A California company that sells coffee to cruise lines and grocery stores says two of its subsidiaries have entered into an agreement with Nicaraguan cooperative to buy a farm for a hemp grow and processing facility.
Youngevity International of Chula Vista announced Tuesday that CLR Roasters LLC and Khrysos Industries, Inc., its two subsidiaries, have an agreement to H&H Coffee Group Export Corp and the Nica Hemp Cooperative, Inc. Khrysos makes CBD-infused coffees in Florida.
The agreement calls for Youngevity’s subsidiaries to acquire the 2,2000-acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua.
The agreement calls for all electricity to be delivered to the property and 45,000 square feet of buildings for extraction, drying, storage, and greenhouse space. The buildings are yet to be added to the property.
H&H will contribute the farm, worth about $10 million. Construction improvements are estimated to be worth $30,000,000, with the Nica Hemp Coperative providing an estimated $20 million toward the construction of the project.
The U.S.-based companies will initially provide $3,000,000 of extraction equipment for the project.
Pending Nasdaq approval, Youngevity (Nasdaq: YGYI) and its partners intend to issue $1.5 million shares of YGYI common stock to Nica Hemp Cooperative for a 50% stake in the land and the improvements.
The U.S. partners will have a 75% controlling stake in the hemp grow and oil extraction business.