VANCOUVER, British Columbia, April 25, 2019 (GLOBE NEWSWIRE) -- BOUGAINVILLE VENTURES INC. ("Bougainville" or the "Company") (CSE:BOG; FRA: 8BV) is pleased to report the Company has positioned itself to capitalize on the growing Cannabidoil (“CBD”) market in Canada's hemp industry by announcing that it has entered into a binding letter of intent ("LOI") to create a joint venture with Project 470 Acres Ltd. ("Project 470") to construct a 5,500 sq. ft. Hemp/CBD processing facility expandable to 10,000 sq. ft. with an option on additional lands for additional expansions as required. This purpose built facility is to be completed and scheduled for occupancy by the end of October 2019 for large scale CBD extraction.
Bougainville has also secured the first right of refusal for an adjacent 320 Acres and any additional locations and/or partner farmers garnered by Project 470 management to grow hemp, terms of which are to be determined in the Definitive Joint Venture Agreement. Each of the parties will receive a one-half share of the joint venture in exchange for their contributions:
Bougainville will contribute funding in the amount of $1 million CAD which will be used to acquire extraction equipment, build out infrastructure and fund working capital.
Project 470 has decades of experience working with co-op farmers in the Province of Saskatchewan, and will contribute operational expertise, will source additional properties, partner farmers, extraction equipment, staffing, manage operations; and, dedicate two quarter sections of land (320 acres) dedicated to hemp production. Subject to Board approval and completion of satisfactory due diligence, Bougainville intends to enter into a definitive agreement by May 31, 2019.
The completion of the Definitive Agreement is limited to the following;
the negotiation and execution of a definitive agreement, completion of satisfactory due diligence by Bougainville and Project 470; andreceipt of all required regulatory,
corporate, Health Canada, permits, Canadian Securities Exchange requirements and any other conditions necessary to complete the transaction.
The Aberdeen Hemp Processing Facility
Aberdeen is located just north of Saskatoon, Saskatchewan, in the heart of the Canada’s second largest hemp producing province and has centralized access to both the Alberta and Manitoba hemp farm markets which will provide for reduced shipping costs enabling a cost effective process resulting in lower production costs. Expansion plans will include eventual cannabis extraction facilities upon receipt of Health Canada licensing.
Project 470’s management has commenced the process of obtaining relevant permits for its Aberdeen facility relating to the installation of drying equipment capable of drying over 1000 acres of flowers and leaves from surrounding farmers.The 5,500 square foot state-of-the-art facility will be unveiled during a ribbon cutting ceremony and grand opening event slated for October 15, 2019. The Aberdeen based hemp processor’s goal is to become a leader in the production of CBD and related consumer products.
The Hemp Industry
The flowers and leaves of the hemp plant are rich in cannabinoids, notably containing non-psychoactive compounds of Cannabidiol. CBD, which has gained increasing popularity in recent years, has been found to be effective component in a complete personal wellness regimen. This has produced an increased demand from consumers for consumable products containing CBD. The Hemp Business Journal estimates that the CBD consumable markets will grow to a $2.1 billion market in consumer sales by 2020.
Andy Jagpal, President Comments;
“As the hemp industry continues to grow, Bougainville is committed to setting the standard in high-quality, traceable CBD extract to capitalize on this rapidly growing, high margin market. This Joint Venture represents a great opportunity to continue expanding our footprint beyond the United States and to capitalize on Canada’s federal legal framework that is scheduled be in place to produce and sell Cannabidiol edible products by the fall of 2019.”
About Bougainville Ventures, Inc. Bougainville provides cannabis infrastructure and seed-to-sale services to I-502 tenant-growers leasing greenhouse facilities space and providing fully built-out, turnkey solutions and ancillary services including processing, cannabis expertise and marketing and sales resources. Greenhouse canopies provide a 50% saving in cultivation cost.
Bougainville has 10,000 sq.ft., in near production in Oroville, WA, sufficient land for two more pods of the same size.
For more information please visit: http://bougainvilleinc.com/
On behalf of the Board of Directors BOUGAINVILLE VENTURES INC. _____________________ Andy Jagpal, CEO and Director
For further information, please contact the IR department at email@example.com or by phone at 1-877-395-6399.