Marijuana Company of America Inc. (OTCMKTS:MCOA) has launched two new subsidiaries as part of its change in strategy to focus on its Hempsmart™ subsidiary. The company launched MR Hemp Uruguay and MR Hemp Brazil to deliver its hemp-based HempSMART™ high-quality products to the Uruguayan and Brazilian markets.
Marijuana Company of America bringing hempSMART™ to South America
The joint venture with MR Hemp Uruguay and MR Hemp Brazil includes production and distribution opportunities that will bolster its global expansion. It will also allow the Marijuana Company of America to distribute hemp-derived hempSMART™ products in Brazil. The country boasts a market of more than 212 million consumers and recently has witnessed a surge in CBD product sales. The Brazilian subsidiary will manufacture and sell the hempSMART™ product line in Brazil, where the company has already started engaging Medical physicians showing interest in its CBD products.
Equally, MR Hemp Uruguay will manufacture and distribute hempSMART™ products to a market of more than 3.6 million consumers. Uruguay was the first country globally to legalize recreational and medical marijuana. The company is also applying for status in a “Free Trade Zone,” allowing it entity exemption of domestic, sales, and exportation tax. Most importantly, the company will benefit from a cost effective cist structure in manufacturing products and sales through the newly established subsidiary.
MCOA dissolves joint venture with Global Hemp Group
Recently MCOA dissolved its Joint Venture with Global Hemp Group Inc. (OTCMKTS:GBHPF) as part of its efforts to focus on its hempSMART™ CBD Consumer Products Division. The company’s CEO and CFO, Jesus Quintero, said that it was an opportune moment to dissolve the Joint Venture as the company plans its year-end of 2020 and commencement of 2021 with a focus on building the hempSMART™ business. Quintero added that the company has already started the next development phase and expects increased revenue for the rest of the year with more global expansion. Following the dissolution, the Global Hemp Group will make two cash payments and grant MCOA common shares for $185,000.