World-Class Extractions Inc. (“World-Class” or the “Company“) (CSE: PUMP) (FRA:WCF) is pleased to announce the signing of an agreement (the “Agreement“) with Nutralife Holdings, LLC (“Nutralife Holdings“) and Nutralife Extraction Limited Partnership (“Extraction LP“) to establish a joint venture (the “Joint Venture“) to develop, manage and operate a hemp extraction and processing facility in Imperial County, California (the “Facility“) to extract hemp oil from hemp biomass in compliance with the U.S. Agriculture Improvement Act of 2018 – also known as the Farm Bill.

Pursuant to the terms of the Joint Venture, the parties will enter into a definitive joint venture agreement (the “JV Agreement“) to extract hemp biomass into hemp oil, from which hemp oil products can be manufactured.  The parties intend to carry out the Joint Venture under a two-stage program.  Under Stage One, Nutralife Farming LP (“Farming LP“), an affiliate of Extraction LP, will enter into a 15 year lease agreement with the land owner, renewable for two additional 5 year terms, to lease up to 1,900 acres of farmland that are adjacent to the Facility (the “Property“), and Extraction LP will enter into a similar lease with the same land owner for the Facility (the “Leases“). Farming LP will obtain all necessary permits and licenses to carry out cultivation of hemp on the Property and will cultivate an initial crop of 80 acres of hemp, which World-Class will assist in drying and delivering to an extraction facility.  Following successful completion of Stage One, the parties intend to commence large-scale commercial production in Stage Two.  Word-Class will incorporate a wholly-owned subsidiary in the United States (“WCE-USA“), the Extraction LP will obtain all applicable regulatory approvals relating to the extraction of hemp at the Facility, and Farming LP will cultivate an initial crop of 400 acres of hemp, with a commitment to progressively cultivate up to 1,900 acres.  The Joint Venture will extract the hemp oil from hemp, and will be paid a processing fee equal to 1/3 of the fair market value of the extracted product.

Under the terms of the JV Agreement, the two parties will share economic benefits through a profit-sharing structure reflective of the respective interest of each party.  Holdings will own 60% of the Joint Venture and World-Class will own 40% of the Joint Venture.  The parties intend to extract hemp produced by the Farming LP in consideration for a processing fee of one-third of the value of the extracted product.  With a history rich in hemp-farming dating back to 1917, the climate and growing conditions in Imperial County, California are ideal, allowing for the site to grow at least two crops per year (where other states and counties grow one).  Based on two hemp harvests per year, the parties estimate that the Facility will accommodate the annual production of up to 3,800,000 kg of extracted biomass, which could yield between 225,000 kg to 350,000 kg of hemp oil distillate or hemp oil isolate.  Extraction services are expected to commence mid-2020.

Sample Economic Benefit Scenario – per Acre per Month Under Cultivation *

* Please note that all values above are expressed in USD, and are estimated amounts only and reflect forward-looking information, which means the estimates may change.  Please refer to “Cautionary Note Regarding Forward-Looking Statements” below.

Nutralife is an affiliate of Nutralife Wellness, LLC, (“Nutralife Wellness“) a leading manufacturer and vendor of hemp derived products, including face and body skincare, general wellness and products for pets (https://nutralifewellness.com).  Nutralife wellness has a team with over 30-years of combined experience in hemp derived products, manufacturing, branding and sales.  Nutralife Wellness currently sells its products in the USA and is targeting sales in foreign countries as laws permit.

Rosy Mondin, CEO of World-Class, stated, “Our Joint Venture with Nutralife marks a significant milestone for World-Class.  The deployment of our hemp extraction and processing facility in Southern California provides World-Class with access to the market in the United States.  The Joint Venture will not only extract and process hemp oil, but will also manufacture hemp derived products for human health and pet wellness with distribution of these products through Nutralife’s affiliate, Nutralife Wellness.  The Joint Venture will also allow us to offer our hemp extraction and processing services to licensed third-parties in the United States.”

Christopher Summers Managing Member of Nutralife stated, “World-Class represents the pinnacle of the hemp extraction and processing industry, having been proven in the more mature Canadian market.  We see this joint-venture as instrumental and foundational to our plant-to-product value chain strategy while expanding the World-Class footprint.  This will provide the Nutralife family of companies and others in the industry a local, trusted extraction and processing solution.”

SOURCE World Class Extractions Inc.