Global Hemp Group Inc. provided in the December 31, 2021 MD&A filed on March 1, 2022 and the CSE Monthly Report filed on April 7, 2022
the Company wishes to provide an update on its Green Community/Hemp Agro-Industrial Zone (HAIZ) project in Hayden Colorado. The Company has experienced some delays in its payment obligations under the existing Definitive Agreement executed with Western Sierra Resources Corporation (WSRC) and Prescient Solutions Group LLC. The Company has been working diligently with its Partners to restructure this agreement to clarify
the relationship of the parties and restructure certain payment terms. WSRC has advised that the various debt payments have been renegotiated and extended to the third and fourth quarter of this year. While the parties continue to work towards finalizing a revised Definitive Joint Venture Agreement, not having a finalized agreement in place has hindered the Company's funding initiatives for the project. Real Estate acquisitions for the project ­ There are currently three land parcels under contract for the project, a 44-acre industrial/commercial property acquired for the HAIZ manufacturing facility, 166-acre annexed and entitled property for development of the Company's initial Planned Unit Development and 664-acre parcel that will be used for agriculture and future residential development (for further detail on the transaction see the news releases of May 10, 2021, and August 23, 2021). WSRC advises that they have in discussions with the sellers of all three properties to renegotiate and extend both the payments and
closing dates on the properties. WSRC further advises that they have received a term sheet for funding that is expected to be sufficient to settle debt payments, provide funding for the acquisition of the properties and initial investment for development of the Colorado project. The funding is subject to certain conditions including a site visit by the lender which is expected to be conducted shortly.