Fibers / yarns / fabrics
Montgomery, Alabama-based industrial hemp fiber processor BastCore has closed an oversubscribed $ 2.8 million Series A financing to expand its production.
The company buys hemp stalks and sells fiber products. This bridges the gap between farmers who grow hemp and industries that demand inexpensive, sustainably produced raw materials
Poseidon Asset Management participated in the oversubscribed round and has invested in cannabis and hemp since launching its first fund in 2014.
Poseidon has limited its exposure to US CBD due to too much money going into space, but sees the opportunities for industrial hemp as much greater
“Our capital has helped create thousands of jobs and millions in tax revenue, and we believe this economic energy is entering the US industrial manufacturing industry,” said Morgan Paxhia, general manager of Poseidon Asset Management. “We have limited our exposure to US CBD (cannabidiol) as too much money flooded into this space, but the opportunities for industrial hemp in textiles, automobiles, construction, etc. are many times greater than with CBD with much larger plant usage . BastCore has developed an innovative technology capable of supporting and transforming massive industries. This is a great American story. “
“Our investors understand the tremendous economic potential industrial hemp will have for various industries,” said Coleman Beale, CEO of BastCore. “They are realizing the value of our leading decortation technology and it is exciting to see the investment community realizing the critical need to build a consistent, reliable supply chain. This investment gives us the capital we need to expand our production significantly. ”
The company will now continue to improve its proprietary decortation and degumming technology, hire new staff and, among many others, meet the demand it sees in the textile market.
BastCore believes it now has the ability to provide the raw material for over 25,000 industrial use cases and applications, working closely with its partners to ensure product traceability and transparency.
“Global supply chains are about to be disrupted,” said Beale. “Our partners demand transparency and traceability. We are very well positioned to benefit from this trend and to create good manufacturing jobs here in the USA. “