SOL Global Announces Formation of International Hemp Company Heavenly Rx
February 25, 2019 (Source) — Initial Investments Include US$30.6M Majority Stake in Hemp Company Blühen Botanicals
SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCQB: SOLCF) (Frankfurt: 9SB) is pleased to announce the formation of a new international hemp-focused subsidiary, Heavenly Rx Ltd. (“Heavenly Rx“).
Heavenly Rx intends to hold controlling ownership interests in various industry-leading assets in the hemp/CBD and THC-free cannabinoid wellness space, with an initial focus on hemp cultivation, processing and the manufacturing of a diverse range of traditional CBD products including oils, tinctures, balms, and vape-ready products. Additionally, Heavenly Rx intends to include several proprietary brands across numerous consumer product group verticals such as cosmetics and beauty products, bath and body products, infused foods (subject to governmental approvals and/or compliance) and a number of pet-related products.
SOL Global and its executive team were deeply involved in the political process surrounding the recent passage of the U.S. federal Hemp Farming Act, which removed industrial hemp and CBD products with less than 0.3% THC from Schedule I of the U.S. federal Controlled Substances Act, and SOL Global has been working diligently over the past six months to identify and target world-class hemp companies and brands that it intends to invest in through Heavenly Rx.
“Heavenly Rx directly supports SOL Global’s continued hemp and CBD strategy in the U.S. and international markets and will serve as a critical launchpad for our hemp-related investment initiatives as hemp and related cannabinoid regulations continue to become more liberalized around the world,” said Brady Cobb, CEO of SOL Global. “SOL Global’s executive team has been at the very forefront of regulatory reform both in the United States and internationally, and we couldn’t be more excited to continue to build upon and execute our already robust long-term strategy for the global hemp/CBD industry.”
SOL Global intends to announce numerous hemp and CBD related investments in various assets across the globe, all of which will be assigned to Heavenly Rx.
Heavenly Rx is uniquely positioned to support the growing CBD marketplace while leveraging SOL Global’s connections and expertise in building cohesive brands and being first to market. In the coming weeks, Heavenly Rx will announce its management team and the members of its Board of Directors. Heavenly Rx will make its executive appointments by tapping into talent from across the consumer products, logistics, and hemp/CBD industries.
“We are launching Heavenly Rx with the aim of acquiring a portfolio of battle-tested and proven hemp/CBD companies while also acquiring certain unique brands for which we believe CBD and hemp-infused products could drastically change their growth,” added SOL’s chief investment officer Andy DeFrancesco. “We are more bullish than ever about the future of the hemp and CBD industries globally, and Heavenly Rx will without a doubt be the vertically integrated leader in the space. Heavenly Rx is not simply an investment company, but rather a laser focused global Hemp and CBD company only for all operations under the Heavenly Rx banner.”
Among Heavenly Rx’s first strategic assets in the growing hemp industry is its investment in Knoxville, Tennessee-based Blühen Botanicals LLC (“Blühen“). Heavenly Rx, through an assignment from SOL Global of a binding letter of intent (“LOI”), shall invest US$30.6 million in Blühen, which will allow Blühen to expand its research and engineering teams as well as focus on the development and expansion of its retail operations. Blühen is an industry leading and technologically advanced hemp biomass processing and extraction company that will be GMP and EUGMP certified with farming and distribution partners across the southeastern United States. With a dedicated, pharmaceutical-grade hemp research facility, Blühen also produces its own proprietary blend of wellness boutique products such as full spectrum hemp extract tinctures, capsules, creams, 100% THC-free hemp isolate, pet treats, pet care products, and oils. Blühen employs expert entomologists, plant pathologists, agronomists, chemists, and engineers on the 30-person team. Blühen intends to open its flagship retail location in Knoxville, Tennessee in May 2019 and plans to open a second retail location in Fort Lauderdale, Florida later this year.
The binding terms of the LOI are as follows:
- Heavenly Rx will acquire 50.1% of the membership interests of Blühen.
- The Board of Directors of Blühen will consist of seven (7) individuals, three (3) of which will be nominated by Heavenly Rx, three (3) of which will be nominated by Blühen, and one (1) of which shall be an independent director to be mutually agreed upon.
- Joe Fox, co-founder and CEO of Blühen Botanicals, will become a member of the executive team of Heavenly Rx.
“Heavenly Rx’s investment enables us to exponentially scale our existing high-throughput capabilities while maintaining our commitment to providing the highest quality, pharmaceutical grade products on the market,” added Fox. “We have the largest network of expert farmers in the state of Tennessee who are growing hemp organically, and now, we’re empowered to scale our existing facilities faster, expand our farming network wider, and implement the highest international regulatory standards across the board.”
About SOL Global Investments Corp.
SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company’s R&D program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States’ medical cannabis industry.
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