United Cannabis Corporation has entered into a Joint Venture with Blue Water Green Bridge, LLC, a South Carolina company, to establish an industrial hemp processing plant. The new venture is named Magnolia Botanicals LLC,.
Initially, Magnolia will provide industrial hemp extraction services for South Carolina farmers working under the 2018 Federal Farm Bill and the South Carolina Department of Agriculture’s Industrial Hemp Pilot Program. The Company expects to expand the services offered to include purification, testing and processing, as well as packaging, fulfillment, and secure storage capabilities. Longer term, Magnolia intends to cultivate and grow industrial hemp in the State.
South Carolina’s Industrial Hemp Pilot Program, which is administered by the State’s Department of Agriculture, issued only twenty permits for the 2017/2018 season first year and has selected 40 growers to participate in the 2018/2019 season.
Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, ”The Company’s successful expansion into Colorado’s industrial hemp sector was the impetus for us to seek other regions where market demand was not being met and our expertise could provide value. Working in conjunction with Blue Water not only gives us a foothold in the South East’s burgeoning industrial hemp market, it also provides us with a strong financial partner.”
Richard Mudd, Managing Member of Blue Water Green Bridge, went on to say, ”South Carolina’s industrial hemp market is still in the nascent stages; with one growing season on the books, the Department of Agriculture has doubled the number of licenses granted this year. Blue Water’s regional resources combined with United Cannabis’ expertise give Magnolia a real competitive advantage in South Carolina. We are on track to have a state-of-the-art processing facility up and running in time for this year’s harvest, positioning us to establish Magnolia as a leader in this market.”
United Cannabis Corporation is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. The Company has long advocated the application of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients around the world. Most of the Company’s products are patent protected first in class medicines with applications to a global market. United Cannabis trades on the OTCQB under the symbol CNAB.