A major Canadian oil-and-gas exploration company has announced that it will expand its interest in the hemp-based biomass and extraction sector.
Officials with HTC Extraction Systems of Regina, Saskatchewan, said they have acquired KF Hemp, a Regina-based firm and one of the largest growers of hemp in North America. The deal was reported to be worth $20 million in Canadian dollars. That’s about $14.4 million USD. KF Hemp will now become a wholly-owned subsidiary of HTC.
Included in the acquisition for HTC is 5,000 production acres which may expand to as much as 25,000 acres in future years. To support the KF Hemp purchase, HTC said it will also buy a drying facility in Lajord, Saskatchewan.
The purchase of KF Hemp follows HTC’s acquisition of a California-based firm, Kase Farma, Inc. The latter is a hemp extraction company. HTC will also get the intellectual property and licensing of Kase Farma’s high-tech extraction process.
KF Hemp is a division of a venerable Canadian company with a history dating to 1899. It was established as Kambeitz Farms in that year by German immigrants who hailed from Odesa, Ukraine. Kambeitz Farms today is a 60,000-acre operation that grows an array of products in addition to hemp, including grains, oilseeds and pulses.
Both HTC and KF Hemp grow hemp to make CBD biomass. CBD biomass refers to the hemp plant as a whole and the many products that can be derived from it. That includes foods, oils, fibers and energy.
In addition to operating in the gas-and-oil energy sector, HTC Extraction Systems is a biomass extraction and formulation company. It is involved in cutting-edge research that creates technologies used to extract biomass, liquids and gas. HTC also makes ethanol and ethanol-based solvents.
HTC Extraction System was founded in 1996 and has since become a publicly-traded company. Some of its leading purification technologies include the trademarked LCDesign. This is a cutting-egde design for biomass extraction systems that also handle modular gas and liquids. HTC also designed PDO Engine. It’s a software that uses specially designed algorithms to create accurate models for the simulation of biomass extraction.
Mike Reynolds is CEO of HTC Extraction Systems. He said he is “thrilled and delighted” by the KF Hemp deal and what it promises for the future of his company.