HERMITAGE â€“ A Texas-based CBD processorÂ is looking to open up shopÂ in Reynolds.
Representatives of Coldfall Corp., based in Houston, announced its intention to settle in Mercer County last week during the annual meeting of Penn-Northwest Development Corp.
Andre Bustamante, Coldfallâ€™s director of human services, said the company was sold on the move after a tour of Greenville-ReynoldsÂ Development Corpâ€™s industrial park in Pymatuning Township.
â€śIn one day we found a home,â€™â€™ he said during the Penn-Northwest event. â€śWeâ€™re coming.â€™â€™
Bustamante said the company has spoken to Gov. Tom Wolfâ€™s Governorâ€™s Action Team about getting financing for the project. Immediate plans for Coldfall are to produce cannabidiol, better known as CBD, Bustamante said.
â€śWe hope to be in production in 90 days,â€™â€™ he said.
Randy Seitz, Penn-Northwestâ€™s CEO, said Coldfall was seeking the financingÂ forÂ the final costs for its move.
â€śWhat theyâ€™re talking about is getting a loan for the equipment they want to bring here,â€™â€™ Seitz said.
Coldfall also isÂ interested inÂ creating a local farm cooperative to supply the hemp itÂ will process into CBD oil, Bustamante said.
â€śWe donâ€™t own any farms,â€™â€™ he said. â€śAnd right now weâ€™re shopping to get 2 million pounds (of hemp) to get us through next year.â€™â€™
Bustamante said he expects farmers to be willing to grow hemp, which is legal in Pennsylvania.
â€śHemp is 10 times more profitable than corn,â€™â€™ he said.
Coldfall, which also converts plastics, coal and tires into oil products including fuel, has developed an process to extract CBD from hemp more efficiently, and with a better-quality product, than other processors, Bustamente said.
CBD oil is a booming business, with shops opening throughout the state, including Mercer County. The substance has been linked to pain relief and depression treatment, among other medical benefits.
Legal CBD, derived from hemp, does not contain tetrahydrocannabinol, or THC, the intoxicant in marijuana.Â
And the CBD operation could be only the beginning.Â Coldfall officials are thinking about bringingÂ a tire recycling operation toÂ the Reynolds site, but there isÂ no timetable in place for that project.
â€śWe could be employing hundreds here,â€™â€™ BustamenteÂ said.