- The Kirkman facility is comprised of state-of-the-art formulations and equipment to facilitate precision dosage CBD & CBG liquid fill tinctures, creams and topicals, gel caps, and gums/edibles.
- With the existing management team and formulation experts still employed, Hemptown will make a seamless transition to fast-track CBD/CBG product formulations into Consumer Packaged Goods for wholesale and retail markets.
Hemptown USA is a rapidly growing vertically integrated multi-state operator within the thriving cannabinoid industry. The acquisition of the Kirkman Group business completes Hemptown’s vertical integration plans with immediate entry into the Consumer Packaged Goods space. Hemptown recognizes the nutraceutical industry standards for producing finished goods will soon be a requirement for all products being sold in the marketplace to consumers either thru retailers or internet sales.
Hemptown is presently positioning itself to be one of the largest producers of CBG in North America. CBG is the precursor to all cannabinoids and is commonly known as “The Mother of All Cannabinoids.” Hemptown is growing over 500 acres focused exclusively on these rare genetics in an effort to become a dominate North American supplier of CBG by the end of 2019.
Hemptown USA will immediately leverage Kirkman’s Ultra Tested® protocols for testing every raw ingredient used in all its products. Ingredients are tested for more than 950 environmental contaminants while finished products will be tested for 24 heavy metals, bacteria, yeast, mold and common allergens. Ultra Tested® is the highest standard of purity testing in the nutritional supplement industry, and no other supplement company in the world offers this degree of purity testing. Hemptown will be one of the first companies to offer product liability insurance on all future Consumer Packaged Goods produced at the facility.
The Kirkman Group is a well-managed company that includes a team of world class formulation experts that will help Hemptown USA develop CBD/CBG infused products for consumers en masse. Hemptown is prepared for any FDA requirements or forthcoming policy decision by the federal government with respect to productions standards of finished goods and products.
For over 70 years Kirkman has been recognized as a leader in the development and manufacturing of “pure” nutraceuticals and nutritional supplements for individuals with autism and special needs.
David Humphrey, the former President and CEO of the Kirkman Group, Inc., is a member of the national boards of various non-profit organizations including The American Academy of Cannabinoid Medicine (AACM), a leading clinical medicine and scientific association, whose mission is to foster high standards in the practice of cannabinoid medicine. The AACM sets the gold standard for the research and practice of cannabinoid medicine, sponsors and co-sponsors conferences and meetings relevant to cannabinoid medicine, and provides board certification for qualified practitioners. The addition of Mr. Humphrey to Hemptown’s team bolsters the Company’s presence in the world of cannabinoid doctors researching, developing and testing formulations for consumers with imbalances in their cannabinoid systems.
“The Kirkman Group is a key strategic acquisition for Hemptown. Being fully operational and FDA licensed accelerates Hemptown’s vertical integrations plans. Kirkman’s high quality formulations and production standards will give Hemptown the best in-class products filling retail shelves,” said Rod Wolterman, Chairman and Founder of Hemptown USA.
David Humphrey added “The team at Kirkman® is delighted to now be part of the Hemptown USA group. This move will allow Kirkman, the leading manufacturer of nutritional supplements for a growing community of individuals with special needs, to serve an even wider community of families and individuals looking for high quality, contaminant-free products. Now, coupled with Hemptown’s deep expertise in farming and extracting novel cannabinoids, the company will be able to add to Kirkman’s product offerings and provide even more value to our community of customers.”
Humphrey concluded, “This year Kirkman Group is celebrating its 70th year in business and I couldn’t think of a better team to lead the company into the future than the folks at Hemptown USA.”
About Hemptown USA
Hemptown USA is growing some of the finest high cannabinoid hemp plants in the world. Following an impressive first year yield, Hemptown USA is scaling up its operation to meet the ever-increasing global demand for cannabinoid products. With the expanded farmland spanning three states and in-house extraction and processing facilities Hemptown USA is now positioned to vertically integrate into the Consumer Packaged Goods sectors with top quality-branded product lines for the consumer market, Hemptown USA’s vertically integrated business model is well-positioned to capitalize on a global market expected to exceed $22 billion by 2020. For more information visit: www.hemptownusa.com.
Kirkman® is the leading manufacturer of nutritional supplements for individuals with autism and special needs. Founded in 1949, Kirkman® is the oldest nutritional supplement company serving the special needs community. This experience has allowed Kirkman® to pioneer development of effective products in many areas of nutritional supplementation for individuals with special health needs. To learn more about Kirkman®, visit the company’s website at www.kirkmangroup.com.
Disclaimer for Forward-Looking Statements
This news release contains forward-looking statements that involve various risks and uncertainties regarding future events. Such forward-looking statements are based on current expectations of management, involve a number of risks and uncertainties, and are not guarantees of future performance of the Company. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the nutraceutical business and its prospects for the future, the entry into the Consumer Packages Goods business by the Company and the Company’s goal to become a dominant supplier of CBG. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such 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 control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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