Generation Hemp Completes Acquisition Of Halcyon Thruput
Generation Hemp, Inc., a Dallas-based hemp company, has completed the previously announced acquisition of 100% of the assets of Halcyon Thruput, LLC. Halcyon Thruput is provides post-harvest and midstream services to growers by drying and processing harvested hemp directly from the field and wet-baled at the company’s 48,000-square-foot facility located in Hopkinsville, Kentucky.
The purchase price of the transaction was approximately $5.1 million, payable in $2.5 million of restricted common stock (valued at $0.40 per share) of Generation Hemp, Inc. (restricted from trading for up to one year), $1.75 million in cash, $850K in a promissory note guaranteed by Mr. Evans, and $1.0 million in assumption of existing indebtedness.
As a condition of the agreement to acquire the company, Jack Sibley and Watt Stephens, co-founders of Halcyon Thruput, will remain as officers and employees of the company under binding employment agreements for a minimum term of three years and will also become officers of the parent company, Generation Hemp.
Halcyon’s drying services technology greatly increases efficiency and capacity during harvest for farmers who need to quickly move harvested hemp while preserving the cannabinoid potency by providing scalable infrastructure essential to receive and process hemp with high moisture content (“wet”) quickly. Additionally, Halcyon offers safe storage services for processed hemp, which enables farmers to maximize strategic market timing. The company’s midstream business is fee income oriented, based upon a price per pound of material handled, and therefore is greatly protected from significant commodity price variations.
The facility is able to process approximately 4,000 wet pounds per hour or up to 75,000 – 100,000 wet pounds per day in order to meet market demands as licensed and harvested hemp acreage continues to increase across Kentucky and additional states.