EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) has announced that it is proceeding with the close of an initial equity ownership position in Farmhus GmbH, a state-of-the-art outdoor hemp facility located near Dresden, Germany.
After an unforeseen delay due to the COVID pandemic, EuroLife has completed its acquisition for the first equity tranche of ownership, representing an additional forward step in EuroLife’s European Business Model for end-to-end supply chain ownership. The complex will provide cost efficient raw product supply towards EuroLife’s pending acquisition of the HANF Hemp Retail Stores in Germany and Luxembourg. A total of seven (7) retail store fronts will have the opportunity to benefit from EuroLife’s umbrella ownership for direct-to-supply ownership of raw materials.
Farmhus GmbH has a list of assets that collectively comprise one of the largest fully operational outdoor hemp cultivation projects in Europe, including: More than 500 hectares (1,235 acres) of prime agricultural land available for hemp cultivation near Dresden, Germany; scalability via option agreement to approximately 2,000 hectares (4,900 acres); and, approximately 110,000 kilograms of existing hemp biomass currently in storage.
According to the Farmhus GmbH 2020 two-year business plan, the outdoor hemp operation is expected to generate more than €3 million from the sale of hemp oil, cosmetics, and pet food in its first season of operation. The operation is projected to have 200 hectares of hemp under cultivation and generate margins related to the sale of retail products in the range of 30-40%.
Farmhus produces cannabinoid-rich products in the food and pharmaceutical sector from certified cultivation with the highest quality. It also supplys high-quality fibers from hemp for the manufacture of textiles and materials
“Our goal to buildout a vertically integrated enterprise in the health of wellness sector took a monumental and logistically significant step forward today. With the investment into a hemp supply chain operation run by the experienced team at Farmhus, EuroLife gains a stake in a key physical asset in Europe for the growing health and wellness markets,” said Shawn Moniz, CEO of EuroLife.
“EuroLife now has an equity ownership of a highly tactical asset located in Germany. We will leverage our position to ensure a supply of affordable and consistent quality raw materials for many hemp-based products sold online and through potentially owned or related physical retail locations. We look forward to work alongside the other notable stakeholders of the project in order to establish EuroLife’s leadership position in the European health and wellness business while capturing additional value-add downstream opportunities for the Company.”
The operation will serve as a key strategic asset for EuroLife as it continues executing on its roadmap of creating a vertically integrated and diversified enterprise operating within the EU. Through sustained strategic deployment of capital and unification of synergistic assets the company aims to become amongst the largest health and wellness companies in Europe.
Boasting a population of over 700 Million citizens, with over 500 Million in the EU alone, the European opportunity afforded within the hemp and cannabidiol marketplace is growing at a substantial pace.
Source | EuroLife Brands