NEW YORK, July 29, 2019 /PRNewswire/ -- PRESS RELEASE -- Grove Group Management, a next-generation cannabis industry investment and management company, has announced a major investment in two hemp and CBD manufacturing facilities. According to Hemp Business Journal, the hemp industry is predicted to grow to a $1.9 billion dollar market by 2022 with an estimated 5-year CAGR of 14.4 percent (2018-2022).
This investment will add $12 million in value to the company's portfolio and makes Grove Group Management the single largest stakeholder for both facilities. In addition it will further automate the production process in both locations and add 72,000 square feet of hemp and CBD manufacturing space.
"The serious interest shown by Fortune 500 companies in beauty, pharmaceutical, pet care and other uses of hemp and CBD makes this an exciting and strategic space in which to invest," said Grove Group Management's co-founder and CEO, Kevin Shin. "This is a forward-thinking investment in one of the areas in the cannabis space. The timing is right, for us and for our new manufacturing partners."
This investment announcement involves two, currently underutilized processing and CBD production facilities:
- A 38,000-square-foot factory on 19 acres in Michigan, in which only 8,000 square feet is currently being used to manufacture CBD products.
- A 46,000-square-foot facility in Wisconsin in which just 4,000 square feet is currently in use.
"We will bring these facilities up to pharmaceutical standard, to serve as an example of how hemp processing and CBD production should be done," said Shin. "From production levels to product quality to the cleanliness and usage of each factory, these facilities will be top-of-the-line and best positioned to capitalize on the massive growth the Farm Bill has made in the cannabis industry."
In addition to their investments in equipment and technology, this brings each of the recipients the benefit of Grove Group's experienced, full-service management team.
"The team at Grove Group Management brings sophisticated financing, marketing and sales execution that gives us a strong advantage. Big players are coming into the CBD space and this will keep us ahead of the competition," said Romy Sembiring, CEO of Superior BioScience, and expert in cannabinoid research and development.
Every asset needed to launch, license and scale a company in the fast-moving cannabis industry resides under the management company's roof. Their proven team of former C-suite executives run the gamut from finance, legal and compliance to product development, marketing, operations and retail.
"De-scheduling since the Farm Bill has allowed the opportunity in hemp and CBD to grow exponentially, and we are in a great position to deliver on the branding and connections that Grove Group can provide to these facilities as their market expands," said Tiki Barber, Grove Group Management co-founder and former NFL great. "We not only scale the operation but also provide the sales and branding expertise needed to make these companies industry leaders in hemp and CBD production."
Grove Group continues to seek research and development partners to help develop top quality products in line with the evolution of cannabis regulation and the market growth anticipated as a result.