- Files Form S-1 Registration Statement to receive up to $10 million to fund expansion
- 2019 to see expansion of hempSMART brand into Europe and Asia
- MCOA to continue projects expanding role in hemp industry as a grower in the U.S. and Canada
- Aggressive pursuit of business plan includes recent upgrade to OTCQB Venture Marketplace
- U.S. hemp market projected to represent 32 percent of a $5.7 billion global hemp market in 2020
Now that U.S. federal prohibition on hemp farming has been lifted through the passage and signing of the 2018 Farm Bill, analysts are predicting that the nation’s hemp industry will swiftly establish itself as a global powerhouse in a market that is expected to reach $5.7 billion by 2020, according to Hemp Business Journal (http://cnw.fm/7n3Ej). This view of the future mirrors that of Marijuana Company of America Inc. (OTCQB: MCOA), an innovative hemp and cannabis corporation, as the company plans a bold expansion strategy that includes operations in the U.S., Europe and Asia.
“Our company will continue to be aggressive in executing our business plan and we believe this is a necessary step to help legitimize MCOA as one of the top fully reporting public cannabis companies involved in the hemp-derived CBD sector,” Marijuana Company of America CEO Donald Steinberg stated in an earlier news release announcing the company’s uplisting to the OTCQB Venture Marketplace (http://cnw.fm/Bhzj3). “MCOA will continue to expand our operations in the U.S. as well as launch our hempSMART product line internationally in 2019.”
MCOA will look to support that vision as it raises $10 million in capital to fund planned projects and expansion plans that include moving into Europe and eventually Asia with its line of hemp-derived CBD (cannabidiol) products. Right before the end of 2018, MCOA announced its filing of Form S-1 with the U.S. Securities and Exchange Commission as an important step in its efforts to raise those funds, according to a company news release (http://cnw.fm/nrq8A).
MCOA’s registration statement included a prospectus for the resale of up to 500 million of its common shares, issuable to K&J Funds, LLC, a selling stockholder, pursuant to a “put right” under an investment agreement, dated December 20, 2018, that the company entered into with K&J. The agreement permits MCOA to “put” up to $10 million in shares of its common stock to K&J over up to a 36-month period or until $10 million of such shares have been “put.”
“We are extremely excited to have K&J as our financial partner for MCOA,” Steinberg stated in the news release. “They understand the history of the Company, our clear vision for the future and the enormous market within our reach, as reflected by this substantial commitment. This funding will give us the capital needed to expand our hempSMART brand into Europe and Asia in 2019 and prepare for our continued expansion into the hemp industry as a grower and processor in California and other areas.”
MCOA’s business model is constructed around the development of industrial hemp-based CBD products, which are poised to capture market share as the hemp industry takes advantage of its newly minted legal status in the U.S. Under the MCOA umbrella, wholly owned subsidiary hempSMART offers several full-spectrum CBD products designed to revolutionize and support a healthy lifestyle (http://cnw.fm/5ZoxU).
“MCOA and our subsidiaries are anxious to take full advantage of opportunities that passage of the Farm Bill provides to the Company,” Steinberg stated in a news release following the Farm Bill’s passage (http://cnw.fm/UB6tO). “2019 will be a year of international expansion for our hempSMART product line. We believe the new Farm Bill may also establish a precedence for other countries worldwide to adopt similar laws, which will allow us the opportunity to expand more internationally.”
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
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