Exactus Inc (OTCMKTS:EXDI) shares rose Thursday as it unveiled plans to expand its partnership with cannabinoid hemp plant company Hemptown USA, which will include the ramping up of farming and supply chain development.
The move represents an important milestone positioning Exactus for rapid growth through Hemptown, which is a mutually beneficial CBD (cannabidiol) and CBG (cannabigerol) partner, the Florida-based firm said in a statement.
"While many industries are at a standstill, Exactus continues to move forward in order to keep up with supply and demand," said Bobby Yampolsky, chairman of Exactus.
"We are seeing an increase of interest in CBD and CBG while people look for natural alternatives to manage the many stressful aspects of life surrounding the virus.
"Exactus Inc. Interim CEO, Emiliano Aloi will further develop the production platforms for both companies, working in the fields with Hemptown to provide immeasurable benefits to both companies," he added.
The tie-up includes the firm helping Hemptown’s management in necessary compliance requirements for products, participating in discussions related to 2020 farming, harvesting and processing plans, as well as joint supply scenarios.
Exactus will work with Hemptown's ingredient and manufacturing divisions to develop selected units to service the white label market, the company added.
Hemptown USA announced the acquisition of Kirkman Group in 2019, through which Hemptown has an FDA licensed, cGMP 25,000 square-foot nutraceutical manufacturing facility.
This offers opportunities for Exactus to enter the consumer-packaged goods space, also noted the company.
Exactus shares in New York added 7.3% to stand at US$0.11.
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