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PE-backed Hempalta launches following CGT unit purchase

Hempalta has launched with the acquisition of the industrial hemp processing assets and a products division of Canadian Greenfield Technologies Corp.

Hempalta has launched with the acquisition of the industrial hemp processing assets and a products division of Canadian Greenfield Technologies Corp. No financial terms were disclosed. Financing was provided by Farm Credit Canada. Calgary-based Hempalta, an agricultural technology company focused on hemp processing and product creation, is backed by Prairie Merchant Corp, Fullbrook Thorpe Investments and Proficio Capital Partners.

PRESS RELEASE

CALGARY, Alberta (February 1, 2022) – Hempalta Inc. (“HEMPALTA” or the “Company”), a Canadian agricultural technology company focused on innovative hemp processing and product creation, has unveiled its company name and operations after acquiring industrial hemp processing assets and a products division from Canadian Greenfield Technologies Corp. (“CGT”). HEMPALTA™ is now processing industrial hemp and creating value-added products from its production facility in Calgary.

The acquisition was spearheaded by Calgary entrepreneur Darren Bondar, who is HEMPALTA’s President and CEO. He was most recently Founder, President and CEO of Inner Spirit Holdings Ltd., the public company which built Spiritleaf into Canada’s leading cannabis retail brand1 before selling the network to Sundial Growers Inc. for approximately C$131 million last year.

Bondar has now set his sights on the industrial hemp industry with its dynamic growth opportunities. Although hemp fiber has been used for many years to make paper, clothing, food, rope and building materials, most recently the focus for the crop has been on extracting cannabidiol or CBD from the hemp flower. The Company is focused on the hemp fiber component of the crop and HEMPALTA’s ability to apply new technology to commercial-scale hemp processing to deliver a variety of consumer products and supply processed hemp for industrial applications. The global market value for industrial hemp is projected to grow from US$4.7 billion in 2020 to US$14.6 billion in 2026.2

“I am very excited to launch these operations and take this new brand into an industry we think holds significant growth potential. Bringing HEMPALTA to life has taken great passion and a great team. We developed a strong relationship with the people at CGT and they have been supportive of us every step of the way. We own and operate one of their specialized HempTrain™ processing plants, and they have joined us as a shareholder in our new company,” said Bondar. CGT is now expected to focus solely on selling hemp processing units globally.

Other major shareholders in HEMPALTA include Prairie Merchant Corporation, a company controlled by W. Brett Wilson; Fullbrook Thorpe Investments LLP, a UK-based independent private equity fund; and Proficio Capital Partners, LLC, through its Founder and CEO Matthew Wosk. Financing was provided by Farm Credit Canada which is a financially self-sustaining federal commercial Crown corporation.

Bondar has a talented and capable group of employees and advisors to guide HEMPALTA and craft its business strategy. The Company’s management team includes Chris Ostafie as Vice President, who joins with extensive operations, finance and sales experience, and Brittany McKell as General Manager, who joins after five years with CGT in their marketing and manufacturing groups.

The new company expects to be an industry leader in the agricultural technology field with its innovative hemp processing operations. It is using the state-of-the-art, patented HempTrain processing plant purchased from CGT to process industrial hemp into clean, high-value fiber, green microfiber and hurd (the woody interior of the hemp stalk). These outputs are being used to create a variety of products such as food preservation pads, pet litter, animal bedding and a natural organic soil amendment.

“We currently make great products and we see opportunities to broaden and grow the markets for these products. The way we process hemp also provides us with countless opportunities to enter additional markets and expand our scope. As examples, processed hemp can be used to form car panels and skateboards, to strengthen seat belts and military uniforms, as a key component in beauty and personal care products, and to supplement the diets of animals and make their bedding more comfortable,” said Bondar.

The Company’s operations also contribute to sustainability efforts by utilizing what is considered one of the world’s most sustainable crops as hemp is a renewable, reusable and recyclable resource. The 100% natural hemp feedstock used by HEMPALTA is grown in Southern Alberta, home to some of Canada’s largest hemp acreages.3 HEMPALTA’s production facility effectively converts all hemp feedstock into high-value product streams, so it operates as a near zero waste manufacturing facility.

The Company will continue to fine-tune its existing product lines and add new products in the coming months. Bondar and his team are starting to introduce the new organization to farmers, suppliers, customers, partners and investors. The Company expects to hold an opening celebration and customer tours at its production facility this summer.

About HEMPALTA
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.