Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) announced this morning that the company has increased its ownership in public company HempCo (TSX-V: HEMP)by investing $4.3M to increase its ownership to 35% of the industrial hemp food supplier.
Based out of Canada, HempCo has operated as bulk hemp seed producer, processor, and supplier in Canada for the past decade. The company owners are long time hemp pioneers and are experts in the production of hemp based food, fibers, and nutraceuticals. HempCo has sales of $6M a year.
Previously last year, Aurora and HempCo had completed a non-brokered private placement of $3.2M. HempCo used the proceeds to complete their new processing facility, launch new product lines, and to expand the companies general operations. HempCo plans to implement its vision of becoming a company that utilizes every aspect of the hemp plant. Further investment into HempCo allows Aurora to tap into the numerous different industries the hemp plant is involved in.
HempCo CEO Diane Jang said, “Additionally, with the positive vote on the second reading of Bill C-45 in the Senate, implementation of the new Cannabis Act is that much closer, which would position us very well for whole-plant utilization and further acceleration of our business plan. These funds, and the presence of a large, stable shareholder, puts Hempco in a strong position to pursue a multitude of opportunities and create further shareholder value.”