MONTGOMERY, Ala., April 20, 2021 /PRNewswire/ -- Manufacturing industrial hemp fiber processing & technology company BastCore announced Tuesday that it has completed an oversubscribed Series A financing for $2.8 million.
Poseidon Asset Management participated in the oversubscribed round. "Poseidon has been investing in cannabis and hemp since our first fund was launched back in 2014," said Poseidon Asset Management Managing Director, Morgan Paxhia. "Our capital has helped to create thousands of jobs and millions in tax revenues and we believe this economic energy is coming to the US industrial hemp industry. We have limited our exposure to US CBD as we saw too much money flooding into that space, but industrial hemp for textiles, automotive, construction, etc., are many multiples the size of CBD, with much greater plant utilization. BastCore has developed innovative industry leading technology capable of supporting and transforming massive industries. This is a great American story in the making."
"Our investors understand the vast economic potential that industrial hemp will have on multiple industries," said BastCore CEO, Coleman Beale. "They recognize the value of BastCore's leading decortication technology. It is exciting to see the investment community recognize the critical need to build a consistent, reliable supply chain. This investment gives us the necessary capital to considerably expand our production."
The Montgomery, Alabama based firm intends to utilize the proceeds to further enhance its proprietary decortication and degumming technology, hire new personnel & serve the overwhelming demand it is seeing from the textiles market in addition to many other markets. "The addressable market opportunity is massive", said BastCore Managing Director, Austin Bryant. "Billion dollar opportunities are great, but when you have proprietary technology that can solve the processing issue for the farmers and help them monetize their product in addition to capitalizing on a trillion dollar market opportunity in terms of end consumer products, now you have my attention. We always say that we are building more than just a company here, we are building an industry."
BastCore, which was founded in 2014 specializes in processing industrial hemp and has the opportunity to supply the raw material for over 25,000 industrial use cases and applications. BastCore works closely with all its partners to ensure product traceability and transparency. "Global supply chains are in the process of disruption. Our partners demand transparency and traceability. BastCore is extremely well positioned to capitalize on this trend, and we look forward to providing good manufacturing based jobs here in the US," said Beale.
BastCore buys hemp stalks and sells fiber products, bridging the gap between farmers growing hemp and industries demanding cost-competitive, sustainably produced raw materials. BastCore innovates using hemp, a low input, high-yielding crop, by transforming it into numerous sustainable biobast products. To learn more about BastCore visit https://bastcore.com/contact/.