May 30, 2019

ColorPoint KY merges with AgTech Scientific; converting to hemp production

The operations have been granted both a Hemp Grower License and Hemp Processor License from the Kentucky Department of Agriculture.

The companies met in 2017 and later formed a business relationship to produce clones beginning with the 2019 outdoor farming season. Additionally, a successful beta test of an indoor hemp grow in late 2018 led to a supply agreement between the companies that included agricultural processing, clones and an indoor grow during the summer season.

ColorPoint had been researching alternative crops for a number of years and after careful consideration approached AgTech Scientific in early 2019 to accelerate their relationship. The parties agreed that it was best to move forward with a merger of operations and to convert the entire greenhouse to premium hemp products.

Indoor Greenhouse & Facility Highlights:

• 1,837,847 sq. ft. greenhouse including 145,182 sq. ft. of production and shipping facilities
• Modern, hi-tech greenhouse with full concrete floors, ebb and flood floor system and operable roof
• Agricultural processing center, drying, stripping and milling of over 100,000 plants per day
• Experienced management team with 113 full-time employees and over 340 workers at peak season
• Fully computerized root to shelf tracking
• Successful test of indoor grown hemp completed
• Able to produce over 200,000 cuttings per day
• Production and indoor grown hemp 24/7 – 365 days per year
• More than 100 tractor trailers with an experienced logistics team

Outdoor Farming

• Projection of 5,000,000+ clones to be planted in 2019 on more than 1,500 acres in central Kentucky. Farms average less than 15 miles from the indoor greenhouse facility
• CBD crop with high yields based on past performance
• Less risk, more opportunity for farmers with guaranteed payouts throughout the season
• Detailed SOP program to ensure compliance and consistency with farm coordinators and managers in the field
• Fleet of more than 100 trailers (many are refrigerated) to ensure timely logistics during the planting and harvest season
• All 2018 Farmers are shareholders of the company

Extraction & Manufacturing Facility

• Ground-breaking was October 2018, projected opening of August 2019
• 50,000 sq. feet, built to GMP standards
• Located in the Bourbon County Business Park on 10 acres of industrial land, 15 minutes from the indoor greenhouse facility
• Ethanol based extraction, original biomass input of 2000 lbs/day scaling up to 14,000 lbs/day in Q2/2020
• Engineered and developed by a team of experienced industry professionals
• Continuous production 24/7 – 365 days a year
• Funded in part with community support by local and state grants

Art VanWingerden, co-president,  stated, “Today is a great day for the company, our employees and our families. The strength of our unique approach and partnership with local farmers, combined with our indoor grow capabilities and our vertical extraction integration, places ColorPoint and AgTech in position to take a leadership role in the emerging U.S. hemp industry.”

Jessica Scott, AgTech Scientific’s director of communications  added, “The announcement today is the big next step for the hemp industry. AgTech and ColorPoint are committed to their people, appreciated by everyone, especially farmers. I have been in the industry for numerous years and I am more excited about the future today than ever before.”