Youngevity International, Inc (Nasdaq:YGYI) Completes Joint Venture in Nicaragua for Large Scale Processing Facility and 2200 Acres of Hemp Grow
$30,000,000 Project includes Grow, Extraction, and Winterization Process
SAN DIEGO, April 21, 2020 /PRNewswire/ -- Youngevity International, Inc. (Nasdaq: YGYI), today announced that its wholly-owned subsidiaries, CLR Roasters LLC and Khrysos Industries, Inc. (the "US Partners") have entered into an agreement with H&H Coffee Group Export Corp and The Nica Hemp Cooperative, Inc (the "Nicaragua Partners") to acquire the 2,200 acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua. Plans provide for all electricity and a 15,000 AMP electrical service to be delivered to the property and 45,000 Square feet of buildings to be erected for extraction drying and storage, and for greenhouse space to be added to the property. The total estimated cost for the land and improvements is approximately $30,000,000 dollars, with H&H contributing the 2,200 acre farm with an estimated value of approximately $10 million, and all the capital toward the construction of the project will be provided by The Nica Hemp Cooperative, estimated at $20 million dollars. The US Partners will initially contribute $3,000,000 of extraction equipment to the project along with its expertise in the hemp business. Additionally, subject to Nasdaq approval, the US Partners intend to issue 1.5 million shares of YGYI common stock to the Nica Hemp Cooperative in exchange for a 50% stake in the land and the improvements (having a $30,000,000 estimated value at completion) and will also issue 5 million warrants with a strike price $1.50 per share to the Nica Hemp Cooperative and the US Partners will receive a 75% controlling stake in the hemp grow and oil extraction business. The warrants will be issued when the project is completed and commences its operations
The project provides for complete preparation of the 2,200 acres; however, the initial pilot program planting will be for approximately 200 acres with an expected production of 400,000 lbs. of hemp bio mass on the initial acreage, which is estimated to convert to 13,000 liters of winterized crude oil which, at current market prices has the potential to generate $6.4 million in gross revenue. The group anticipates growing 400 acres in year 2, 800 acres in year 3, and 2,200 acres in 2023. Fully planted the projection for hemp yield in pounds is approximately 4.4 million pounds per year, which is estimated to convert to 129,000 liters of winterized crude oil, which at current market prices has the potential to generate approximately $64 million in gross revenue. All estimates are assuming only 1 annual crop yield, however, the weather in Nicaragua may be conducive to multiple harvests annually.
"This is a very impressive partnership and collaboration between our Hemp Enterprise, our Coffee Enterprise and our very strong and growing strategic business relationship in Nicaragua. We feel that the value of YGYI's 50% interest in the land and infrastructure at completion of the project along with the assumption that the warrants will be exercised represents a significant premium to our current trading price," said Dave Briskie, President and CFO of Youngevity.
"We are proud to be part of such a significant project in Nicaragua in this burgeoning industry. We are pleased to be executing on the exclusive rights to grow hemp in Nicaragua that was granted to our group in November of last year. This project is only made possible through a strong collaboration of experts and a vision to be a leader in this space," said Alain Piedra Hernandez, President of H&H Export Y CIA. LTDA.
"Our team at Khrysos is honored to be supporting this Nicaraguan Hemp Initiative. It's always a great thing when projects of this magnitude can come together and benefit all parties in a significant way. This should create expanding markets and job opportunities in both Nicaragua and the USA," said Dwayne Dundore Phd, President of Khrysos.
About CLR Roasters
Youngevity's coffee manufacturing division, CLR Roasters, was established in 2001 and is a wholly-owned subsidiary. CLR Roasters is a full-sized coffee roaster that produces gourmet coffees under its own boutique brands — Café La Rica®, Josie's Java House®, and Javalution®; manufactures a variety of private labels for major national chains; and for the direct selling channel under Youngevity International. The company remains one of the largest suppliers in North America to the cruise line industry. CLR was the first entrant into the fortified coffee niche with its Youngevity JavaFit® brand. In May 2014, CLR acquired a coffee plantation and processing facility in Nicaragua, allowing the entity to control coffee production and quality — from field to cup.
About Khrysos Industries, Inc.
Khrysos Industries is a leading manufacturer of commercial hemp-based CBD extraction, post processing equipment, and end-to-end processor of CBD isolate, distillate, water soluble Isolate, and water-soluble distillate. Its subsidiary, INX Laboratories provides a broad range of testing services including potency analysis for its supply partners of hemp derived CBD products. Khrysos provides hemp growers, feedstock suppliers, and CBD crude oil producers the use of equipment, intellectual capital, production consultancy, tolling services, and wholesale CBD channel sales capabilities. Khrysos Industries was acquired by Youngevity International (NASDAQ: YGYI) on February 12th, 2019. Be sure to visit us at khrysosglobal.com, like us on Facebook and follow us on Twitter, or contact us at [email protected].
About Youngevity International
Youngevity International, Inc. ( NASDAQ : YGYI ), is an multi-channel lifestyle company operating in 3 distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise. The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewellery, as well as innovative services. For investor information, please visit YGYI.com. Be sure to like us on Facebook and follow us on Twitter
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and include statements regarding plans for the electrical service to be delivered to the property and the buildings to be erected, the total estimated cost for the land and improvements being $30,000,000 dollars, issuing 1.5 million shares of YGYI common stock and 5 million warrants following Nasdaq approval to the Nica Hemp Cooperative in exchange for a 50% stake in the land and improvements, the land and improvements having a $30,000,000 estimated value at completion, the expected production of 400,000 lbs of hemp bio mass on the initial acreage estimated to convert to 13,000 liters of winterized crude oil with the potential to generate $6.4 million in gross revenue, growing 400 acres in year 2, 800 acres in year 3 and 2,200 acres in 2023, fully planted Hemp Yield in pounds production being approximately 4.4 million pounds per year estimated to convert to 129,000 liters of winterized crude oil, with the potential to generate approximately $64 million in gross revenue and create expanding markets and job opportunities in both Nicaragua and the USA. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to complete the plans for the electrical service to be delivered to the property and the buildings to be erected, our ability to secure Nasdaq approval for the issuance of the 1.5 million shares of YGYI common stock and 5 million warrants to the Nica Hemp Cooperative, the land and improvements having a $30,000,000 estimated value at completion, our ability to produce 400,000 lbs of hemp bio mass on the initial acreage, convert it to 13,000 liters of winterized crude oil and generate $6.4 million in gross revenue, our ability to grow 400 acres in year 2, 800 acres in year 3 and 2,200 acres in 2023, our ability to produce approximately 4.4 million pounds per year, convert it to 129,000 liters of winterized crude oil and generate approximately $64 million in gross revenue, our ability to create expanding markets and job opportunities in both Nicaragua and the USA, our ability to expand and continue our coffee segment and hemp segment growth, our ability to continue our international growth, our ability to leverage our platform and global infrastructure to drive organic growth, our ability to improve our profitability, expand our liquidity, and strengthen our balance sheet, our ability to continue to maintain compliance with the NASDAQ requirements, the acceptance of the omni-direct approach by our customers, our ability to expand our distribution, our ability to continue our financial performance and the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Contacts
Youngevity International, Inc.
Dave Briskie
President and Chief Financial Officer
1 800 982 3189 X6500
Investor Relations
YGYI Investor Relations
[email protected]
SOURCE Youngevity International, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article