Alberta-Based Agricultural Technology Company HEMPALTA(TM) Initiates Crowdfunding Round with Investors to Raise Funds to Accelerate Growth
Company has generated interest with its hemp processing capabilities and innovative hemp-based products designed to make the planet healthier and more sustainable
Proven and experienced management team led by serial entrepreneur and CEO Darren Bondar project multiple opportunities to expand Calgary-based company within growing industrial hemp market
Calgary, Alberta--(Newsfile Corp. - September 8, 2022) - Hempalta Inc. ("HEMPALTA" or the "Company"), a Canadian agricultural technology company focused on innovative hemp processing and product creation, today announced the launch of a crowdfunding round available on FrontFundr to raise up to $1.8 million to fund strategic technology acquisitions, support sales and marketing activity, and for working capital purposes.
HEMPALTA was created with a clear mission: to be at the forefront of the next evolution in agriculture by utilizing advanced technology to produce hemp-based products for a healthier and sustainable planet. Hemp is regarded as one of the world's most sustainable crops as it is renewable, reusable and recyclable. The market value for industrial hemp is projected to almost triple in the next five years alone.1
HEMPALTA intends to be a major disruptor to traditional and environmentally destructive agricultural techniques by targeting the growth potential of industrial hemp fiber. The Company expects to apply new technologies to commercial-scale hemp processing to deliver a variety of consumer products and to supply processed hemp for industrial applications. Hemp can be used to produce more than 25,000 commercial and industrial products at this time.2
"We are excited to enable investors of all shapes and sizes to invest with us and support our mission to better the planet. Consumers demand more accountability, and we have listened. We recognized the need for sustainable and planet-friendly practices and have found a solution with industrial hemp processing. Our focus is on growing product lines both for consumer and commercial use, increasing production capacity and output, and expanding our market coverage," said Darren Bondar, CEO of HEMPALTA.
Since the launch of HEMPALTA earlier this year, the Company has made significant improvements to its product lines, its production scalability, and its distribution channels which now include many major Canadian retailers. Its Hemp-Fresco™ food saving pads and HempyCat™ litter are selling at select locations of Sobeys Inc., one of Canada's largest retailers with over 1,500 stores, and at other retail chains such as Safeway Canada and Calgary Co-op as well as online with Amazon and Loblaws. HEMPALTA also supplies Peavey Mart with HEMPALTA premium animal bedding for their 85 farm and ranch retail stores across the country.
HEMPALTA has received strong involvement and financial support from notable partners, including Prairie Merchant Corporation and Fullbrook Thorpe Investments, and has successfully raised $3.3 million to date in equity financing as well as an additional $1 million term loan from Farm Credit Canada. This support has allowed the Company to make significant strides during its initial growth phase.
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HEMPALTA's go-to-market strategy phase will include making ongoing technological improvements to its operations to expand its product lines and serve growing markets. In the near term, the Company intends to install a new Paxiom automated packaging solution to scale up its product packaging and delivery capabilities, with installation projected for late 2022.
"We are bringing a new mindset to the industrial hemp market and that includes ensuring we are leveraging new technology and techniques to better operate and serve additional customers. A newly automated packaging solution can help us increase our production output to feed our hemp products into the new retail channels we are signing on. An investment in this packaging will allow us to amp up our production and increase our packaging rate up to 25 bags per minute," said Bondar.
The FrontFundr crowdfunding round for HEMPALTA is projected to run until November 2, 2022.
1 Market numbers are provided in ResearchAndMarkets.com's "Global Industrial Hemp Market Report and Forecast 2021 to 2026." Global market value is projected to grow from US$4.7 billion in 2020 to US$14.6 billion in 2026.
2 Statistic available from multiple sources including "Hemp as an Agricultural Commodity," a U.S. Congressional Research Service report published on June 22, 2018 by Renée Johnson, Specialist in Agriculture Policy.
Hempalta Inc. is an agricultural technology company focused on innovative hemp processing and product creation. It is one of the only commercial-scale hemp processors in North America able to manufacture high-value hemp products. HEMPALTA™ products are made from industrial hemp grown sustainably in Southern Alberta and processed using a state-of-the-art HempTrain™ Advanced Processing Plant at our production facility in the heart of Calgary, Alberta, Canada. The Company is led by passionate advocates for industrial hemp who have years of operations, manufacturing, marketing, consumer packaged goods and retail sales experience. We work with progressive farmers and world-recognized researchers with unparalleled expertise. Learn more at www.hempalta.com.
HEMP TO BETTER THE PLANET.™
This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is typically, but not always, identified by the use of words such as "project", "intends", "expects", and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding: management projecting multiple opportunities to expand the Company within the growing industrial hemp market; the FrontFundr crowdfunding financing of the Company (the "Financing"); the proceeds of the Financing being used to accelerate growth and fund strategic technology acquisitions to support increase in output and scalability of the Company; the market value for industrial hemp almost tripling in the next five years; the Company expecting to apply new technologies to commercial-scale hemp processing to deliver a variety of consumer products and to supply processed hemp for industrial applications; and the near term intention of the Company to install a new Paxiom automated packaging solution in late 2022.
Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the completion of the Financing and the timing thereof; and the ability of the Company to successfully implement its strategic plans and initiatives and whether such strategic plans and initiatives will yield the expected benefits. Although the Company believes that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
Actual results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: conditions in the industrial hemp industry; the risk that the Financing will not be completed as anticipated or at all; the ability of management to execute its business strategy, objectives and plans; the availability of capital to fund the purchase and installation of a new Paxiom automated packing solution, and the timing thereof; and the impact of general economic conditions and the COVID-19 pandemic in Canada. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, except as required by applicable law.