S. Cottonwood Rd Sunizona AZ 85625
Southwest Hemp, Inc is excited to start its Capital raise to complete the infrastructure improvements to its 1,000+ acre organic Hemp Farm and to build the Regional CBD Extraction Lab in Southeast Arizona.
Southwest Hemp, Inc was issued an Industrial Hemp Processors License by the AZ Department of Agriculture. License # AZ-P190254. In addition, Stephen Christian, CEO of Southwest Hemp, Inc and Southwest Hemp, Inc, as a corporation passed the SEC/FINRA background check.
The company plans to build the CBD lab in the fall of 2019 and to buy hemp biomass from Colorado and Oregon and extract CBD in the new lab which is expected to provide a revenue stream the first year. The second-year the company plans to farm a 100-acre parcel of hemp and extract CBD and will continue to buy biomass from Colorado and Oregon. We will promote a regional CBD extraction service for the many farmers in SE Arizona who most likely switch from corn and alfalfa to hemp for CBD oil. The third-year the company plans to farm 500 to 1000 acres. We plan to continue to buy biomass from Colorado and Oregon to extract the CBD and plan to continue to provide a regional CBD extraction service for neighboring farmers. The fourth-year the company plans to scale to 1,700 acres and continue to provide a service as a regional CBD extraction service and buy biomass from Colorado/Oregon until hemp production from our farm and neighboring farms are enough to operate the CBD lab 12 months a year.
Stephen Christian is the founder of Southwest Hemp, Inc. He has owned the land planned for the hemp farm since 2006 and is a successful pecan farmer. The general farming knowledge and experience learned from being a successful pecan farmer in southeast AZ, has helped Stephen in his quest to understand the hemp business. In addition, many of the same tasks that will be required for hemp farming were required for pecan farming. Tasks such as clearing the land, taking soil samples, adding amendments to the soil, drilling water wells, designing and laying an irrigation system, buying various farm implements and tools and many more. Since October 2017, when it became clear Hemp farming would soon be legalized in Arizona, Stephen has conducted a lengthy period of due diligence in hemp farming and CBD extraction. Initially, Stephen often spoke to many hemp farmers and CBD lab owners in Kentucky, Tennessee, Colorado, Oregon, and Nevada. He has made two trips to Colorado to visit farmers, seedling and clone nurseries, extraction and distillation equipment manufactures. In the last 1.5 years, he has gained important and critical knowledge in farming hemp and extracting CBD.
According to a Gallup Poll published August 7, 2019, 14% of Americans say they use CBD products. The following is an excerpt from the article. “One in seven Americans say they personally use CBD based products which have proliferated since last year’s passage of the federal law legalizing this hemp form of cannabis. Younger Americans and those in the Western US are most likely to report using these products, which are widely touted for their therapeutic benefits without any psychoactive effects because they contain a low level of THC. Since the 2018 Farm Act legalizing the cultivation of hemp was signed into law last December, many CBD products have hit the market but the large majority of Americans are not yet familiar with them or don’t use them. Those who say they use them to do so primarily to treat pain, anxiety, and sleeplessness. As the FDA begins to regulate CBD products and when they become more mainstream, older Americans may stand to benefit the most from them for the treatment of the aches and pains that come with age.” (1)
The latest CBD market forecast dated May 19, 2109, by leading cannabis researchers BDS Analytics and Arcview Market Research, projects that the collective market for CBD sales in the U.S. will surpass $20 billion by 2024. Most products being sold in the general market today are in untracked channels of distribution. Yet even with this problem, it is expected that many categories (food, candy, beverages, beauty, skin, etc.) will generate substantial volume across many channels of distribution. (2)
Bethany Gomez, Director of Research for Brightfield Group, in an interview with Green Entrepreneur dated September 12, 2018 states. “Despite all the hurdles, [the] legal gray area, and restrictions on distribution, marketing, and even credit card payments, CBD has grown by more than 80 percent over the past year.
“In the absence of large companies and large-scale marketing campaigns, this industry has emerged due almost exclusively to word of mouth advertising,” she added. “Nearly half (47 percent) of all CBD consumers first heard about the product from friends or family, while less than 10 percent heard about it from the news or traditional advertising.” She goes on to state, “New consumers are being greeted by an explosion of new product innovations that can be purchased through many different types of retailers. When we researched the market a year ago, it was tinctured being sold either online or through smoke shops. Now we're seeing such a wide range of new products ranging from CBD face masks and soaps to pre-rolled CBD joints, bug repellent, to pet treats, fruit roll-ups, and lemon water. Natural food stores can't keep it on the shelves and CBD can now be found at massage spas, gyms, and through an army of direct sellers. But where the large-scale growth will come over the next five years is through mass-market retailers." (3)
In an article in Venture Beat dated March 29, 2019, they write, "One of the most notable characteristics of the CBD market is that CBD-infused products constitute one of the widest arrays of products of any herbal supplement. CBD can now be found in tinctures and CBD oils, candies, vape pens, baked goods, capsules and tablets, beverages, skincare and pain creams, cosmetics, bath bombs, patches, sprays, sex lubes tampons and suppositories."
"Although these products are already being sold online and in boutiques nationwide, the only thing keeping CBD from showing up in every Walmart and 7 Eleven in the country is the FDA’s insistence that it is unlawful to add CBD to food products. When and if the FDA does grant CBD GRAS status, CBD sales are likely to leave marijuana sales in the dust and never look back." (4)
To demonstrate how very much discounted our calculated $4,500 per kilo sales price is, below are the prices of T-Free Distillate of six companies/competitors with their web sites and contact information as of August 21, 2019. These are prices for the US grown hemp and US processed THC Free Distillate. Compare the prices below to our steeply discounted sales prices in the Five-Year Income Pro-Forma.
Shi Farms https://www.shifarms.com/ 833-429-0630 prices not listed at site. Called for prices. $9000 for 1k. $8,000 per kilo for 10
Rad Extraction https://www.radextraction.com/ 719-648-7616. Prices not listed. Called
for prices. $13,300 one kilo. $12,600 for 10.
Blue Forest Farms https://blueforestfarms.com/ 303-962-8250 Prices not listed. Called for
prices. $10,500 for one kilo. $8,000 for 10
Rhizo Science.com https://rhizosciences.com/cbd-distillate/ $11,000 for one. $8,000 per
Kilo. If buying10-99 kilos
Industrial hemp farms https://industrialhempfarms.com/full-spectrum-cbd-distillate-oil/
$11,000 for one kilo of THC free distillate
Mile High Labs https://www.milehighlabs.com/products/
Prices not listed. Email for prices. $10,000 each for 1-5 kilos, $9,500 each for 6-10 kilos
At Southwest Hemp, Inc we believe we are well-positioned to take advantage of the huge growth in CBD sales, both domestically and internationally.
Southwest Hemp, Inc will wholesale its CBD Distillate to CBD retailers and other general retailers. The company will begin its process of branding and a retail line beginning the third year of operation, once it has 700 acres being farmed.
Expected Revenue Streams
We have three planned revenue streams. For More Detail See Five-Year Income Pro-Forma.
Use of funds percentages are 74% Capital Improvements, 16% Operating Costs, 8% Key Hires, 1% Marketing and Branding, 1% Research and Development. Detailed use of funds is available in the Five-Year Projected Income Statement.
With a 5-year time frame for the $6,500,000 investment, I truly believe the ROI will be exponentially larger than any other investment available today whether it is cryptocurrency, IT, FT, or RE.
