VANCOUVER, British Columbia, June 11, 2019 (GLOBE NEWSWIRE) — Segra International Corp. (“Segra” or the “Company”), an agriculture technology company, is pleased to announce that it will soon begin operations in the United States, providing plant tissue culture services to growers in the emerging federally legal U.S. hemp market. This new operation represents the Company’s premiere entry into the U.S. hemp space, and will be developed concurrently with the Company’s Canadian cannabis strategy.
Following passage of the Agricultural Improvement Act of 2018, hemp was removed from the U.S. Drug Enforcement Agency’s Schedule I drug listing, and is now considered an “agricultural commodity.” Many new U.S. hemp operations are focused on the production of cannabidiol (CBD), a high-value compound found in cannabis plants. However, compliance with U.S. federal law requires that tetrahydrocannabinol (THC) levels in hemp crops remain below 0.3%. Segra, along with its genetics partners, intends to offer U.S. hemp growers access to premium and exclusive high-CBD, low-THC cultivars.
“The legalization of hemp on a federal level in the United States has opened up an entirely new and highly lucrative market to our company,” said Ian Davidson, Segra’s Chief Business Development Officer. “Our primary focus in this emerging market is the production of high-CBD plantlets utilizing our proprietary plant tissue culture technology. The standardised nature of Segra’s tissue culture nursery stock will provide substantial increased value and risk mitigation for hemp growers; we look forward to supporting the propagation needs of hemp farmers across the U.S. in the near future.”
The Company has leased a 1,900 sq. ft. laboratory facility in Portland, Oregon, and has applied for the state’s industrial hemp license. It is anticipated that Segra’s U.S. hemp operations will commence later this year. In a recent analysis conducted by investment bank Cowen & Co., the potential U.S. market for CBD products is estimated to reach $16 billion by 2025.
About Segra International
Segra is an agriculture technology company offering innovative services that accelerate the advancement of the cannabis industry to better serve society. The Company’s plant tissue culture and genomics technologies, coupled with a vast business ecosystem, empower its clients to drive financial performance and mitigate risk, while exploring the next frontiers of optimized cultivation practices for the rapidly evolving medical, recreational, and hemp markets. Segra is developing industrial-scale laboratories to produce disease-free, robust, and DNA fingerprinted cannabis plantlets for licensed producers globally. To support this vision, Segra has assembled a world-class team of specialists in the fields of agronomy, molecular genetics, plant tissue culture, and regulatory compliance. Segra currently has agreements with many leading global cannabis producers, including the Canadian licensed producers HEXO Corp., Agripharm Corp., and The Supreme Cannabis Company Inc.
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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