Hempshire Signs $1.25M Purchase Agreement For Mountain Smokes Sales In European Union

The Hempshire Group, Inc. HMPG, a California-based non-tobacco and non-nicotine smokable alternatives company that formulates and sells its own proprietary brand of CBD hemp smokes under the MOUNTAIN Smokes label, executed a binding $1.25 million purchase agreement with European exclusive master distributor Montagnaria Group AG.

The purchase agreement follows Hempshire's recent receipt of approval to sell MOUNTAIN Smokes in Belgium, resulting in access to the entire EU through member state reciprocity.

Purchase Agreement

The purchase agreement includes a binding commitment from Montagnaria to purchase a minimum of $1.25 million of MOUNTAIN Smokes over the twelve-month period from September 2022 through to August 2023. All purchase orders under the purchase agreement require a payment of fifty percent of the total purchase order upon issuance, and payment of the balance prior to the order being shipped by Hempshire.

The purchase agreement was executed to facilitate an orderly and efficient roll-out of MOUNTAIN Smokes across Europe and the EU. Hempshire is working closely with Montagnaria to ensure the MOUNTAIN Smokes product complies with individual member nations' specific 'local' regulations, such as packaging in the local language, and inclusion of any locally required warning labels.

Through its initial test orders in 2021, Montagnaria has been successful in the placement of MOUNTAIN Smokes into approximately 400 retail stores and smoke shops throughout Switzerland. In addition, Montagnaria was a key partner in assisting Hempshire to obtain Belgian government approval to sell MOUNTAIN Smokes in that country, opening the door to the entire EU. Montagnaria will also be arranging European warehousing and fulfillment facilities to facilitate servicing of retailer accounts, convenience stores and smoke shops across Europe, and will be working closely with Hempshire to finalize a European-wide sales and distribution plan.

"Penetrating the $261 billion tobacco products market in Europe is one of our top priorities." stated Martin Marion, Hempshire president and CEO. "Montagnaria's binding financial commitment to MOUNTAIN Smokes highlights their excitement and belief in the product, and their expectations of a successful European roll-out strategy. We intend on dedicating significant resources alongside Montagnaria to help facilitate brand awareness, consumer demand, and sales in each European country where we introduce MOUNTAIN Smokes."

Photo: Benzinga; Sources: courtesy of jarmoluk and lindsayfox via Pixabay