(This story was updated to clarify that CGT continues to operate as an independent company — ed.)
HEMPALTA, a newly formed Canadian hemp company, said it has purchased key assets from Canadian Greenfield Technologies Corp (CGT), Calgary, for an undisclosed sum.
Included in the deal is a fiber processing factory that turns out products such as food preservation pads, pet litter, animal bedding and a natural organic soil amendment, as well as a range of products that CGT produced. HEMPALTA said it is fine-tuning that portfolio and plans to add new products in the coming months.
After shedding the assets, CGT will now focus exclusively on selling HempTrain processing units globally. The processing line includes a bale opener, main processing units, and electrical and dust control. A model with a capacity of one ton per hour is priced at roughly $2 million.
Sale price undisclosed
Financial details were not disclosed but HEMPALTA said funding for the deal was provided by Farm Credit Canada, a corporation owned by the Canadian government. CGT shareholders have taken stakes in the new company, according to HEMPALTA President and CEO Darren Bondar.
The Calgary production facility included in the deal is outfitted with CGT’s HempTrain processing line, a decortication system based on high-speed kinematic technology.
HEMPALTA said it sees further opportunities in the production of such products as car panels, skateboards, seat belts, military uniforms, beauty and personal care products, animal dietary supplements and animal bedding.
Roots in weed
Bondar was previously founder, president and CEO of Inner Spirit Holdings Ltd., which was sold to penny stock marijuana operator Sundial Growers Inc., Calgary, in a deal estimated at $103 million last year.
HEMPALTA’s management team also includes Chris Ostafie, vice president, and Brittany McKell, general manager. McKell previously worked in CGT’s marketing and manufacturing groups.
Other main shareholders in HEMPALTA include Prairie Merchant Corporation, a company controlled by private individual W. Brett Wilson; Fullbrook Thorpe Investments LLP, a UK-based independent private equity fund; and family investors Proficio Capital Partners, LLC, through its founder and CEO Matthew Wosk.