Digital Development Partners, Inc. announced its plans to develop a processing plant to create fake meat products out of hemp. Doing business under its Black Bird American Hemp brand, the company is looking to find a suitable location for its future plant and start producing hemp products.
The company plans to take advantage of “Opportunity Zones” in Montana. They are currently evaluating properties in each of these tax incentivized zones to pick the best location. By end of October, the company hopes to have a location scouted out.
“By building our plant within an Opportunity Zone, we are confident that we will be able to fund plant construction through direct investments of private equity, due to the extremely beneficial tax benefits that would be available to certain investors, or by other available means, including through the use of industrial bonds or traditional financing sources,” President of DGDM, Fabian Deneault, told the press.
Opportunity Zones are communities in the U.S. that are economically distressed and have been struggling for some time. These areas are identified by the census before being nominated by the state’s governor and then approved by the U.S. Secretary of Treasury. There are currently 8,764 of these zones throughout the country. To help incentivize investors to move to places that often haven’t seen significant investment in decades, some of these investments get preferential tax treatment.
The tax incentives will allow the company to build its plant without watering down shares held by current stockholders. Using private sources of capital including private equity, bank loans, and industrial revenue bonds will allow the company to grow without giving up as much of the company.
Black Bird already manufactures and sells hemp and CBD products like oils, gummies, pet treats, and personal care products.