(ALGA) Algae International Group, Inc. Introduces American Seed & Oil Company
The Company’s Algae Biodiesel start-up met more market resistance than anticipated leading to a reconsideration of corporate strategy late last year. Ed Bollen came on board as the CEO at that time to assess the Company’s various intellectual and physical assets and to explore new business opportunities and directions that might ideally be built from those assets.
A logical new direction became apparent almost immediately given certain expertise resident within the Company and an exciting new agricultural market opportunity burgeoning within North America. Since committing to that new direction, the Company has quietly made substantial strides in laying down the groundwork to establish itself as a leader within this burgeoning agricultural market opportunity.
While developing the former business to produce biodiesel from cold pressed algae oil, the Company explored other feedstock sources that might be additional viable sources for producing biodiesel. Industrial Hemp was one of the potential biodiesel sources the Company explored. While a less than expected market demand for biodiesel failed to ignite the former biodiesel business plan, the Company continued to explore the industrial Hemp and overall Cannabis market opportunity starting to capture headlines nationally.
Underserved & Misunderstood
The potential number and variety of products and markets that can develop from the rapidly evolving Cannabis market is quite literally overwhelming and limited only by one’s imagination. A quick Internet search will lead to as many as 25,000 uses for Hemp alone. However, the Cannabis market opportunity today is largely misunderstood by would be consumers, government regulators and a host of market participants that will be necessary to facilitate the production and distribution of any future Cannabis products.
Nevertheless, the Cannabis market is an unstoppable juggernaut. The confusion will be sorted out by brute force demand for legalization. The demand is multidimensional coming from medical research as well as the patients and their families that stand to benefit from the research; social policy advocates seeking to create new jobs; environmental activists working to counter the nutritional impact of genetically modified organisms (GMO) with an under utilized source of non-GMO impacted nutrition; not to mention the robust recreational consumer market that is exiting the cloistered speakeasy environment in mass to partake in the broad light of day. This short list here barely touches on the magnitude of the multidimensional demand driving the Cannabis juggernaut.
Let me now try to address some of the confusion in order to explain our business plan for this burgeoning Cannabis market:
‘Hemp’ is a common term for the high growing strain of the Cannabis plant. No pun intended – ‘high’ means tall. Hemp has a complicated and misunderstood reputation thanks to its more notorious cousin Cannabis Sativa, an herbaceous and short growing member of the Cannabis family known primarily for its medicinal benefits both therapeutic and recreational. Yes, Cannabis Sativa is the source of the drug marijuana.
The psychoactive agent found in Cannabis Sativa that causes what’s commonly referred to as a ‘high’ is called tetrahydrocannabinol or THC. This is one of 60 cannabinoids found in the overall Cannabis family of plants.
Another prominent cannabinoid is known as cannabidoil (CBD). CBD oil in some ways is the opposite of THC. In fact it has been shown to neutralize the effects of THC. Where THC is a psychoactive agent, CBD might be called an anti-psychoactive agent.
The anti-psychoactive qualities of CBD oil are proving to have a medical neurological benefit particularly for those with neurological diseases. The neuroprotective benefits of CBD oil are being used to treat neurological diseases such as Parkinson’s, and epilepsy.
CBD oil is also an antitoxin and a valuable supplement in food products as well as creams and lotions.
Hemp has more CBD oil than Cannabis Sativa. The Hemp plant is 40% oil by weight and rich in CBD. Hemp is very low in THC.
Thanks to the complicated and misunderstood reputation of Hemp’s notorious cousin, the many valuable benefits of Hemp have for decades been lost in the United States.
Hemp produces seed, oil and fiber. The byproducts of Hemp have been used for centuries for nutrition, medicine and various textiles from clothing to rope.
The first European settlers here in the United States were delivered on sails made from Hemp and hoisted by Hemp rope. The very word ‘Canvas’ as in Canvas Sails, comes from the word Cannabis.
Both Hemp oil and Hemp seeds are rich in protein and in fact satisfy all the human daily nutritional protein requirements. Hemp oil is also rich in essential fatty acids that satisfy 80% of the human daily nutritional fatty acid requirements.
The Hemp plant is an extraordinarily productive plant being 40% useable oil by weight and 33% seed by weight.
The American Seed and Oil Company Business Strategy
While the ‘promise’ of the Cannabis market is great, the path to achieving the ‘promise’ is unclear. It’s too early to invest in ‘seizing’ a market opportunity no one can yet define.
The vast majority of dot com companies launched in the 90’s to pursue gold within the future of the Internet economy failed. Similar results are to be expected from the burgeoning number of Cannabis startups today.
We believe an incubator approach will improve the odds of success by building multiple, complimentary businesses with an initial strategy to explore market opportunity rather than to attempt seizing market opportunity prematurely where the ‘market’ has not yet been defined.
The Company will pursue underserved sectors of the overall Cannabis ecosystem. Seed is where it all starts and Cannabis seed is hard to find. While a State may legalize growing, the Federal Government could be an obstacle when it comes to shipping seed through the U.S. Mail. Much is yet to be worked out in the Cannabis seed market and we plan to be a leader in defining the seed market. The first incubated subsidiary will concentrate on growing hemp for seed and developing a distribution channel though the obstacles of the ongoing battle between the States and Washington D.C.
The Company has established The American Seed & Oil Company as a wholly owned subsidiary of Algae International Group, Inc. We intend to change the Algae International Group name to American Seed & Oil Company.
American Seed & Oil has contracted with two state licensed hemp growers and the crops are in with knee high plants already thriving (see pictures from our farm below). The development of a lab for cold pressing and testing Cannabis oils is already under way.
A second incubated subsidiary is under development. The Company is in negotiations with a major health supplement distribution company to develop a line of hemp health supplements. The Company is also actively seeking partners to develop hemp based creams, lotions and serums. The Company is currently engaged in conversations with a number of chefs to explore the development of hemp infused recipes.
The third incubated subsidiary will be a Hemp and Marijuana lifestyle clothing business. The lifestyle wear subsidiary, The Original Hempster, will be launched with a single t-shirt sold over the Internet.
We believe the sideline is no place to find leaders. Leaders in the emerging Cannabis industry will join the fray between the States and Washington D.C. With every sale, the Company will contribute financially to the legalization lobby effort.
Joining The Social Revolution
In our research and overall effort to build The American Seed & Oil Company, we have heard it said more than once that President Obama will not go down in history as the ‘Healthcare’ President but rather as the ‘Weed’ President. While the President may sign the legalization bill into law, it’s the Social Revolution within today’s America that is driving legalization. Rome always goes the way of the crowd eventually.
We are joining the Social Revolution in our own unique way. The team here at The American Seed & Oil Company includes a good number of military Veterans. Being sensitive to Veteran concerns, we can’t overlook the coincidence of our farming opportunity and the disproportionate number of military personnel coming from rural communities. We are working to integrate our business development efforts with a number of existing Veterans’ agricultural initiatives already in existence.
We are similarly working to integrate our business development efforts with Native American farming initiatives. We believe both Veteran and Native American resources are underappreciated and accordingly underused resources and that together we can all mutually benefit from the pursuit of the virtually untapped Cannabis market.
The financial reports for Algae International Group, Inc. have been updated with OTC Markets. The reports have been reviewed by legal counsel and Company legal counsel’s opinion regarding the reports will be filed shortly bringing the Company in compliance with the OTC Market’s ‘Current Information’ standard.
A new website is up now – www.americanseedandoil.com. It’s basic at the moment, but check back frequently for ongoing updates.
The Company recently participated in the 20th Annual Solarfest (http://www.solarfest.org/) in Vermont, the First Annual Weedstock Investment Conference (http://www.weedstockconference.com/) in Colorado, and most exciting of all, one of our farmers was interviewed by Jon Kalish of NPR for an upcoming show (http://www.wnyc.org/people/jon-kalish/). Look for more details on all of the above to be posted on the website soon.
Also look for more details on each of the Company’s three new subsidiaries to be posted on the website soon as well. We also plan to update the website in the near future with more information on our Veteran and Native American developments.
The nearly one century long Cannabis Industry regulatory impediments caused by the notorious cousin, Cannabis Sativa, are failing by the wayside. While we don’t know the way or the time exactly, it seems abundantly clear that Cannabis Sativa and all its less notorious cousins will inevitably be set loose from their current regulatory constraints.
American Seed & Oil’s business strategy is founded on the fact that no one has a crystal ball into how the Cannabis Industry in the United States will develop, but it is pretty clear that nothing is going to stop the Industry’s momentum from becoming a major market in the not too distant future.
It is too early to invest in ‘seizing’ a market opportunity no one can yet define. Accordingly, The American Seed & Oil Company’s mission is to appropriately invest as an early industry leader to ‘define’ the Cannabis Industry of tomorrow. And we think that definition begins with Hemp Seed and CBD Oil.
Hemp is a U.S. home grown (pun intended) industry waiting to happen. It can generate much needed farming and manufacturing jobs and serve as the foundation to a long list of entirely new, high quality, competitive products from foods to clothing to construction materials.
The Company is starting with the three incubated subsidiaries highlighted herein, and will continue to explore the introduction of additional complimentary subsidiaries. As subsidiaries develop to a viable stage of independence, the Company will spin off such subsidiaries creating independent return on investment opportunities for parent shareholders.
We look forward to years of creating new Cannabis market products and services as this burgeoning opportunity grows into a leading U.S. Industry.
Investor Relations: Mike.Murphree@AmericanSeedandOil.com