Hempalta starts wind-up of hemp biz; 4 directors quit

Executive Summary

• Hempalta Corp. has commenced an orderly wind-up of its hemp processing operations due to an inability to generate sustainable revenues, slower-than-expected consumer product adoption, and a cautious voluntary carbon market.
• The company is initiating a review of strategic alternatives, including seeking alternative financing, a sale, merger, or other business combination.
• Significant management changes have occurred, with four directors and the corporate secretary resigning, while the CEO and CFO remain to manage the wind-up and strategic review.

Key Details

• Operational Wind-Down: The company is winding down hemp processing operations, including hemp-based consumer products, hurd for hempcrete, and hemp biochar.
• Financial & Operational Challenges: The processing operation was capital-intensive; the previously announced equipment sale did not close, leaving the company without sufficient resources to continue.
• Carbon Credit Program: Hempalta previously verified nearly 30,000 tons of carbon removal via the Hemp Carbon Standard across a global network of farms.
• Strategic Alternatives: The company will explore options such as alternative financing, sale, merger, or other business combinations.
• Management Resignations:
  • Adrian Stokes (Director)
  • Russell Wilson (Director)
  • Craig Steinberg (Director)
  • Dan Balaban (Director)
  • Michael Ginevsky (Corporate Secretary)
• Remaining Leadership:
  • Darren Bondar (CEO and Director) will continue to manage the equipment sale process and marketing of carbon credits.
  • Candace Ryan (CFO) will remain to support continuing financial reporting and compliance requirements.

Notable Quotes

• "Despite these milestones, the company has been unable to generate sustainable revenues or attract the level of capital required to continue."
• "The processing operation proved capital-intensive, consumer product adoption was slower than required and the voluntary carbon market developed more cautiously than anticipated."