Weekend Unlimited Inc (CSE:POT) (OTCMKTS:WKULF) announced a tie-up with Calgary-based True North Cannabis, which it says, will realize the full value of its Northern Lights Organics hemp operation.
The company on Monday also revealed it will change its name to Weekend Unlimited Industries Inc, as part of requirements under its move to British Columbia, along with details of a share split.
True North has a proven track record for creating value for hemp growers across Canada by providing guidance and technology to produce commercially viable, extract-ready CBD biomass from industrial hemp, said Weekend in a statement.
Northern Lights Organics has both certified organic land and a proprietary CBD-yielding cultivar, as well as impressive results from genetic research trials.
"This is a partnership that will create synergies moving forward allowing Northern Light Organics to fully realize the value of our asset,” said Chris Backus, Weekend's president and CEO.
"Anyone can plant hemp in the ground, however the key to success in the industry is to be able to produce and harvest premium output and sell that output to the market for the best price. True North is an expert in the space of hemp harvesting for CBD and have brokered millions of dollars of biomass to some of Canadas biggest CBD licensed producers.
"In addition, they bring a breadth of knowledge to our business model beyond the sale of biomass; with future consideration expanding to pedigree seed production and Hemp Craft/fiber sales. Having True North as close advisors and partners with Northern Lights Organics provides significant upside for the overall success of both our short and long-term operations.”
Excited about opportunity
Meanwhile, chief executive of True North Shayne Hamilton added: "We are excited at the opportunity to work alongside the Northern Lights Organics team for their upcoming hemp crops. The results observed in their research trials to date are extremely promising and indicate the potential to produce a premium hemp-based CBD biomass for CBD extraction."
The share consolidation is based on one post-consolidation share for every ten pre-consolidation shares. The post-consolidation shares will begin trading under the new name on January 21 (Tuesday). The firm will retain the stock symbol 'POT'.
"The consolidation is necessary to attract new capital and position the company to realize the full potential of current assets and undertake possible future acquisitions," said Backus. "We have lucrative assets and it is essential that we structure the company in such a way to fund the development and growth of those assets to generate significant revenues."
Shares in Toronto added over 16% to C$0.035.
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