Gaia Grow Corp., - CEO, Frederick Pels
CEO, Frederick Pels
Source: globalnews.ca
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  • Gaia Grow (TSXV:GAIA) has signed a purchase agreement with CannGroup Development worth C$1.65 million
  • Gaia will sell 15,000 kilograms of milled hemp powder to CannGroup, for $110 per kilo
  • The milled hemp powder will be processed into CBD oil and distillate
  • Starting in March, Gaia will deliver 1,000 kilograms of powder each week, until CannGroup has all 15,000 kilograms
  • Gaia Grow’s share price is up 33.33 per cent, currently trading at $0.06 per share

Cannabis company Gaia Grow (TSXV:GAIA) has signed a purchase agreement worth C$1.65 million with CannGroup Development.

Per the purchase agreement, Gaia will sell 15,000 kilograms of milled hemp powder to CannGroup for $110 per kilogram.

Milled hemp powder is the result of grinding down a hemp plant’s CBD-rich components into a powder. As such, the product is the perfect material to fuel the production of CBD oil and distillate.

Gaia is a licenced hemp producer which reaped approximately 4.2 million pounds of hemp biomass in its 2019 harvest. The company has the capacity to mill 1 tonne of hemp biomass into hemp powder per hour.

CannGroup operates a Health Canada licensed extraction facility, and also operates an ethanol extraction lab.

Starting in early March, 2020, Gaia will deliver 1,000 kilograms of the hemp powder to CannGroup once a week. The deliveries will continue until CannGroup has all 15,000 kilograms. 

Both companies anticipate that the agreement will result in an increased output and improved revenue in the coming months.

Gaia CEO, Frederick Pels, commented on the purchase agreement. “The alignment we have with CannGroup is absolutely incredible. Our mutual success, product quality, and organic growth are the fundamental goals we share, and I look forward to a long standing and successful relationship with CannGroup. 

“We are so excited with all opportunities to come in the near future as we continue to innovate and grow together. This is just the beginning,” he said.

Gaia’s share price is up 33.33 per cent, and is currently trading at $0.06 per share at 11:04am EST.

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