Highland Natural Resources, an oil company listed in London, is all set to enter the cannabis industry after making a surprising discovery.
In an exclusive interview with Yahoo!, a spokesperson from HNR.L said that the company had discovered a naturally-occurring source of Nitrogen in the summer of 2018. However, later it was found that the gas mixture had some quantity of hydrogen as well, which resulted in the mixture being a good organic fertilizer.
Highlands then started selling this mixture to an organic cannabis company based in Colorado. Soon, it was discovered that the gas was capable of catalyzing the growth of cannabis plants. The spokesperson added that the gas mixture increased the height, plant size, root diameter, and flower count by up to 30 percent, way more than expectations.
Owing to the overwhelming results, the company has now moved into the cannabis industry by raising around $1.69 million to establish an organic, vertically integrated cannabidiol (CBD) operation in Colorado, through a newly established and wholly-owned Highlands subsidiary named Zoetic Organics.
This operation facility will allow HNR.L to grow, process and convert cannabis into end-user products, which will be sold via the latter subsidiary. The company is looking to sell a number of products ranging from CBD-infused chewing pouches and pre-rolled smokables to organic hemp oil and tinctures, through both wholesale and retail outlets.
The London-listed oil producer aims to harvest its first 10,000 hemp plants by mid-2019 and approximately 40,000 hemp plants/annum in a 33,000 square feet greenhouse.
“Highlands will target a yield of 12 grams of CBD per indoor plant and 30 grams of CBD per outdoor plant. Estimated wholesale prices are $3 per gram although the Board believes sales made direct to retail channels could be at a premium of over five times this,” the spokesperson was quoted as saying.