CALGARY,
AB, Sept. 7, 2022 /CNW/ - The Hempshire
Group, Inc. (TSXV: HMPG) ("Hempshire" or
the "Company"), a California-based non-tobacco and non-nicotine
smokable alternatives company that formulates and sells its own
proprietary brand of cannabidiol hemp smokes
("CBD Hemp
Smokes") under the
MOUNTAIN® Smokes
label, announces receipt of regulatory approval to import its
products into the European Union
("EU"),
and the designation of an exclusive European master
distributor.
Belgian
Approval
Hempshire is pleased to announce it has received notice
from the Federal Public Health Food Safety and Environment Service
of Belgium, an EU member nation,
that
MOUNTAIN® Smokes
have been found to conform with European Union Common Entry
Gate (EU-CEG) regulations, including regulations governing tobacco
and smokable products and the pertinent regulations setting maximum
THC levels at under 0.2%. The notice allows
MOUNTAIN® Smokes
to be legally imported into, and commercially sold in, the
country.
Access to the European Union
(EU)
As per EU member state reciprocity for the inter-member
commercialization of goods, the Belgian authorization allows
Hempshire to pursue commercialization and sales across the EU – the
largest 'single market' in the
world1 – provided it complies with individual
member nations' specific 'local'
regulations, such as packaging in the local language, and
inclusion of any locally-required warning labels.
The Belgian authorization and resulting EU reciprocity is
an important achievement for Hempshire and allows the Company to
pursue the European market which has an average smoking rate of
28.7%2, 31%2 higher than the per
capita smoking rate in the United
States. In population terms, the latest available statistics
show that 30.8 million American adults smoke tobacco cigarettes,
compared with approximately 112 million adult smokers in the EU-28
countries3.
Exclusive European Master
Distributor
To accelerate growth across Europe, Hempshire is also pleased to announce
that it has designated Switzerland-based distributor, Montagnaria
Group AG ("Montagnaria"),
as its exclusive master distributor for Europe, including the 28 member states of the
EU, all non-EU European countries, and including all countries in
the Schengen Area.
Prior to the expanded mandate, Montagnaria was Hempshire's
exclusive distributor in Switzerland, and through initial test orders
placed in 2021, Montagnaria has been successful in the placement of
MOUNTAIN® Smokes
into approximately 400 retail stores and smoke shops throughout
Switzerland. In addition,
Montagnaria was a key partner in assisting Hempshire obtain Belgian
government approval to sell
MOUNTAIN® Smokes
in that country, opening the door to the entire EU.
Montagnaria will also be arranging European warehousing
and fulfillment facilities to facilitate servicing of retailer
accounts, convenience stores and smoke shops across Europe, and will be working closely with
Hempshire to finalize a European-wide sales and distribution
plan.
"We are very pleased to be awarded the
exclusive distributor rights to the
MOUNTAIN® Smokes line
of CBD Hemp Smokes across Europe
and the EU, and we look forward to offering retailers and consumers
beyond Switzerland a very
attractive and compelling smokable alternative. The feedback we
have received over the last year of market testing has been very
positive with regard to product quality, consumer and retailer
interest, and a superior smoking
experience," stated Montagnaria
Founder and CEO, Patrick
Glausser.
Hempshire President and CEO, Martin Marion, added,
"Over the past year, Montagnaria has proven
themselves to be an important strategic partner. They have worked
with us to research and plan the most effective path to penetrating
the US$261
billion4 tobacco products
market in Europe and have helped
navigate the evolving regulatory landscape for hemp products and
smokable alternatives in Europe
and the EU. We are confident that Montagnaria will be instrumental
in helping
MOUNTAIN® Smokes
create significant brand awareness, on-shelf distribution,
and sales demand in this high-volume
market."
About
Hempshire
Incorporated in 2019, The Hempshire Group, Inc. formulates
and markets its own proprietary brands under the
MOUNTAIN® Smokes label with <0.3%
THC, and MOUNTAIN® Zeros label with
non-detectible, <0.0001% THC. These labels are offered in
Natural, Pineapple Squeeze™ and Mint Squeeze™ flavors.
MOUNTAIN® Smokes look, feel, burn,
and are packaged like tobacco cigarettes, but without the harmful
effects and addictive properties of tobacco and nicotine, and
without additives or chemical preservatives. Hempshire also offers
private white-labeling services and contract manufacturing
services, through its partners, for non-owned CBD Hemp Smoke brands
in the United States and
internationally.
Information about the Company's
MOUNTAIN® Smokes line of CBD Hemp
Smokes can be found at the Company's ecommerce website at
https://mountainsmokes.com.
Reader
Advisory
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements
and forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly, and without
limitation, this news release contains forward-looking statements
and information concerning: Hempshire's business, strategies,
expectations, planned operations and future actions; Hempshire's
intention and ability to grow its business, operations and product
offerings through ecommerce, B2B sales and physical retailers,
including establishing brand awareness in the US and
internationally and developing white labeling and contract
manufacturing collaborations; future sales in the EU; and
Hempshire's distributor relationship with
Montagnaria.
The forward-looking statements and information are
based on certain key expectations and assumptions made by
Hempshire, including expectations and assumptions concerning: the
securities markets and general business and economic conditions,
including the ongoing impact of COVID-19; the future operations of,
and transactions completed by, Hempshire, including its ability to
successfully implement its growth strategies and business plan;
ongoing ability to conduct business in the regulatory environments
in which Hempshire operates and may operate in the future; the
ability of the Company to obtain and maintain suitable distributor
partners and other strategic relationships; and applicable laws not
changing in a manner that is unfavorable to Hempshire. Readers are
cautioned that the foregoing list is not exhaustive of all factors
and assumptions which have been used.
Although Hempshire believes that the expectations and
assumptions on which such forward-looking statements and
information are based are reasonable, undue reliance should not be
placed on the forward-looking statements and information because
Hempshire can give no assurance that they will prove to be correct.
By its nature, such forward-looking information is subject to
inherent risks and uncertainties, which could cause the actual
results and expectations to differ materially from the anticipated
results or expectations expressed. Without limitation, these risks
and uncertainties include: risks associated with the cannabis or
hemp industries in general; the size of the emerging industrial
hemp market; constraints on marketing products; risks inherent in
the agricultural business; failure to benefit
from partnerships; actions and initiatives of federal, state and
provincial governments and changes to government policies and the
execution and impact of these actions, initiatives and policies;
Hempshire's interpretation of and changes to federal and state laws
pertaining to hemp; incorrect interpretation of the United States' Agricultural Improvement
Act of 2018; international regulatory risks; uncertainty caused by
potential changes to regulatory framework; regulatory approval and
permits; environmental, health and safety laws; anti-money
laundering laws and regulations; banking matters; ability to access
public and private capital and banking services; denial of
deductibility of certain expenses; liability for actions of
employees, contractors and consultants; product viability; accuracy
of quality control systems; product recalls, product liability and
product returns; positive tests for THC or banned substances;
supply risk; reliance on third party suppliers, service providers
and distributors; failure of counter-parties to perform contractual
obligations; industry and intra-industry competition; changing
consumer preferences and customer retention; unfavorable publicity
or consumer perception; inability to sustain pricing models;
reliance on key inputs; effectiveness and efficiency of advertising
and promotional expenditures; retention and recruitment of key
officers and employees; inability to renew material leases;
obtaining insurance; management of growth; risks related to
acquiring companies and entering partnerships; infringement on
intellectual property; inability to protect intellectual property;
intellectual property claims; litigation; trade secrets may be
difficult to protect; data security breaches; global economic
uncertainty; geo-political risks; emerging industries; limited
market for securities; financial reporting and public company
obligations; and other factors more fully described from time to
time in the reports and filings made by Hempshire with securities
regulatory authorities.
In addition, Hempshire cautions that current global
uncertainty with respect to the spread of the COVID-19 virus and
its effect on the broader global economy may have a significant
negative effect on Hempshire. While the precise impact of the
COVID-19 virus on Hempshire remains unknown, rapid spread of the
COVID-19 virus may continue to have a material adverse effect on
global economic activity, and may continue to result in volatility
and disruption to global supply chains, operations, mobility of
people and the financial markets, which could affect interest
rates, credit ratings, credit risk, inflation, business, financial
conditions, results of operations and other factors relevant to
Hempshire.
Readers are cautioned that the assumptions used in the
preparation of forward-looking information, although considered
reasonable at the time of preparation, may prove to be imprecise.
Actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward-looking
statements and accordingly there can be no assurance that such
expectations will be realized. Hempshire undertakes no obligation
to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by law. The forward-looking information
contained herein is expressly qualified by this cautionary
statement.
Certain information contained herein has been obtained
from published sources prepared by independent industry analysts
and third-party sources (including industry publications, surveys
and forecasts). While such information is believed to be reliable
for the purposes used herein, Hempshire does not assume any
responsibility for the accuracy of such information. Some of the
sources cited in this news release have not consented to the
inclusion of any data from their reports, nor has Hempshire sought
their consent.
1
|
European Union.
https://european-union.europa.eu/priorities-and-actions/actions-topic/trade_en#:~:text=The%20European%20Union%20is%20one,up%20world%20trade%20as%20well
|
2
|
World Population
Review.
https://worldpopulationreview.com/country-rankings/smoking-rates-by-country
|
3
|
"Who Smokes in Europe?
Data From 12 European Countries in the TackSHS Survey (2017–2018)."
Journal of Epidemiology. February 2021.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7813769/#:~:text=Conclusions,smoking%20habit%2
|
4
|
Statista.
https://www.statista.com/outlook/cmo/tobacco-products/europe
|
SOURCE The Hempshire Group, Inc.