U.S. fiber processor says it has raised $2.8 million

Share this:

U.S. fiber processor BastCore LLC said it was oversubscribed for a fund raising round of $2.8 million as it develops an industrial complex near Montgomery, Alabama.

BastCore will use the money to advance its decortication and degumming technology, and add workers to meet “ovewhelming demand” for textiles and other hemp fiber markets, the company said in a press release.

“Our investors understand the vast economic potential that industrial hemp will have on multiple industries,” said BastCore CEO, Coleman Beale, a former banker with First US and USAmeriBank. “This investment gives us the necessary capital to considerably expand our production.”

Planned outputs

BastCore, which started in Nebraska in 2014, buys hemp stalks and processes them into fiber products using both the stringy bast fibers on the outside of the stalk as well as the hurd – the stem’s woody inner core. Planned outputs include different grades of bast fiber for textiles and composites; hurd for the construction industry; and “micronized core wood” (dust). The company is setting up operations in a 60,000-square-foot former steam plant on the outskirts of Montgomery that once powered America’s first municipal trolley system.

BastCore said cannabis investor Poseidon Asset Management, San Francisco, “participated” in the financing, but did not indicate at what level.

Poseidon Managing Director Morgan Paxhia said his company sees wide potential for hemp in the textiles, automotive and construction sectors, and underscored, “we have limited our exposure to U.S. CBD as we saw too much money flooding into that space.” Paxhia said the fiber applications for hemp “are many multiples the size of CBD, with much greater plant utilization.”

Recent Posts

CBD varieties don’t perform to COAs, Georgia researchers say

The hemp industry needs a robust certification system that will give growers more confidence in…

July 29, 2021

Alberta Hemp Alliance gets $300,000 grant to boost supply chain

The Alberta Hemp Alliance has received a two-year $300,000 grant from the Canadian Agricultural Partnership,…

July 29, 2021

$65 million awarded farmers in fraud case against Canadian, U.S. execs

A group of Canadian and American business executives committed negligence, fraud and deceit when they…

July 28, 2021

Washington will certify extracts produced for sale in other states

Washington state's Department of Agriculture will begin to certify hemp extracts, in a move officials…

July 28, 2021

Initiative to consolidate the global hemp industry is launched

Organizations from around the world are joining to form an international association to advance the…

July 27, 2021

CBD company sues air carrier over lost shipment of flowers

A North Carolina CBD company is suing a private air carrier for $2 million over…

July 27, 2021