Talk to any cannabis cultivator for more than a couple minutes and the conversation will ultimately drift toward genetics. While some growers and breeders have a deep understanding of their cultivars’ phenotypes, the vast majority of the information about different strains is nothing more than cannabis industry folklore. We intend to change that…
We intend to become a key supplier of high grade CBD hemp seeds and clones to international farmers entering the market. The quality, durability, performance and certification on hemp seeds and clones will determine their value. Our seeds will ultimately be bio-engineered to grow large, robust crops, durable to a wide range of weather and altitude and contain some of the highest percentages of CBD on the market. Our genetic improvement strategy includes the following objectives:
Minimal male contamination
Premium market quality
Reliable low levels of THC content
Continually develop new improvements to our strains of hemp seeds and clones
We are committed to breeding strains of hemp that can maximize the profitability of the industrial hemp industry.
High yield potential arises from a combination of factors, both agronomic and genetic. Our mission is to develop and supply new crosses and strains for a specific set of objectives. We screen, monitor and study our new populations in carefully chosen, small, isolated environments. This allows us to monitor fluctuations in yield, THC content, CBD content and growth patterns. Maintaining a low THC status is absolutely crucial in the production of industrial hemp. Anything over the legal limit of .3% must be destroyed.
Now that the 2018 Farm Bill has been signed, hemp has been made legal at the Federal level. This new law removes hemp from the Controlled Substances Act (CSA) and paves the way for the development of hemp as an agricultural commodity.
Hemp can be used to produce a myriad of products from super foods to cannabinoid infused cosmetics, personal care products and beverages. In addition, there are a multitude of industrial solutions including textiles, carbon negative building materials, non-toxic bio composites and much more. The law removes many uncertainties from the industry that will enable businesses to obtain the most basic business services that are enjoyed by every other industry, which until now, have been difficult to obtain.
It is expected that this new law will allow companies in the industry to operate more freely than they have been able to up to this point. This long-anticipated Farm Bill allows farmers nationwide to cultivate hemp for any use, including cannabidiol (CBD) and other cannabinoid production. The definition of hemp has been redefined to include any part of the plant including all derivatives, extracts and cannabinoids. This will now mean that hemp-derived cannabidiol (CBD) will no longer fall under the regulatory authority of the CSA.
One of the most important outcomes of the new law is that businesses will soon be able to secure ordinary banking services without fear of having these relationships terminated. The hemp industry has been considered a high-risk industry in the banking community until now. With the passing of the Farm Bill, hemp is well on its way to becoming an agricultural commodity that farmers can generate far greater returns per acre than any other crop. Farmers will also soon be able to obtain crop insurance to manage the risk from natural disasters that could potentially wipe out an entire crop, as well as other forms of insurance not previously available.
It’s also only a matter of time before futures and options are offered on the major commodity exchanges like the Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME). Similarly, a major carbon credit play is on the immediate horizon because of hemp’s ability to sequester more carbon in the shortest period of time, more than almost every other plant on earth. Hemp is among the best plants on earth for the provision of food, clothing, building materials, fuel, and medicine. Hemp could potentially be the most industrially usable biomass produced over the shortest growth cycle, utilizing the least amount of water, nutrients and pesticides, while absorbing the greatest level of carbon.
Hemp is one of the few plants that can be grown commercially almost anywhere in the world. The potential economic stimulus to the United States and Global economy is significant. The Brightfield Group projects a $22 billion hemp industry by 2022, but that only considers the direct impact from hemp, It does not include all of the ancillary industries that provide products and services to the hemp industry that will also see significant economic stimulus. For example, legal services, banking, accounting, investment, real estate, processing and manufacturing equipment makers, engineering, marketing, advertising and technology developers, to name a few.
The hemp industry requires many of the same products and services that every other industry needs to operate, but until now 9 out of 10 companies in any industry would not engage in business with hemp companies because of the Federal legal status. Post Farm Bill projections for the growth of the hemp industry will likely expand significantly more than previously expected, making 2019 a banner year for the hemp industry.
MERGERS & ACQUISITIONS
Identifying and qualifying a potential merger or acquisitions candidate in the hemp industry is one thing but structuring the right deal and at the right price point requires an entirely different set of skill sets. This is where Celexus shines. We have a qualified team of M & A specialists who understand transactional structuring in order to put together the best possible terms and conditions that will satisfy both the buyer and the seller. As a public company, Celexus has the ability to structure an attractive cash and stock component to the negotiations with potential farmland, greenhouses, growers and equipment manufacturers. This will enable us to preserve cash without compromising a potential liquidity event for the seller at their option.
Celexus believes in sustaining growth through acquisitions. In other words, we have the opportunity to grow organically, but through acquisitions we can expedite our growth in a much shorter period of time. With this model we will acquire functioning facilities and equipment that are already built and designed in such a way that the transfer from their current industry into the hemp industry would be seamless or require minimal work. This can be done by acquiring or creating joint venture partners with like kind companies that have already spent years to build and grow their company and facilities.
DUE DILIGENCE TEAM
The success of any acquisition is largely contingent on the ability to perform an in-depth due diligence on the potential acquisition candidate. A thorough due diligence must include the following;
FARMLAND, FACILITIES AND EQUIPMENT
Water rights on the property
Water production capabilities such as wells, pumps, water storage, etc.
Equipment capabilities and functionality on the property
Legal restrictions in the area
Distance from major interstates for shipping
Ease of hiring laborers in the area
Capital required to bring the acquisition to operational status
GENERAL DUE DILIGENCE
Work history background check
Background check on principles
Background check on education
Current Standings with the State
Any IRS liens, debts, etc.
Issuance of shares
Authorized/issued and outstanding
Obligations of the company
Cash in the bank
Having a knowledgeable team to perform such a due diligence requires many years of business, legal, accounting, auditing, farming, manufacturing, agricultural business and related experience to insure a successful acquisition. Celexus prides itself on having such a team in place.
Increased Company Revenue, Profitability and Growth
Celexus has developed unique and proven business models and strategies designed to increase company revenues, profitability and overall share value. Our team’s ability to do this is a result of spending many years reviewing company books, records and identifying weaknesses in a company’s operations.
Before implementing these processes, we will do a complete corporate review of all potential facilities, acquisitions and joint venture proposals to identify if and where the company or facility might be bleeding or hemorrhaging for that matter. Part of our forensic review includes vendor pricing, wasted time on unproductive projects, cost of goods, dormant assets, stolen or misplaced funds, excessive spending, poor software, misuse of company equipment, and many other areas of spending that eat at the bottom line, etc.
After we have identified each one of these areas of concern that are causing such losses, our team of forensic accountants, agricultural experts and other professionals will implement a plan and strategy to resolve each one of these issues, thus increasing the bottom line and profitability of our operations.
We Leverage Industry Experts of our Associate Partners
Celexus principles have historically developed a team of industry professionals in all walks of business both nationally and internationally. This is to include;
Attorneys – In general, most attorneys specialize in certain areas of law i.e. corporate law, securities, bankruptcy law, litigation, real estate law, government compliance, etc.
Accountants – Likewise accountants have areas of expertise as well i.e. forensic accounting, Securities/public companies which requires a PCAOB approved auditing firm, general accounting of books and records, corporate taxes, etc.
Corporate Officers – No matter what industry a company operates within, the duties of an officer are fairly similar. The knowledge and experience within those principle positions is most important whether it be a CEO, President, COO, CFO, etc. to run a company.
Farmers/Hemp Cultivators- These experts play a key role in our operations. Their ability to foresee potential issues with cultivation, establishing processes to expedite and refine our strategy and provide relationships with other farmers and laborers in the area will give us a credible foothold in that areas agricultural community.
Miscellaneous Industry Specialist – Each company will require different areas of expertise that need to be filled based on their specific needs - Software engineers, SEO specialists, multi-media, marketing and advertising, investor relations and public
relations experts, just to name a few.