Cannabis investment firm Chemistree Technology Inc (CNSX:CHM) said Tuesday it is teaming up with a cannabis processor in Humboldt County, California, and plans to lend the company US$450,000.
Vancouver-based Chemistree said in a press release that it expects the processor to buy additional equipment and make tenant improvements to its facility. Chemistree and the California processor also plan to negotiate a line of credit for working capital.
READ: Chemistree Technologies targets burgeoning cannabis market as legalisation expands across North America
The processor holds a Type 6 (non-volatile solvent extraction) license from the state of California, according to Chemistree.
“Chemistree can provide capital and management depth to rapidly expand the processor's business, both in the local Humboldt area, across the state of California and, ultimately, into new jurisdictions across the United States where legal cannabis processing and product development is in formative stages.”
The processor uses Apeks supercritical carbon dioxide extraction to produce cannabis oil, terpene profiles and other products on behalf of cannabis cultivators, other manufacturers and processors throughout northern California, according to Chemistree.
Shares climbed C$0.02 to C$0.47 in Tuesday’s Canadian trading.
Contact Dennis Fitzgerald at [email protected]