Youngevity Completes Joint Venture to Acquire Nicaraguan Hemp Farm

Youngevity International’s wholly owned subsidiaries, CLR Roasters and Khrysos Industries, have entered into an agreement with H&H Coffee Group Export Corp. and The Nica Hemp Cooperative to acquire Chaguitillo Farms, 2,200 acres in Sebaco-Matagalpa, Nicaragua. Plans include improvements to the land such as electricity and 45,000 square feet used for buildings for extraction, drying and storage of hemp, as well as greenhouse space. Total estimated cost for land and improvements is approximately $30 million, with H&H contributing the farm, valued at about $10 million, and all capital toward improvements construction, about $20 million, provided by Nica Hemp Cooperative. The U.S. partners will contribute $3 million worth of extraction equipment as well as its hemp business expertise, with the intent to issue 1.5 million shares of YGYI common stock to the Nica Hemp Cooperative in exchange for a 50 percent stake in land and improvements. The U.S. partners also intend to issue 5 million warrants with a strike price of $1.50 per share to the Nica Hemp Cooperative, with the agreement to receive a 75 percent controlling stake in the hemp grow and oil extraction business.