A Canadian oil-and-gas company expanding into hemp extraction has acquired a Canadian hemp company in an all-stock deal worth CA$20 million ($14.4 million).
Those assets include various licenses, including an industrial hemp license to cultivate the plant and a pending license to process and sell it. HTC will also acquire a drying facility in Lajord, Saskatchewan, and the equipment there.
The agreement, signed May 15, will make KF Hemp a wholly owned subsidiary of HTC.
KF Hemp is among the largest growers of hemp for cannabinoid biomass in North America, according to a news release.
The deal also includes 5,000 production acres from 2019 and 25,000 acres in future years.
HTC Extraction Systems bought a California hemp extractor, Kase Farma, in January.
HTC trades on the TSX Venture Exchange as HTC.