Pure Global Cannabis Inc. (OTC: PRCNF) became the second company Tuesday to announce a CBD deal with an East Asian country, following on the heels of an earlier announcement from New Age Beverages Corp (NASDAQ: NBEV).
The Canadian LP announced that it has secured an agreement through its wholly owned subsidiary PureSinse Inc. with KMT-Hansa Corp., a Chinese hemp production company registered in Anguilla.
“We are extremely excited to be the first Canadian LP to partner with a Chinese group seeking to develop a project of this scale in China. This strategic relationship gives us access to KMT’s resources and connections in China. They truly share our goal of providing high-quality products that are sustainable to the environment and developed using cutting-edge agricultural methods,” Pure Global President and CEO Malay Panchal said in a statement.
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Per the agreement, KMT-Hansa will grow, extract, process and export CBD products at a 17,000-acre facility located in China’s Yunnan province.
KMT-Hansa was granted a Hemp International Industry Park Special Economic Zone License by Yuanjiang County in Yuxi City, Yunnan Province. The license allows the Anguillian company to grow, cultivate, extract and produce industrial hemp products for export. The licensing process is expected to be completed within the next two months while operations are being set up.
Pure Global said it will manage and develop the project by overseeing operations, developing GMP standard and managing the sale and distribution of the CBD products.
The Canadian company will also invest its technology and genetic know-how in the project.
The two companies expect to move their finalized CBD products throughout Asia and 50 other international legal markets.
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