SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) has signed a deal to acquire agricultural property in Tennessee and Kentucky for the cultivation and production of raw hemp biomass.

SOL is a Canadian investment firm focused on cannabis and cannabis-related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces.

SOL Land Acquisition for Hemp Cultivation

SOL has signed a binding letter of intent to acquire three tracts of agricultural property totaling 568 acres of land in Tennessee and Kentucky.

Under the terms of the LOI, the company will acquire a total of 420 acres of agricultural property in McMinn County, Tenn., and 148 acres of agricultural property in Whitley County, Ky.

The company will assign the agricultural property to its hemp/CBD-focused subsidiary Heavenly Rx. The properties will be directly managed by Heavenly portfolio company Blühen Botanicals, a hemp biomass processing and extraction company headquartered in Knoxville, Tenn.

What’s Next

SOL wants to make Heavenly a vertically-integrated player in the hemp and CBD marketplaces. The new properties, according to the company, will allow Heavenly to fulfill future national or international orders using its own farms and supply agreements.

The farm and supply agreements include terms for contract farming in Tennessee and Kentucky at favorable market rates. The first year of contract farming is expected to produce a projected 500,000 lbs. of hemp biomass, which will, in turn, produce hemp-derived CBD products, SOL said in a statement.

“This acquisition will allow Heavenly Rx to expand its leadership role in the U.S. hemp and CBD industry, and Blühen Botanicals’ industry-leading expertise in hemp processing and extraction will prove a valuable asset in the management and cultivation of the properties,” SOL CEO Brady Cobb stated.