VANCOUVER: Global Hemp Group (GHG) has signed a binding Letter of Intent with Prescient Strategies Group LLC (PSG) to acquire its Western Sierra Resource Corporation (WSRC) Preferred A Class Share holdings in a private, third party transaction.

The resulting acquisition of these WSRC Prefs will give GHG control over WSRC, and specifically its strategic water infrastructure assets that will be an integral part of the Company’s Colorado Hemp-Agro Industrial Zone project as originally announced on September 16, 2020.

The parties have agreed to develop the project through Innovative Hemp Technologies-a wholly owned GHG U.S. subsidiary. The resulting alignment of GHG, WSRC and their respective management teams together under one umbrella will result in a stronger and more focused and efficient entity.

As part of the contemplated transaction, GHG is in the process of commissioning updated appraisals on these water assets.

Documented historical valuations of the 4,000 acre feet of water rights and associated infrastructure are based on a 2013 and 2015 MAI appraisal and engineering reports, as well as a water law attorney’s comprehensive summary of various historic water rights appraisals and their relationship with land values dated March 2017.

All of which support a value of US$40 million or higher. GHG intends to conduct a third party valuation of this initial assessment value to support such appraisal.

Curt Huber, President of GHG stated, “This is a project that we have envisioned for a number of years. Sustainable green construction is an important cornerstone of this vision. By aligning all parties under one umbrella and with the water assets serving as a foundation, we will be able to move forward more rapidly and efficiently towards building what we expect will be significant shareholder value”.

Global Hemp Group Inc. (CSE: GHG / OTC: GBHPF / FRANKFURT: GHG), is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry the United States.

The Company is headquartered in Vancouver, British Columbia, with hemp cultivation operations in the state of Oregon. The first phase of this strategy is to develop hemp cultivation for extraction of cannabinoids and the smokable CBG flower market with the objective of creating a near term revenue stream.

The second phase of the strategy focuses on the development of value-added industrial hemp products utilizing the processing of the entirety of the hemp plant, as envisioned in the recently announced Colorado Hemp Agro-Industrial Zone (HAIZ) project. https://www.globalhempgroup.com/

Global Hemp Group forms partnership to create a sustainable economic zone in Northwest Colorado