Ascent Industries partners with AgTech Scientific to create new company: Thirty Eight Hemp Corp

Ascent Industries Corp (CSE:ASNT) announced Monday that it has teamed up with AgTech Scientific Inc to create new company aimed at launching the company’s global hemp strategy.

Meet Thirty Eight Hemp Corp.

Thirty Eight Hemp said it has signed a hemp supply agreement with AgTech Scientific Inc. of Paris, Kentucky, a licensed cultivator, processor and distributor of high-cannabidiol content hemp and hemp-based biomass.

“Thirty Eight Hemp’s investment into and partnership with AgTech will expand the company’s access to the high-quality, low-cost input material for our hemp-based products in North America once the Hemp Farming Act is passed,” said Reid Parr, chief operating officer of Ascent Industries.

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“We look forward to future collaboration to meet anticipated market demand for hemp-based CBD products across several market channels.”

The company said the regulatory regime in the United States relating to cannabidiol (CBD) is undergoing a significant transformation and movement toward the removal of hemp (cannabis with less than 0.3% tetrahydrocannabinol content) from Schedule I of the United States Controlled Substances Act is gaining momentum.

Thirty Eight Hemp plans to produce and distribute CBD and other hemp-derived products throughout the United States and abroad, which will significantly expand the company’s hemp distribution.

Under the agreement, AgTech will supply up to 25% of its hemp biomass production containing greater than 10% CBD to Thirty Eight Hemp, either in the form of biomass or extracted CBD, with no minimum amounts required to purchase. In addition, the company will increase its ownership interest in AgTech to approximately 10%, subject to appropriate approvals being received, by investing US$500,000 in AgTech.

The company said AgTech will assist Thirty Eight Hemp with the distribution of various CBD and other hemp-derived products in approved jurisdictions in the United States, while Ascent will provide certain expertise and intellectual property to help AgTech with building its next hemp processing facility in Kentucky.

“The success of our business model is built on rich partnerships: The State of Kentucky, the University of Kentucky, the farmers of Kentucky and now our partnership with Thirty Eight Hemp Co,” said Dr. Brian C. King, chief science officer of AgTech.

“We look forward to being a leading supplier of industrial hemp to Thirty Eight Hemp Co. and benefiting from their expertise in research, development and production of CBD and CBD-based products.”

Contact Katie Lewis at [email protected]

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Story by ProactiveInvestors