Tuesday 01 December 2020

US-based hemp-derived CBD wellness company Virtual Medical International Inc. (OTC: QEBR) has entered into an agreement to purchase North Carolina, US-based industrial hemp cultivation and processing operation FarmShare, LLC for a combination of stock and cash, the company said.

Virtual Medical International's mission is to help consumers improve the health and quality of their lives with an array of high quality, CBD-centric products consistent with a healthy lifestyle.

To that end, Virtual Medical formed 'Amsterdam Café', a wholly owned subsidiary that has taken the first steps to becoming a comprehensive, vertically integrated organization within the CBD sector.

FarmShare manages a 50-acre farm in La Grange, North Carolina, which it is transitioning from tobacco to industrial hemp;and a 5,000 square foot processing facility with 50-gallon/daily capacity.

In the 2020 season, FarmShare harvested 50 acres of hemp and manufactured 258 gallons of CBD oil under the brand name FarmShare QD.

Currently, management expects to plant 75 acres of industrial hemp and produce 400 gallons of CBD oil for the 2021 season.

According to the terms of the agreement, the company will purchase FarmShare for 1.5m shares of common stock, as well as purchasing their existing inventory for USD 866,750 in exchange for a promissory note.

Larson Elmore has also been appointed by the board of directors of the company as the president and CEO replacing Larry Eastland who resigned as president, CEO and secretary and treasurer.

In addition to the transaction with FarmShare, Amsterdam has also entered into working agreements with several companies operating in research, cultivation, processing, production, retail franchises, and e-commerce services as well as marketing and distribution sectors.