Ecofibre Limited recently completed a $42 million purchase of manufacturing facilities in North Carolina. The businesses will be used to support the release of the company’s Hemp Black line of facemasks.
One of the businesses bought was TexInnovate. The deal consisted of a $10.5 million cash payment, $10.5 million in Ecofibre shares, and a promised payout of up to $21 million over the next five years if TexInnovate can produce at least $6 million in gross earnings for two years straight.
“The acquisition completes our first strategic priority, and the team is now focused on completing integration and growing the combined business,” Eric Wang, CEO of Ecofibre, announced in a statement.
Hemp Black will start sending facemasks across the U.S. to address the increased demand for the products amid the pandemic.
“Hemp Black’s vision is to improve our global environment by embedding its sustainable technology in a wide range of industries, including high-performance apparel, personal protection, military, healthcare, and travel,” Wang told the press. “This is a bold vision, but we have a strong conviction that Hemp Black’s value proposition resonates across industries and geographies.”
The company is hoping that education will bridge the gaps in their knowledge and experience. Ecofibre plans to leverage the growing passion of a new generation to bring hemp into the mainstream.
“I am personally very excited at the breadth of opportunities that will benefit my existing commercial relationships as well as the healthcare relationships of Ecofibre,” he said. “Our team looks forward to an exciting long-term journey that will, in my view, be a game-changer to an industry that I have been a part of for over 40 years. I believe this education process will result in hemp leading one of the most important shifts in product sustainability as the world looks to find alternatives to heavy and precious metals, chemicals, and agricultural inputs that require significant amounts of water, herbicides, and pesticides.”