The Manitoba Securities Commission investigation into a share offering of a hemp processing venture continues six months after it was launched.
And Consolidated Growers and Processors, one of the subjects of the investigation, has no idea when the case will be wrapped up.
“The commission said June and it’s December, so your guess is as good as mine,” said Mark Kaeller of Consolidated Growers and Processors, one of the subjects of the investigation.
The securities commission did not return calls.
CGP produced more than 18,000 acres of hemp under contract this year with growers throughout Western Canada.
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The seed and fibre are being warehoused, said Kaeller.
Earlier this year, CGP said it would start building two processing plants at Dauphin, Man. The plants, one for seed and the other for fibre, were to be completed in 2001. Construction planned for this fall has been put on hold.
Kaeller said CGP has been “under a microscope for six months” from the securities commission and the media. However, that will not deter the company’s effort to expand hemp production in 2000, he said.
“We’ve grown over 18,000 acres, and we have three-year contracts, three-year options with our growers, so we’re not going anywhere.”
The company contracted with more than 220 growers this year. An acreage target hasn’t been set for next year, Kaeller said.
Meanwhile, a group of industrial hemp growers said its confidence in CGP remains strong.
The Parkland Industrial Hemp Growers said payments for the 1999 crop were being met by CGP.
“To this point in time, they’ve met all obligations,” said Chris Dzisiak, vice-president of the growers group.
“We probably feel more comfortable about the company now than we had earlier when the investigation began.”
Growers contracted by CGP have received the first of three incremental cheques. The second and third payments are due Jan. 31, 2000, and March 31, 2000.
Growers who deferred all payments until next year will receive half their payment Jan. 31, 2000 and the balance March 31, 2000, according to Parkland Industrial Hemp Growers.
