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Fibres/​Yarns

BastCore raises $2.8 million to expand hemp production

Company will now further enhance its proprietary decortication and degumming technology.

21st April 2021

Knitting Industry
 |  Montgomery, AL, USA

Knitted Outerwear, Intimate Apparel

Industrial hemp fibre processor BastCore, based in Montgomery Alabama, has completed an oversubscribed Series A financing for $2.8 million to expand its production.

The company buys hemp stalks and sells fibre products, bridging the gap between farmers growing hemp and industries demanding cost-competitive, sustainably produced raw materials.

Poseidon has limited its exposure to US CBD, seeing too much money flooding into the space, but views the opportunities for industrial hemp as much bigger

Poseidon Asset Management participated in the oversubscribed round, having invested in cannabis and hemp since its first fund was launched back in 2014.

 “Our capital has helped to create thousands of jobs and millions in tax revenues and we believe this economic energy is coming to the US industrial hemp industry,” said Poseidon asset management managing director Morgan Paxhia. “We have limited our exposure to US CBD (cannabidiol) as we saw too much money flooding into that space, but opportunities for industrial hemp in textiles, automotive, construction, etc., are many times the size of CBD, with much greater plant utilisation. BastCore has developed innovative technology capable of supporting and transforming massive industries. This is a great American story in the making.”

“Our investors understand the vast economic potential that industrial hemp will have on multiple industries,” said BastCore CEO Coleman Beale. “They recognise the value of our leading decortication technology and it is exciting to see the investment community recognise the critical need to build a consistent, reliable supply chain. This investment gives us the necessary capital to considerably expand our production.”  

The company will now further enhance its proprietary decortication and degumming technology, hire new personnel and serve the demand it is seeing from the textiles market, in addition to many others.

BastCore believes it now has the opportunity to supply 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 in the process of disruption,” said Beale. “Our partners demand transparency and traceability and we are extremely well positioned to capitalise on this trend and provide good manufacturing jobs here in the USA.”

www.bastcore.com

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