London-based CanXchange today announced it has completed a transaction involving HempFlax, Europe’s largest independent hemp grower and processor, as the commodities trading platform continues to sign on suppliers and engage buyers.
The transaction involved the sale of a quantity of CBD nutraceuticals made by HempFlax, which also makes hemp-based plastics, construction materials and animal care products, and is active in horticulture, genetics and hemp farming. The Oude Pekela, Holland-based company farmed a total of 2,400 hectares of hemp in Europe this year.
Proof of concept
“Having leading global players like HempFlax as users of CanXchange is about the best proof-of-concept we can expect,” said Alex Arkentis, CanXchange’s CEO and co-founder. “HempFlax using our platform demonstrates how advantageous our service can be for industry players.”
CanXchange provides a range of intermediate services that assure those on both ends of commodities transactions are trustworthy, including proprietary payment tools operated by the traditional banking system, as well as robust logistics management.
The CanXchange platform has integrated a number of tools through Thomson Reuters Refinitiv service that supports due diligence investigations critical in fighting financial crimes and corruption by scanning worldwide public and private databases to identify security issues.
Once vetted, buyers and sellers can access the platform to interact anonymously until a transaction is completed. Buyers must deposit the full amount of the transaction value with CanXchange towards any purchases; both buyers and sellers are charged negotiated commissions.
“Given the operational and technical complexities of the industry, I was delighted to see that the payment and logistics of CanXchange were both efficient and effective,” said Mark Reinders, CEO at HempFlax. “Our first transactional experience was seamless and the level of simplicity for the payment and logistics process was outstanding.
Bolstering supply chain
“The presence of a service like CanXchange will significantly strengthen our industry supply chain by adding an extra layer of trust and accountability,” said Reinders, who noted HempFlax is likely to place other of its products on the trading platform.
CanXchange, which recently upgraded its platform, was started by a group that includes former investment bankers and other executives who are specialists in commodities such as oil, sugar and metals, and who have backgrounds in trading, technology, client service and the hemp industry.
HempFlax is also a founding member of CAN, a Dutch trade group that recently developed CanCheck.org, blockchain-based technology that lets consumers trace CBD along the supply chain to ensure they are getting quality products from EU approved hemp varieties. The company marked 25 years in business in 2019.