Vancouver-based Chemistree Technology Inc. (CSE:CHM) just made a big announcement in regards to its presence in the California cannabis industry. Earlier this morning, the cannabis company announced that it has entered into a strategic collaboration with a Humboldt County-based cannabis processing company. The processing company is headquartered in Arcata, California.
Chemistree and Its Processing Company
Chemistree agreed to loan the Humboldt processing company $450,000 USD, and the two parties will also be negotiating an additional line of credit for working capital. Currently, the Humboldt processing company holds a 'Type 6: Non Volatile Solvent Extraction' license from the State of California. Thanks to this license, the company can produce various cannabis products on behalf of cannabis cultivators and processors throughout Northern California.
Karl Kottmeier, Chemistree's President, said:
"This is a great advancement for Chemistree. Not only is the Processor a highly regarded service provider in the Humboldt cannabis industry, with deep relationships with local cultivators, we believe they are also primed for growth in their sector. We believe that Chemistree can provide capital and management depth to rapidly expand the Processor's business, both in the local Humboldt area, across the state of California, and ultimately into new jurisdictions across the United States where legal cannabis processing and product development is in formative stages."
Chemistree Technology operates as an investment company that focusses specifically on the cannabis sector in the US and internationally. Its corporate strategy is centered around acquiring and developing vertically integrated cannabis assets. Chemistree currently owns assets in Washington State, California, and Canada. The Vancouver-based investment firm changed its name and company direction back in August of 2017 from mining to cannabis.
CHM Stock Movement
Currently, CHM is trading even on the Canadian Stock Exchange (CSE) but has rebounded after a red morning. The Canadian cannabis stock closed the market yesterday at $0.45 a share and opened this morning at $0.43 a share.
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