SANTA CRUZ, CA / ACCESSWIRE / December 29, 2020 / Eco-Growth Strategies (the "Company" or "Eco-Growth Strategies") (OTC PINK:ECGS), a nutraceutical company developing a variety of premium CBD-based products specializing in the sourcing and extraction of trusted North American hemp, today announced that the company has formally closed a joint venture with Sedona Synergy, Inc., an Arizona company that specializes in the extraction of hemp biomass.
As previously mentioned, the venture will focus on the extraction of hemp biomass through the utilization of extraction machines that offer state of the art technology allowing for higher efficiency extraction of CBD, terpenes and other desired cannabinoid content. Sedona Synergy and XtractionOne Plus will also be further refining CBD oils into CBD isolates in a GMP clean room environment. In addition, ECGS will be contributing two (2) high efficiency CO2 extraction machines and additional clean room refinery equipment. Eco-Growth Strategies will also be providing $850,000 in infrastructure modernization and additional refinery equipment costs to the Northern Arizona facility.
Eco-Growth Strategies, Inc. (ECGS), through its wholly owned subsidiary, XtractionOne Plus, will control/own 50.1% of the Joint Venture. ECGS, through an additional $1,200,000 investment, will also increase its control/ownership stake to 60.8%, which is expected by the end of the first quarter. ECGS shall also have the option to purchase the remaining 39.2% of the JV by the end of calendar 2021 for a prorated purchase price of one times revenue.
The Northern Arizona production facility is expected to process roughly 3,000,000 million pounds of hemp biomass annually. This will represent approximately $25,000,000 to $28,000,000 in annual revenue. As part of the projected total of processed bio-mass, the facility is currently processing a one-million-pound contract of hemp biomass with a minimum price of $4.00 per pound, or a total minimum contractual amount of four million dollars ($4,000,000). This contract will also have additional profit-sharing opportunities through the previously mentioned distillate operations.
"We are very excited to have closed this joint venture with Sedona Synergy," said Alan Lien, President of XtractionOne Plus. "This relationship will provide us an immediate multi-million dollar revenue stream that should continue to grow exponentially as we add the latest infrastructure to our extraction processes. With decades of networking between the two companies and industry trends signaling substantial growth of CBD, we fully believe we can capture a sizeable percentage of market share within the overall hemp biomass extraction market," added Lien.
Badre Tijini, CEO of Sedona Synergy, Inc., added, "Executing this joint venture with Eco-Growth Strategies strengthens our overall ability to fully penetrate the hemp biomass sector. We believe we provide an offering that allows farmers optionality coupled with the latest extraction technology, regardless of the harvest yield."
About Eco-Growth Strategies, Inc.
Eco-Growth Strategies, Inc. is a nutraceutical and processing company developing a range of CBD-based products. The company's mission is to employ best practice science to source, manufacture, and package the process all of its CBD products from within the United States. The company performs farm and manufacturing site visits and sources its products from only the highest quality hemp farms in North America.
CBD Disclaimer
The statements made regarding CBD products including our future products have not been evaluated by the Food and Drug Administration. The efficacy of these products and the testimonials made has not been confirmed by FDA- approved research. These products are not intended to diagnose, treat, cure or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from healthcare practitioners. Please consult your healthcare professional about potential interactions or other possible complications before using any product. The Federal Food, Drug, and Cosmetic Act requires this notice.
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CONTACT:
Richard Brown
(775) 443-4740
SOURCE: Eco-Growth Strategies