SAN DIEGO, April 21, 2020 /PRNewswire/ -- Youngevity
International, Inc. (Nasdaq: YGYI), today announced that
its wholly-owned subsidiaries, CLR Roasters LLC and Khrysos
Industries, Inc. (the "US Partners") have entered into an agreement
with H&H Coffee Group Export Corp and The Nica Hemp
Cooperative, Inc (the "Nicaragua Partners") to acquire the 2,200
acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua. Plans
provide for all electricity and a 15,000 AMP electrical service to
be delivered to the property and 45,000 Square feet of buildings to
be erected for extraction drying and storage, and for greenhouse
space to be added to the property. The total estimated cost
for the land and improvements is approximately $30,000,000 dollars, with H&H contributing
the 2,200 acre farm with an estimated value of approximately
$10 million, and all the capital
toward the construction of the project will be provided by The Nica
Hemp Cooperative, estimated at $20 million
dollars. The US Partners will initially contribute
$3,000,000 of extraction equipment to
the project along with its expertise in the hemp business.
Additionally, subject to Nasdaq approval, the US Partners intend to
issue 1.5 million shares of YGYI common stock to the Nica Hemp
Cooperative in exchange for a 50% stake in the land and the
improvements (having a $30,000,000
estimated value at completion) and will also issue 5 million
warrants with a strike price $1.50
per share to the Nica Hemp Cooperative and the US Partners will
receive a 75% controlling stake in the hemp grow and oil extraction
business. The warrants will be issued when the project is
completed and commences its operations
The project provides for complete preparation of the 2,200
acres; however, the initial pilot program planting will be for
approximately 200 acres with an expected production of 400,000 lbs.
of hemp bio mass on the initial acreage, which is estimated to
convert to 13,000 liters of winterized crude oil which, at current
market prices has the potential to generate $6.4 million in gross revenue. The group
anticipates growing 400 acres in year 2, 800 acres in year 3, and
2,200 acres in 2023. Fully planted the projection for hemp
yield in pounds is approximately 4.4 million pounds per year, which
is estimated to convert to 129,000 liters of winterized crude oil,
which at current market prices has the potential to generate
approximately $64 million in gross
revenue. All estimates are assuming only 1 annual crop yield,
however, the weather in Nicaragua
may be conducive to multiple harvests annually.
"This is a very impressive partnership and collaboration between
our Hemp Enterprise, our Coffee Enterprise and our very strong and
growing strategic business relationship in Nicaragua. We feel
that the value of YGYI's 50% interest in the land and
infrastructure at completion of the project along with the
assumption that the warrants will be exercised represents a
significant premium to our current trading price," said
Dave Briskie, President and CFO of
Youngevity.
"We are proud to be part of such a significant project in
Nicaragua in this burgeoning
industry. We are pleased to be executing on the exclusive
rights to grow hemp in Nicaragua
that was granted to our group in November of last year. This
project is only made possible through a strong collaboration of
experts and a vision to be a leader in this space," said
Alain Piedra Hernandez, President of
H&H Export Y CIA. LTDA.
"Our team at Khrysos is honored to be supporting this Nicaraguan
Hemp Initiative. It's always a great thing when projects of this
magnitude can come together and benefit all parties in a
significant way. This should create expanding markets and job
opportunities in both Nicaragua
and the USA," said Dwayne Dundore
Phd, President of Khrysos.
About CLR Roasters
Youngevity's coffee manufacturing division, CLR Roasters,
was established in 2001 and is a wholly-owned subsidiary. CLR
Roasters is a full-sized coffee roaster that produces gourmet
coffees under its own boutique brands — Café La Rica®, Josie's Java
House®, and Javalution®; manufactures a variety of private labels
for major national chains; and for the direct selling channel under
Youngevity International. The company remains one of the largest
suppliers in North America to the
cruise line industry. CLR was the first entrant into the fortified
coffee niche with its Youngevity JavaFit® brand. In May 2014, CLR acquired a coffee plantation and
processing facility in Nicaragua,
allowing the entity to control coffee production and quality — from
field to cup.
About Khrysos Industries, Inc.
Khrysos Industries is a leading manufacturer of commercial
hemp-based CBD extraction, post processing equipment, and
end-to-end processor of CBD isolate, distillate, water soluble
Isolate, and water-soluble distillate. Its subsidiary, INX
Laboratories provides a broad range of testing services including
potency analysis for its supply partners of hemp derived CBD
products. Khrysos provides hemp growers, feedstock suppliers, and
CBD crude oil producers the use of equipment, intellectual capital,
production consultancy, tolling services, and wholesale CBD channel
sales capabilities. Khrysos Industries was acquired by Youngevity
International (NASDAQ: YGYI) on February
12th, 2019. Be sure to visit us at khrysosglobal.com, like
us on Facebook and follow us on Twitter, or contact us at
info@khrysosglobal.com.
About Youngevity International
Youngevity International,
Inc. ( NASDAQ : YGYI ), is an
multi-channel lifestyle company operating in 3 distinct business
segments including a commercial coffee enterprise, a commercial
hemp enterprise, and a multi-vertical omni direct selling
enterprise. The Company features a multi country selling
network and has assembled a virtual Main Street of products and
services under one corporate entity, YGYI offers products from the
six top selling retail categories: health/nutrition, home/family,
food/beverage (including coffee), spa/beauty, apparel/jewellery, as
well as innovative services. For investor information, please visit
YGYI.com. Be sure to like us on Facebook and follow us on
Twitter
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
some cases, forward-looking statements can be identified by
terminology such as "may," "should," "potential," "continue,"
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," and similar expressions, and include statements
regarding plans for the electrical service to be delivered to the
property and the buildings to be erected, the total estimated cost
for the land and improvements being $30,000,000 dollars, issuing 1.5 million shares
of YGYI common stock and 5 million warrants following Nasdaq
approval to the Nica Hemp Cooperative in exchange for a 50% stake
in the land and improvements, the land and improvements having a
$30,000,000 estimated value at
completion, the expected production of 400,000 lbs of hemp bio mass
on the initial acreage estimated to convert to 13,000 liters
of winterized crude oil with the potential to generate $6.4 million in gross revenue, growing 400 acres
in year 2, 800 acres in year 3 and 2,200 acres in 2023, fully
planted Hemp Yield in pounds production being approximately 4.4
million pounds per year estimated to convert to 129,000 liters
of winterized crude oil, with the potential to generate
approximately $64 million in gross
revenue and create expanding markets and job opportunities in both
Nicaragua and the USA. These forward-looking statements are
based on management's expectations and assumptions as of the date
of this press release and are subject to a number of risks and
uncertainties, many of which are difficult to predict that could
cause actual results to differ materially from current expectations
and assumptions from those set forth or implied by any
forward-looking statements. Important factors that could cause
actual results to differ materially from current expectations
include, among others, our ability to complete the plans for the
electrical service to be delivered to the property and the
buildings to be erected, our ability to secure Nasdaq approval for
the issuance of the 1.5 million shares of YGYI common stock and 5
million warrants to the Nica Hemp Cooperative, the land and
improvements having a $30,000,000
estimated value at completion, our ability to produce 400,000 lbs
of hemp bio mass on the initial acreage, convert it to 13,000
liters of winterized crude oil and generate $6.4 million in gross revenue, our ability to
grow 400 acres in year 2, 800 acres in year 3 and 2,200 acres in
2023, our ability to produce approximately 4.4 million pounds per
year, convert it to 129,000 liters of winterized crude oil and
generate approximately $64 million in
gross revenue, our ability to create expanding markets and job
opportunities in both Nicaragua
and the USA, our ability to expand
and continue our coffee segment and hemp segment growth, our
ability to continue our international growth, our ability to
leverage our platform and global infrastructure to drive organic
growth, our ability to improve our profitability, expand our
liquidity, and strengthen our balance sheet, our ability to
continue to maintain compliance with the NASDAQ requirements, the
acceptance of the omni-direct approach by our customers, our
ability to expand our distribution, our ability to continue
our financial performance and the other factors discussed in our
Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with
the SEC, including subsequent periodic reports on Forms 10-Q and
8-K. The information in this release is provided only as of the
date of this release, and we undertake no obligation to update any
forward-looking statements contained in this release on account of
new information, future events, or otherwise, except as required by
law.
Contacts
Youngevity International, Inc.
Dave Briskie
President and Chief Financial Officer
1 800 982 3189 X6500
Investor Relations
YGYI Investor Relations
investors@ygyi.com
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