$30,000,000 Project includes Grow, Extraction, and Winterization Process
San Diego, CA — April 21, 2020 – Youngevity International, Inc. (Nasdaq: YGYI), today announced that its wholly-owned subsidiaries, CLR Roasters LLC and Khrysos Industries, Inc. (the “U.S. Partners”), have solidified an agreement with H&H Coffee Group Export Corp and The Nica Hemp Cooperative, Inc (the “Nicaragua Partners”) to acquire the 2,200 acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua. Plans provide for all electricity and a 15,000 AMP electrical service to be delivered to the property, along with 45,000 square feet of buildings to be erected for extraction drying and storage, and for greenhouse space. With H&H contributing the 2,200 acre farm with an estimated value of $10 million, and the Nica Hemp Cooperative providing an estimated $20 million dollars in capital funding for construction, the total cost for the land and related improvements is approximately $30,000,000 dollars. The U.S. Partners will initially contribute $3,000,000 of extraction equipment along with valuable expertise in the hemp business. In addition, and subject to Nasdaq approval, the U.S. Partners also intend to issue 1.5 million shares of YGYI common stock to the Nica Hemp Cooperative, in exchange for a 50 percent stake in the land and the improvements (with an estimated value of $30,000,000 at completion). The U.S. Partners will also issue 5 million warrants with a strike price of $1.50 per share to the Nica Hemp Cooperative, and will receive a 75% controlling stake in the hemp grow and oil extraction business. The warrants will be issued when the project is completed and operations commence.
