Replant Hemp to Invest to invest $500M to Build Hemp Supply Chain

Replant Hemp Impact Fund

Geoff Whaling: So it’s a $500 million fund, but as we start to raise our first twenty-five, 50 million, we will deploy that money as quickly as we can into the industry and are hoping that we will have, you know, those investments in our first or second quarter.

Geoff Whaling, welcome back to our podcast. How are you doing?

Geoff Whaling: We’re doing really well, Eric, can’t thank you enough for your contribution webinars. Certainly, you are helping us educate farmers and industry, and I’m happy to be here.

So what kind of companies are you looking to invest in?

Geoff Whaling: Yeah, it’s strictly going to be the our hemp industry. Obviously, your listeners will remember that I was involved in a special purpose acquisition company called Collective Growth, where we raised one hundred and fifty million. We scoured the Earth and looked at 200 companies that were in the hemp space, and we realized that all of them could use private capital. The unfortunate thing is that none of them qualified for an investment from a special purpose acquisition company. So we had to pass on that.

Is that more about the rules of a SPAC than anything else or?

Geoff Whaling: Yeah. And and you know, a SPAC is a financial instrument that’s approved by the FCC, and there are very specific rules as to how that blank check company can operate. And certainly, we were really successful and I guess it’s because of our track record. We were offered two hundred and forty two million dollars for a fund that was only looking to raise one hundred and fifty million. But we raised that one hundred and fifty million and the requirements of a SPAC were that we needed to invest 80 percent to one hundred and twenty million dollars in either acquiring one company or combining a number of companies that fit that criteria. We looked at 200 companies that were in the hemp space. We signed kind of investment documents with seven of them looked at how we might be able to bring them to public market. And at the end of the day, most, if not all, of those companies didn’t meet the one most important criteria, which was to have two years worth of audits done okay. And of those companies that had the ability of having audits done, then it was a question of, you know, we could not justify an investment in them to meet the requirement of one hundred and twenty million. So at the end of the day, we were looking at combining five or six companies. And that for anybody that is in the investment space knows is almost impossible task to combine all of them on one day and one accounting system, which is where we would have to happen. So we went looking other places and we ended up doing a deal that brought BMW and Magna International together. Obviously, your listeners know that BMW is one of the big uses of sustainable fiber and hemp. So by doing a deal, as we did, that resulted in a $1.4 billion transaction. We brought BMW Magna together and that cemented that relationship and hopefully we’ll be able to advance hemp in our discussions with them.

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