Chemistree Partners with Humboldt County, California Cannabis Processor

Published: November 27, 2018

Chemistree Partners with Humboldt County, California Cannabis Processor

Chemistree Technology Inc. has entered into a strategic collaboration with a Humboldt County-based cannabis processing company located in Arcata, California. Pursuant to the Collaboration, Chemistree will loan the Processor US$450,000, and the parties also intend to negotiate an additional line of credit for working capital purposes. Chemistree expects the Processor will use the proceeds of the loan for business expansion, including to, among other things, purchase additional equipment and make tenant improvements to its facility.

Karl Kottmeier, Chemistree’s President, commented “This is a great advancement for Chemistree. Not only is the Processor a highly regarded service provider in the Humboldt cannabis industry, with deep relationships with local cultivators, we believe they are also primed for growth in their sector. We believe that Chemistree can provide capital and management depth to rapidly expand the Processor’s business, both in the local Humboldt area, across the state of California, and ultimately into new jurisdictions across the United States where legal cannabis processing and product development is in formative stages. Chemistree will also work with the Processor to purchase cannabis biomass on a proprietary basis and process that biomass to ultimately be sold as a Chemistree or Sugarleaf branded product.

The Processor holds a “Type 6: Non Volatile Solvent Extraction” license from the State of California. The Processor uses Apeks super critical CO2 extraction to produce cannabis oil, terpene profiles and other products on behalf of cannabis cultivators, other manufacturers and processors throughout northern California.

Chemistree expects to fund the Loan from its existing cash on hand. In addition, in consideration for benefits received by Chemistree under the Collaboration, it has agreed to issue 100,000 common shares to the principal of the Processor. Additionally, Chemistree is pleased to announce it has engaged Native Ads to provide, manage and consult on a wide variety of marketing and digital marketing initiatives for the company.