Elixinol Global (ASX:EXL) and subsidiary Elixinol LLC. announced this week that the companies have partnered with Kersey Agricultural company to help supply and maintain Elixinol’s hemp and CBD supply chain.
Elixinol will fund the new joint venture named, Northern Colorado High Plains Producers, with $1.8M with Kersey Ag Co. contributing 700 acres of farmland. The 700 acres contains a 5-year lease that has the possibility to be extended up to 30 additional years. The land that Kersey Ag is contributing also contains the water rights and efficient drip-irrigation techniques.
Northern Colorado High Plains Producers will grow organic industrial hemp for CBD propagation. The revenue produced from this joint venture will be split 50/ 50 among the two companies.
Gabriel Ettenson co-founder and general manager of Elixinol LLC gave this statement in the press release:
“This partnership signifies Elixinol’s commitment to support US hemp while leading the global hemp industry with a modern supply chain, which enables us to consistently and predictably provide premium CBD products that meet not only our standards, but our customer’s standards also.”