MYM Nutraceuticals Inc., (CSE:MYM) And Elite Ventures Procure 1.6 million Hemp Seeds To Be Planted In Nevada
MYM Nutraceuticals Inc., (CSE:MYM) together with Elite Ventures recently announced that they purchased 1.6 million hemp seeds whose CBD levels range from 10% to 20%.
The seeds were acquired from CROP’s ultra-modern nursery which measures 57,600 square feet and it is located in Nye County, Nevada. The nursery was built recently and it has LED lighting and trays where the seeds a grown. The high –tech features in the facility are designed to optimize growth in preparation for the CBD farms that were recently licensed to grow CROP’s seeds. The project was also designed to lower the risks and costs that might be involved this year’s planting season.
“With 1.6 million seeds purchased and being prepared to be planted, our 2019 grow season is nearly underway,” stated MYM CEO Howard Steinberg.
The MYM CEO also noted that the Nevada facility represents an important part of his company’s strategy as it strikes to achieve a large global footprint for CBD-rich hemp. MYM also plans to become one of the major CBD cultivators, as well as a supplier of Bulk CBD, isolate globally. The Hemp and cannabis industry has already started showing signs of rapid growth following the passing of the Farm Bill in the U.S towards the end of last year. The bill’s approval legalized hemp farming in the country.
A research firm called IMARC research estimates that the global medical marijuana market will be worth roughly $45.4 Billion USD in the next five years. The research firm projects that the same market will have a 22.9% CAGR between 2019 and 2024. IMARC research adjusted the medical cannabis market value projection from the $13.4 Billion USD probably courtesy of the Farm bill.
A deeper look at the partnership between MYM and Elite Ventures
The legalization of hemp farming in the U.S has attracted numerous Canadian companies that are rushing to the U.S to take advantage of the massive market opportunities. MYM is among those companies and it previously announced its partnership with Elite Ventures through which they planned to grow hemp on 120 acres of land in Nevada. The deal gives MYM access to the massive hemp market in the U.S
MYM will provide a capital injection of $500,000 USD to Elite Ventures as part of their agreement and will, in turn, receive the rights to 50% of the hemp that they will grow on the 120-acre land in Nevada. The deal also indicates that Elite Ventures will have full control of the activities at the farm and will also handle the processing, as well as the sale of biomass at favorable terms similar to those on its supply agreements.
The two companies estimate that they will harvest roughly 120,000 pounds of hemp from the 120-acre piece of land in Nevada in every harvest season. They also estimate that they will generate roughly $26 million USD from the sale of the produce after each harvest. They will then share the amount between themselves although MYM will receive a smaller amount due to the deductions made as processing and sales fees.