– Opportunity to invest in the growing US industrial hemp industry through a bio-technology company possessing expertise and experience rarely found in this nascent, emerging industry. Company began preparing for re-introduction of industrial hemp as a rapidly renewable resource in the US seven years before regulatory changes began to be formulated.
– Company’s Chief Technical Officer, Tapan Chatterjee, is globally recognized for his textile expertise. A former founder/owner of an Indian textile company employing 500+ people, he is responsible for developing BastLab’s novel bio-based products, primarily leveraging the properties of industrial hemp, as well as the company’s processing equipment.
– Company has developed high performance, 100% bio-based athletic sports towels (targeting swimming and wrestling sports in particular) that have demonstrated superior wicking, drying and durability. The towels dry athletes fast and the towels themselves dry rapidly. Inherently resistant to mold and certain infection-causing pathogens, the hemp/organic cotton fabric confers health benefits in addition to superior functional performance. Towels have been favorably received by club and collegiate swimmers. After used 14 times by one swimmer without washing, the towel remained odorless. The most recent towel version is to be trialed in collegiate Division I swim and wrestling programs. USA Swimming, the governing body that selects the US Olympic swim team, is interested in BastLab towels and will soon distribute them to Olympians for testing. Planned kick starter campaign for athletic towels, branded Locker Standard TM, is intended to initiate viral brand building-in addition to securing non-dilutive financing.
– Company has also developed performance bed and bath linens for medical market. As pathogens, especially those resistant to antibiotics, extend outside the health care setting, infections will increase as a leading cause of death. By midcentury, such infections are expected to overtake cancer as the number one cause of death. BastLab has developed linens made from hemp and organic cotton that breath well and are super soft, imparting a feeling of soothing comfort (individuals with anxiety and restless leg syndrome have indicated sleeping particularly well when using the company’s non-synthetic, chemical-free bedding). Third party micro-biology testing labs have indicated that the sheets are resistant to several of the pathogens responsible for the majority of hospital-acquired infections. Ongoing third party microbial testing and field studies will be additionally performed. HomeInstead, the largest senior assisted in-home care living company, is partnering with BastLab to conduct bedding field trials to assess comfort for the elderly.
– Company continues to build out its intellectual property portfolio comprised of processing trade secrets, manufacturing equipment patents and trade-marks. Key processing know-how, such as cleanly separating hemp fiber from the plant’s stalk and softening the fiber, a precursor to blending with cotton for spinning, reflect uncommon knowledge in the industry. Further, the proprietary technology and processing knowhow can fill gaps in the currently forming industrial hemp supply chain.
– Company has devoted two years vetting a base of manufacturers in India, capable of sampling and satisfying industrial scale order quantities.
– Company will establish an R&D facility and stand-up manufacturing operations in the US in final quarter of 2020
– Company has adopted a capital efficient operating model. Products will be initially sourced, limiting upfront capex, and the processing facilities to be established in the US are modularized, guided by the type and size of product demand.
– Products gross margins exceed 50%. Markets are all multi-billion in size.
– Future product development opportunities derived from industrial hemp, a rapidly renewable natural resource, are nearly boundless. Discipline, agility and cultivating business partnerships will be critical. Such agility, focus and ability to forge relationships with individuals and companies have been demonstrated already by BastLab.
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