A California company that sells coffee to cruise lines and grocery stores says two of its subsidiaries have entered into an agreement with Nicaraguan cooperative to buy a farm for a hemp grow and processing facility.
Youngevity International of Chula Vista announced Tuesday that CLR Roasters LLC and Khrysos Industries, Inc., its two subsidiaries, have an agreement to H&H Coffee Group Export Corp and the Nica Hemp Cooperative, Inc. Khrysos makes CBD-infused coffees in Florida.
The agreement calls for Youngevity’s subsidiaries to acquire the 2,200-acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua.
H&H will contribute the farm, worth about $10 million. Construction improvements are estimated to be worth $30,000,000, with the Nica Hemp Coperative providing an estimated $20 million toward the construction of the project.
The U.S.-based companies will initially provide $3,000,000 of extraction equipment for the project.
Pending Nasdaq approval, Youngevity (Nasdaq: YGYI) and its partners intend to issue $1.5 million shares of YGYI common stock to Nica Hemp Cooperative for a 50% stake in the land and the improvements.
The U.S. partners will have a 75% controlling stake in the hemp grow and oil extraction business.