DAVIS, Calif., Aug. 6, 2019 /PRNewswire/ --
- Venture joins Arcadia's extensive genetic expertise and resources with Legacy's proven experience in extraction and distribution.
- JV creates one vertically integrated supply chain, from seed to sale, to deliver superior hemp-derived CBD products.
- Partnership leverages Hawaii's unique geographic and climate advantages for growing hemp year-round and provides access to key international markets.
- First sales of superior hemp extract are expected in late 2019, in line with regulatory guidelines.
- JV to begin outreach to prospective farmers outlining the economic benefits of CBD hemp farming.
Arcadia Biosciences, Inc. (RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, today announced a strategic joint venture with Legacy Ventures Hawaii to grow, extract and sell superior sun-grown hemp. The new partnership, Archipelago™ Ventures, joins Arcadia's extensive genetic expertise and resources with Legacy's proven experience in extraction and sales – and leverages Arcadia's licensed cultivation facility in Hawaii. The result is one vertically integrated supply chain, from seed to sale, enabling Archipelago to deliver high quality hemp extract – with first sales expected in late 2019.
"Hawaii has special significance for Arcadia; it's where we first began our hemp research and cultivation, and it's where we continue to see the greatest opportunity for innovation and growth in industrial hemp," said Matt Plavan, president of Arcadia Specialty Genomics and CFO of Arcadia Biosciences. "Our new partnership with Legacy not only positions us to lead the rapidly evolving market in producing superior hemp – from seed to extract – but to quickly scale our operations following key regulatory approvals."
As Arcadia's new Hawaiian hemp extraction and sales partner, Legacy brings growth capital and strategic advisory in Hawaiian and Asian markets, as well as access to Legacy's equity partner, Vapen CBD. A proven leader in extraction, product formulation and sales of cannabis oils and distillate products, Vapen CBD will be responsible for the construction and operation of Archipelago's Hawaiian hemp extraction facilities. These facilities will give farmers an opportunity to convert their operations into high-grade CBD hemp production, creating new sources of jobs and revenue on the islands.
"Archipelago recognizes the tremendous market opportunity for premium Hawaiian CBD," said Shane Victorino, a principal in Legacy Ventures Hawaii. "We believe hemp has the potential to transform Hawaii's economy – and the lives of its farmers and local communities – by creating an entirely new agricultural segment based on bringing innovation, scientific integrity and investment to the islands." Victorino, a former Gold Glove and World Champion Major League Baseball player, along with other principals in Legacy are native islanders committed to building Hawaii's capacity to supply branded health and wellness goods.
Hawaii's unique geographic and climate advantages for growing and harvesting hemp year-round will provide a long-term competitive advantage that many mainland cultivators and producers will not attain. Hawaii's geographic advantage also provides access to important CBD and hemp markets in Asia.
The recent passage of the U.S. Agriculture Improvement Act of 2018 – also known as the Farm Bill – confirmed the federal legalization of hemp, the term given to non-psychoactive cannabis containing less than 0.3% tetrahydrocannabinol (THC). It also included provisions for legalizing on a federal level hemp's cultivation, transport and sale for the first time in more than 75 years. The Hemp Business Journal estimates that the hemp CBD market totaled $190 million in 2018 – an astounding rate of growth for a category that didn't exist five years ago. By 2022, the Brightfield Group, a cannabis and CBD market research firm, projects sales to reach $22 billion.
For more information on Arcadia Biosciences and its hemp operations, visit www.arcadiabio.com or follow @ArcadiaAg on Twitter.
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) develops and markets high-value food ingredients and nutritional oils that help meet consumer demand for a healthier diet. Arcadia's GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer packaged goods companies to differentiate their brands in the marketplace. The company's agricultural traits are being developed to enable farmers around the world to be more productive and minimize the impact of agriculture on the environment. Arcadia Specialty Genomics is a business unit within Arcadia Biosciences dedicated to the optimization and standardization of cannabis plant content, quality, resiliency and yield.
About Legacy Ventures Hawaii, LLC.
Legacy Ventures Hawaii was formed by a small group of investors with deep ties to the Hawaiian Islands who are interested in pursuing opportunities in CBD hemp and helping farmers through its investments in science and technology. Through the recent addition of Vapen CBD as an equity partner, Legacy is developing world-class cGMP extraction facilities for the islands to deliver high-grade hemp extract for use in premium CBD products. Vapen CBD is a division of Vapen™ MJ Ventures, which is a publicly traded cannabis operator based in Phoenix and listed on theOTCQX: VAPNF, the Canadian Securities Exchange – CSE and the Frankfurt Stock Exchange.
About Vapen™ MJ Ventures
Vapen MJ, through its wholly-owned subsidiaries, currently operates in the U.S. as an agricultural technology, services and property management company utilizing a full vertical integration business model to oversee and execute all aspects of cultivation, extraction, manufacturing (THC and CBD cartridges, concentrates, edibles), retail dispensary and wholesale distribution of high-margin Cannabis THC and Hemp CBD products under the Vapen brand. Vapen MJ expansion plans include partnering with cannabis license holders and hemp farms in multiple states within the U.S.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: Arcadia's expectations about the legal cannabis industry and potential demand for our products; the uncertainty of the laws and regulations relating to hemp and products derived therefrom; the inherent uncertainty associated with the development of new projects; our ability to obtain proper licenses and successfully complete research programs related to hemp; the acceptance of our products in the marketplace; the impact of competitive products and pricing; risks related to costs, delays and uncertainties associated with potential future scientific research, product development, clinical trials and the regulatory approval process; our partners' and affiliates' ability to develop commercial products, complete the regulatory review process for such products, acquire land and facilities to grow hemp and produce hemp derived products, and extract CBD and other hemp derived products from hemp; our compliance with laws and regulations that impact our business, and changes to such laws and regulations; our future capital requirements and ability to satisfy our capital needs; our ability to develop, enforce and defend our intellectual property rights; and the other risks set forth in our filings with the Securities and Exchange Commission from time to time, including the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2018 and other filings. These forward-looking statements speak only as of the date hereof, and Arcadia Biosciences, Inc. disclaims any obligation to update these forward-looking statements.
SOURCE Arcadia Biosciences, Inc.