TORONTO–(BUSINESS WIRE)–Terrace Global Inc. (“Terrace Global” or the “Company”) (TSXV:TRCE) is pleased to announce that it has exercised its option and acquired all of the issued and outstanding shares in the capital of Oransur, S.A. (“Oransur”), a high CBD hemp cultivation business based in Uruguay. Oransur holds a license to cultivate hemp over up to 150 acres and is in the process of sowing its second outdoor hemp crop in Uruguay. In Uruguay, licensed producers of hemp are allowed to grow hemp that contains up to 1% THC and without restrictions on other cannabinoids, such as CBD and CBG.
“Oransur presents a very unique opportunity for us because it establishes a pathway for high CBD genetics production with up to 1% THC on a counter cyclical basis to hemp produced in the Northern Hemisphere,” commented Francisco Ortiz von Bismarck, Co-founder and CEO of Terrace Global. “We were encouraged by the ability of the Oransur team to source high CBD genetics from the United States and immediately commence the roll out of a seedling greenhouse for the purpose of cultivating these genetics.”
Exercise of Call Option Agreement
Pursuant to a call option agreement entered into on August 30, 2018, as amended, Terrace Global has acquired all of the issued and outstanding shares in the capital of Oransur. In addition, Terrace Global has received all of the requisite regulatory approvals in order to acquire Oransur. For further information regarding the call option agreement, please refer to the Company’s non-offering prospectus dated November 7, 2019, which is available at www.sedar.com.
Oransur Operational Update
In October 2019, Oransur successfully imported high CBD genetics from Colorado. These genetics include seeds that are ranging between 10-15% CBD (non-feminized and feminized varietals).
Oransur has constructed a 2,000 square foot greenhouse for the propagation and germination of approximately 6,000 high CBD seedlings. To date, the company has seen germination rates between 80-97% for these seedlings.
Oransur commenced the transplant of the seedlings the week of November 25, 2019 over approximately three acres. The team is also anticipating planting an additional 10 acres this week with genetics sourced from the European Union, using both low density and high-density planting. The E.U. genetics include Futura 75 and Fedora 17.
“We are in the process of determining which genetics are best suited to the climate at our property in San Fernando, Uruguay,” commented Gaston Magri, General Manager of Oransur. “We are excited by the preliminary results of our high CBD genetics and will continue to monitor our agronomic plan to ensure the best results possible.”
Establishment of Hemp Drying Facility
Oransur has entered into a one-of-a-kind partnership with a GACP (Good Agricultural and Cultivation Practices) drying facility. Currently, Oransur has access to drying capacity of 24 tonnes of wet material per 48-hour cycle. The team designed a system that allows continuous hot air to flow uniformly throughout the drying containers to guarantee a dry product under a 9% moisture content. The system not only allows for a more cost-effective manner of drying hemp in large volumes, but it also provides the ability to maximize the ideal point of maturation of biomass and CBD% per plant at the point of harvest.
Appointment of Vice-President, Cultivation
Terrace Global is pleased to announce the appointment of Kevin Sanchez to the position of Vice-President, Cultivation. Kevin oversees all cannabis and hemp production facilities Company-wide. Assisting all farm supervisors with coordinating proper planting schedules, genetic selection, growing techniques, and implementation of proper GACP/GMP protocols.
Mr. Sanchez is a graduate of The University of Florida receiving a Bachelor of Science in Agricultural and Life Sciences with a minor degree in Agricultural Business Management. Previously, Mr. Sanchez operated a commercial farm in Florida for The Stronach Group, Agricultural Division. Mr. Sanchez’s background comes from an extensive upbringing in agriculture being a 4th generation farmer that has gathered extensive experience in large scale production agriculture.
Mr. Sanchez joins Gaston Magri, Oransur Project Manager, as the project leads in Uruguay. Mr. Magri is the head agronomist in Uruguay and has been on the forefront of leading the cannabis/hemp projects for Oransur since early 2018. Mr. Magri supervises the Oransur operation and deals with all day-to-day operations, including cultivation, processing and sales.
About Terrace Global
Terrace Global is a multi-country operator (MCO) led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets. Terrace Global’s focus is on federally legal jurisdictions with existing domestic demand, low cost inputs and approved for exportation. Terrace Global’s existing asset platform consists of: (1) a 33.75% indirect equity interest in one of the currently two recreational cannabis operations in Uruguay; (2) 100% of Oransur, S.A., a Uruguayan company producing high CBD hemp in Uruguay; (3) 100% of Terra Nova Produção e Comercialização de Produtos Natuis e Farmacêuticos, Lda, a Portuguese company with a pre-license issued by INFARMED for the cultivation, importation, and exportation of medical cannabis in Portugal; and (4) 100% of Pharmabinoide S.L., a Spanish company producing and commercializing hemp in Spain. MariMed Inc. (OTCQX: MRMD), a multi-state cannabis operator in the U.S., dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products, owns approximately 6% of Terrace Global.
This news release contains certain forward-looking statements, including, but not limited to, statements about the Company’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
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