- Kentucky hemp companies GenCanna and Vertical Wellness are expanding on their partnership with a new agreement to swap technology.
- GenCanna will deliver over 10 million pounds of hemp biomass to Vertical Wellness for processing. Vertical Wellness will also acquire industrial hemp drying technology from GenCanna.
- After the deal and its term are complete, Vertical estimates to have the ability to dry one million pounds of hemp per week.
GenCanna and Vertical Wellness, two large-scale hemp companies from Kentucky, have expanded upon their alliance by agreeing to a toll processing and drying technology swap, also known as a biomass tolling agreement.
GenCanna Acquisition Corp, formerly known as GenCanna Global, is a seed-to-sale hemp and CBD company while Vertical Wellness is a vertically integrated hemp health and wellness firm. The two companies announced their agreement in a news release on Friday.
“We are excited to further our existing relationship with Vertical Wellness, which has proven to be a strong processing partner for our business and shares GenCanna’s values of compliance and quality,” stated Andrew Barnett, CEO of GenCanna.
“We look forward to continuing successful collaboration as we leverage Vertical Wellness’s drying capabilities to ramp production of first-rate hemp-derived CBD products.”
The new deal states that GenCanna will be delivering over 10 million pounds of hemp biomass that is grown by its own farmers to Vertical Wellness to be processed. Vertical Wellness will also be acquiring GenCanna’s industrial hemp drying technology.
CEO and Chairman of Vertical Wellness, Smoke Wallin, also commented on the partnership expansion, stating:
“We couldn’t be more pleased to build upon our relationship with GenCanna. One of our key strategic focuses for 2020 and beyond has been to be a resource for the entire hemp industry, by utilizing our operational know-how and scale infrastructure. Vertical Wellness is on track to process a record amount of high-quality hemp in 2020 when we combine the GenCanna project with other regional farmers and our own biomass.”
Vertical Wellness’ campus is already home to a large Vulcan dryer that can dry upwards of eight tons of hemp per hour. The company will soon be acquiring a second dryer.
Vertical estimates that, with the additional dryer combined with GenCanna’s drying technology, they will be able to establish a drying capacity of roughly one million pounds per week.
“Their vision and ability to implement at every segment of the hemp supply chain supports the industry in so many constructive ways,” stated Vertical Wellness Advisory Board member. “The team is delighted to support GenCanna’s respected large-scale business.”