Exactus to provide Ceed2Med 10,000 lbs of 2019 harvested hemp flower

Exactus Inc (OTCMKTS:EXDI) announced Wednesday that it has entered into a supply and distribution agreement to provide Ceed2Med a minimum of 10,000 lbs of 2019 harvested flower. 

According to a statement, the hemp harvest will come from Exactus’ 200-acre farm in Southwest Oregon. 

“Ceed2Med is a leader in the distribution of high-quality bulk hemp products along the east coast of the United States,” said Exactus CEO Emiliano Aloi.

READ: Exactus 2019 harvest beating expectations thanks to better-than-anticipated growing conditions

“We are establishing a solid supply and distribution dynamic that allows them to service their demand with our high-quality product, while we maximize the returns of our bulk flower segment with minimal operational liabilities. By working closely with Ceed2Med, we are accessing a much higher price bracket than we would with bulk flower with our current operations. Our focus can now be on expanding our finished product segment which has a much larger profit opportunity for us.”

Bobby Yampolsky, CEO of Ceed2Med and chairman of the Exactus’ board, said his company is a major shareholder and supporter in Exactus and is impressed with the quality of the hemp flower from the 2019 harvest.

“We are comfortable putting Ceed2Med’s reputation behind their products,” Yampolsky said. “Ceed2Med has an extensive client portfolio and we know that this product meets the highest quality requirements, allowing Exactus to increase the returns for all shareholders, by harnessing a big portion of the upside from our distribution business.”

Pursuant to the terms of the agreement, Exactus will supply Ceed2Med a minimum of 10,000 lbs of bulk untrimmed dry industrial hemp flower in 150 lb humidity-controlled totes. 

Ceed2Med, in turn, will complete the conditioning, trimming and packaging of the product as per current wholesale market needs and distribute it to its clients at a higher profitability point, sharing Exactus in the upside of the operation.

Exactus, based in Delray Beach, Florida, began hemp operations in early 2019. Since transitioning to hemp, the firm has executed a series of moves to position itself for revenue growth into 2020, such as the acquisition of Green Goddess Extracts and luxury cosmetics brand LeVor Collection. Ceed2Med is based in Delray Beach as well.

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Story by ProactiveInvestors