NEW YORK (MainStreet) Creative Edge Nutrition (FITX), company that makes of work-out supplement Aminoplex, acquired Hemp Technologies for $15 million shares and a $4 million cash commitment over two years.
"Once we complete restructuring of Hemp Technologies we will apply for a license to grow hemp," said Bill Chaaban, president of Creative Edge Nutrition. "The seeds are going to be an issue, because the U.S. doesn't have a seed bank. There are seed banks in Canada and the Netherlands, but we have to import the seeds and pick the ones that will grow in the climate and soil that make up the U.S."
Creative Edge Nutrition's acquisition of Hemp Technologies includes five-year employment contracts for Gregory Flavall and Anndrea Hermann, who is a licensed THC inspector.
"Anndrea is one of the world's foremost experts on hemp and cannabis," Chaaban said. "She will assist us with seeding and many other issues."
Hermann was appointed not only president of Hemp Technologies but also chief scientific officer of Creative Edge Nutrition.
"We intend to utilize hemp for the extraction of CBDs where allowed by law," Chaaban explained.
Known as cannabidiols, CBDs are one of at least sixty active cannabinoids in the marijuana plant that includes tetrahydrocannabinol (THC).
"The cannabis industry is just starting too boom so it makes sense that small players are merging in an attempt to capture the lion's share of this upcoming sector," said Timothy Sykes, entrepreneur and penny stock expert. "Who will actually succeed is anyone's guess but the companies with the most cash and innovative approaches have better odds of success."
CEN Biotech, a subsidiary of Creative Edge Nutrition, is involved in launching a super grow facility in Canada where the law does not allow hemp to grow near cannabis.
"The cross pollination of the male hemp plants will ruin the female cannabis plant," said Chaaban. "So, we've acquired land around the super grow facility in Canada to farm hemp." If everything unfolds as planned, Chabaan won't have to grow hemp in Canada at all because it takes less than 30 days to get a license in the U.S. now that President Obama signed into law a $500 billion farm bill, which prevents federal officials from prosecuting farmers and researchers who grow hemp.
"Hemp has a black eye, because of its relation to cannabis," Chaaban told Mainstreet.
"Despite its positive uses, law enforcement doesn't differentiate between cannabis and hemp because they come from the same family even though the plants don't look alike," Chaaban said.
As clothing material, hemp is rugged, durable and made of natural fiber.
"Anything made with hemp is superior, because it's natural but it's also more expensive than man made material such as polyester," said Chaaban.
In other words, you won't find hemp clothing in Walmart stores.
"They're for people who live a natural lifestyle and want to stay away from synthetic materials because the chemicals can leach into your skin," Chaaban said.
--Written by Juliette Fairley for MainStreet