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Greenlane Announces Financial Results for the Second Quarter of 2019

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BOCA RATON, Fla., Aug. 12, 2019 (GLOBE NEWSWIRE) — Greenlane Holdings, Inc. (Nasdaq: GNLN) (“Greenlane” or “the Company”), one of the largest global sellers of premium cannabis accessories, CBD and liquid nicotine products, today reported financial results for its second quarter ended June 30, 2019.
Second Quarter 2019 and Other Recent Financial and Operating Highlights:Net sales increased 30.6% to a record $53.0 million;Broadened hemp-derived CBD offerings through exclusive distribution partnerships with leading brands including Bloom Farms, Cookies, Slang Worldwide and Pax Era;Entered partnership with Canopy Growth for exclusive distribution of Storz & Bickel’s vaporizers throughout the U.S.;Added new closed system vaporization products by entering into distribution agreements with Hanu Labs and AVD;Began shipping VIBES Rolling Papers;Net loss was $3.2 million, impacted by $1.7 million of equity-based compensation, $0.3 million of costs associated with transitioning to a public company;Adjusted net loss was $1.2 million compared to adjusted net income of $0.6 million in the prior year period;Adjusted EBITDA was a loss of $1.2 million compared to a gain of $1.1 million in the prior year period;Completed initial public offering (IPO) of 5.25 million primary shares in April 2019; as of July 12, Greenlane Holdings Inc. had approximately 41.9 million Class A shares outstanding on an as converted basis1;Ended the quarter in a strong financial position, with $69.3 million of cash as of June 30, 2019, compared to $7.3 million as of December 31, 2018.1 Reflects the number of shares of Greenlane’s Class A common stock that would be outstanding assuming the exchange of all outstanding shares of Class B common stock and Class C common stock upon redemption of Common Units.All growth rates reflect year over year growth comparing the second quarter of 2019 to the second quarter of 2018.“We generated record second quarter net sales, resulting in over 30% year-over-year growth. We saw growth across multiple product categories in both the U.S. and Canada for the quarter,” stated Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer. “Sales of JUUL increased nearly 70% over the prior year, led by strong gains in Canada along with continued growth in the U.S. We are working closely with JUUL to support the mission of helping adult smokers to make the switch from combustible cigarettes and executed successful promotions and support for lower nicotine products to build share in the e-cigarette category. We signed several new distribution agreements during the quarter, and we have seen strong initial sales resulting from of our recent entry into the large and growing hemp-derived CBD category. We see considerable opportunities for future growth across the cannabis accessories, CBD and liquid nicotine markets and continue to invest in the people and infrastructure to support long-term growth of each of these categories to drive shareholder value. We ended the quarter in a strong financial position with $69 million of cash, providing ample capital to accelerate our growth through potential future acquisitions.”Second Quarter 2019 ResultsFor the second quarter ended June 30, 2019, the Company reported net sales of $53.0 million, an increase of 30.6%, compared to $40.6 million in the second quarter of 2018. The increase was driven by continued growth of the North American cannabis, CBD and liquid nicotine markets. The increase for the quarter compared to the prior year period included an increase of $10.5 million from sales of e-cigarette products, an increase of $0.8 million from sales of child-resistant storage solution products and $1.8 million from sales of the introduction of new product lines, including hemp-derived CBD products.Gross profit for the second quarter of 2019 was $9.2 million, or 17.3% of revenue, compared to $8.4 million, or 20.7% of revenue, for the same period in 2018. The decline in gross profit as a percentage of net sales on a year-over-year basis primarily reflects changes in sales mix and promotions with a key product supplier.Salaries, benefits and payroll tax expenses for the second quarter of 2019 increased approximately $3.4 million to $7.0 million, or 13.3% of net sales, compared to $3.6 million, or 8.9% of revenue, for the same period in 2018. The increase primarily reflects an increase in personnel expenses resulting from the addition of 65 employees as we continued to expand the Company’s domestic sales and marketing efforts and $1.7 million of equity-based compensation expense.General and administrative (G&A) expense for the second quarter of 2019 increased approximately $1.3 million to $5.4 million, or 10.2% of net sales, compared to $4.1 million, or 10.1% of revenue, for the same period in 2018. The increase primarily reflects an increase in marketing expenses, subcontracted services, executive search and recruitment expenses, new facility expenses and the acquisition of the Company’s headquarters building, the acquisition of Pollen Gear and an increase among other expenses. Additionally, G&A includes $0.3 million of incremental audit and legal fees and consulting expenses related to the Company’s transition to becoming a public company.Net loss for the second quarter of 2019 was $3.2 million and was impacted by $1.7 million of equity-based compensation expense and $0.3 million of non-recurring costs associated with transitioning to a public company.Adjusted net loss for the second quarter of 2019 was $1.2 million compared to adjusted net income of $0.6 million in the second quarter of 2018. Adjusted net loss for the second quarter of 2019 excludes the above-mentioned expenses in net loss. Adjusted net income for the second quarter of 2018 excludes $0.4 million of costs associated with transitioning to a public company.Adjusted EBITDA was a loss of $1.2 million for the second quarter of 2019, compared to a gain of $1.1 million for the comparable period in 2018.Balance Sheet & LiquidityThe Company’s cash at June 30, 2019 was $69.3 million and total debt was $8.3 million, compared to $7.3 million and $48.5 million, respectively, at December 31, 2018. On April 23, 2019, the Company completed an initial public offering of 6.0 million shares, of which 5.25 million shares were offered by the Company raising net proceeds of approximately $80.4 million.Conference Call InformationThe Company will host an investor conference call today at 5:00 p.m. Eastern Time. Investors interested in participating in the live call can dial +1 (877) 705-6003 from the U.S. or international callers can dial +1 (201) 493-6725. A telephone replay will be available approximately two hours after the call concludes and will be available through Monday, August 19, 2019, by dialing (844) 512-2921 from the U.S. or +1 (412) 317-6671 from international locations, and entering confirmation code 13693197.There will also be a simultaneous, live webcast available on the Greenlane Investors website in the Events & Presentations section at https://investor.gnln.com/events-and-presentations or directly at http://public.viavid.com/index.php?id=135640. The webcast will be archived for approximately 30 days.Presentation of Financial Information Use of Non-GAAP Financial Measures The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.Greenlane discloses Adjusted Net (Loss) Income and Adjusted EBITDA, which are non-GAAP performance measures, because management believes these metrics assist investors and analysts in assessing the Company’s overall operating performance and evaluating how well Greenlane is executing its business strategies. You should not consider Adjusted Net (Loss) Income or Adjusted EBITDA as alternatives to net (loss) income determined in accordance with U.S. GAAP as indicators of Greenlane’s operating performance.For more information on Greenlane’s non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.Forward Looking StatementsCertain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements include, among others: comments relating to the current and future performance of the Company’s business; growth in demand for the Company’s products; growth in the market for cannabis, nicotine and hemp-derived CBD products; the Company’s marketing and commercialization efforts the Company’s; and the Company’s financial outlook and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the final prospectus relating to the Company’s initial public offering filed pursuant to Rule 424(b) of the Securities Act of 1933, as amended, which was filed with the SEC on April 22, 2019 and is accessible on the SEC’s website at www.sec.gov.About Greenlane Holdings, Inc.Greenlane (NASDAQ: GNLN) is one of the world’s largest sellers of premium cannabis accessories, CBD and liquid nicotine products. The Company operates as a powerful house of brands, third party brand accelerator and distribution platform for consumption devices and lifestyle brands serving the global cannabis, CBD, and liquid nicotine markets with an expansive customer base of more than 11,000 retail locations, including licensed cannabis dispensaries, and smoke and vape shops. Greenlane has an established track record of partnering with brands through all stages of product lifecycle, providing a range of services including product development, go-to-market strategy, sales and marketing support, market research, customer service, direct-to-consumer fulfillment, warranty repair, supply chain management, and distribution. In addition to owning and operating its own brands, Greenlane is the partner of choice for many of the industry’s leading players including PAX Labs, (Canopy-owned) Storz & Bickel, JUUL, Grenco Science, Firefly, DaVinci, Select, Sherbinski, Bloom Farms, Mary’s Nutritionals, Cookies and dozens of others. Greenlane’s house of brands is comprised of child-resistant packaging innovator Pollen Gear; VIBES rolling papers; the Marley Natural accessory line; the Keith Haring accessory line, Aerospaced & Groove grinders, and Higher Standards, which is both an upscale product line and an innovative retail experience with flagship stores at New York City’s famed Chelsea Market and Atlanta’s Ponce City Market. The Company also owns and operates Vapor.com, an industry leading e-commerce platform which offers convenient, flexible shopping solutions directly to consumers. For additional information, please visit: https://gnln.com/.Media Contact:
Cory Ziskind
ICR
646-277-1232
greenlane@icrinc.com
Investor Contact:
Scott Van Winkle
ICR
617-956-6736
scott.vanwinkle@icrinc.com

          RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/12/1900737/0/en/Greenlane-Announces-Financial-Results-for-the-Second-Quarter-of-2019.html?f=22&fvtc=5&fvtv=41223728

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Indus Holdings, Inc. Reports Record Revenue in the Second Quarter 2019 Financial Results

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SALINAS, Calif., Aug. 21, 2019 (GLOBE NEWSWIRE) — Indus Holdings, Inc. (“Indus”) (CSE:INDS), a leading, vertically integrated cannabis company, today announced its financial results for the fiscal second quarter ending June 30, 2019. 
Second Quarter Financial and Business HighlightsGenerated second quarter record revenue of $9.7 million, 183% year-over-year and 51% sequential growthAdded 87 new dispensaries during the quarterAnnounced acquisitions of CBD brands Shredibles and Humble Flower Co.Entered Nevada and Oregon markets through its pending acquisition of W Vapes, a licensed multi-state manufacturer and distributor of cannabis productsCompleted the renovation of its state-of-the-art 15,000 square foot distribution center in Salinas, Calif.“I am proud of our team’s results and the successes that we demonstrated in the second quarter,” said Indus Holdings, Inc. Co-Founder and Chief Executive Officer Robert Weakley.  “During the quarter, we continued to execute on the four pillars of our strategy by investing in our portfolio of brands, expanding our distribution, entering new markets through acquisitions, and producing the highest quality products.”“I believe we are uniquely positioned in our markets,” Weakley continued.  “The infrastructure that we built over the last few years will give us the capacity to expand within the California market, and we plan to replicate our success in the Nevada and Oregon markets and beyond.  I believe we have the management team and infrastructure to execute on our plan and to position ourselves as a leader in the markets we enter with our portfolio of brands.”Fiscal Second Quarter 2019 Earnings Call Details
Indus plans to host a conference call with management today at 5:00 p.m. ET.  The call can be accessed using the following dial-in information:
U.S and Canadian Toll-free:        +1 877-407-0789
International:                                +1 201-689-8562
Please dial-in at least 15 minutes before the call to register. To be added to the Indus Holdings, Inc. email distribution list, please email ir@indusholdingco.com with Indus in the subject line.About Indus Holdings, Inc. 
Indus Holdings, Inc. (CSE:INDS) is a vertically-integrated cannabis company with advanced production capabilities, including cultivation, extraction, manufacturing, brand sales & marketing, and distribution. Founded in 2014 and based in Salinas, California, Indus offers services supporting every step of the supply chain and an extensive portfolio of award-winning brands, including House Weed, The Original Pot Co., MOON, Acme, Beboe, Dixie Elixirs & Edibles, and Orchid Essentials. Indus Distribution, a division of Indus Holdings, Inc., is a leading distributor of cannabis products, servicing an extensive portfolio of brands and licensed retailers.
Use of Non-IFRS Financial Information
To supplement the Company’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”), Indus uses non-IFRS measures to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. These non-IFRS financial measures are adjusted EBITDA, adjusted gross profit, adjusted gross margin, and non-IFRS net earnings (loss). Management believes that these non-IFRS financial measures reflect the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. Management also believes that these non-IFRS financial measures enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. These non-IFRS financial measures may also exclude expenses and gains that may be unusual in nature, infrequent or not reflective of the Company’s ongoing operating results. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables below reconcile our results of operations in accordance with IFRS to the adjusted results mentioned above:
Reconciliations of Selected Non-IFRS Financial and Performance MeasuresAdjusted gross profit excludes the fair value adjustments for biological assets. Management believes this measure provides useful information as it removes fair value metrics tied to increasing stock levels (decreasing stock levels) required by IFRS.Adjusted gross margin is excludes the fair value adjustments for biological assets. Management believes this measure provides useful information as it represents the gross profit based on the Company’s cost to produce inventory sold and removes fair value metrics tied to increasing stock levels (decreasing stock levels) required by IFRS.Adjusted EBITDA is net income (loss), excluding the effects of income taxes (recovery); net interest expense; depreciation and amortization; non-cash fair adjustments on investments; unrealized foreign currency gains/losses; non-cash fair value adjustments on sale of inventory and on growth of biological assets; and other transactional and special expenses, such as acquisition costs and expenses related to our reverse takeover, which are inconsistent in amount and frequency and are not what we consider as typical of our continuing operations.  Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by operations.

Fiscal 2019 IFRS operating expenses comprised of $1.8 million in charges related to the Company’s reverse takeover and acquisition activities. Management believes this measure provides useful information as the Company incurred significant expenses in connection with its reverse takeover and acquisitions, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations.
Forward-Looking Information and StatementsThis press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Indus’ beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Indus’ control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved.” The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the ability of the Company to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors.  There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Indus’ current beliefs and is based on information currently available to Indus and on assumptions Indus believes are reasonable.Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Indus to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; operating and development costs; competition; changes in legislation or regulations affecting Indus; the timing and availability of external financing on acceptable terms; the available funds of Indus and the anticipated use of such funds; delay or inability to complete an acquisition; favorable production levels and outputs; the stability of pricing of cannabis products; the level of demand for cannabis product; the availability of third-party service providers and other inputs for Indus’ operations; and lack of qualified, skilled labor or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Indus’ disclosure documents, such as Indus’ listing statement filed on the SEDAR website at www.sedar.com. Although Indus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement.The forward-looking information contained in this news release represents the expectations of Indus as of the date of this news release and, accordingly, is subject to change after such date. However, Indus expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.  Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed, or accepts responsibility for the adequacy or accuracy of, the content of this news release.
Investor Relations Contact
Gwyn Lauber
Indus Holdings, Inc.
ir@indusholdingco.com
Media Contact
Renata Follmann
Rossetti Public Relations
pr@indusholdingco.com

 
 

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1905101/0/en/Indus-Holdings-Inc-Reports-Record-Revenue-in-the-Second-Quarter-2019-Financial-Results.html?f=22&fvtc=5&fvtv=41223728

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AGCO releases results of the second cannabis lottery: 42 applicants notified to apply for a cannabis Retail Store Authorization in Ontario

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TORONTO, Aug. 21, 2019 (GLOBE NEWSWIRE) — The Alcohol and Gaming Commission of Ontario (AGCO) has released the results of the cannabis retail store lottery draw it held on August 20, 2019. The lottery provided those who met pre-qualification requirements for one of the 42 new store authorizations announced by the Government of Ontario on July 3, 2019, an opportunity to be selected to apply for one.
4,864 eligible expressions of interest were included in the lottery draw, which was overseen by a third-party fairness monitor. The AGCO has notified the following 42 selected applicants that they may now apply for a cannabis Retail Operator Licence and a Retail Store Authorization. Applicants have until August 28, 2019 to do so, at which point the AGCO will undertake its full eligibility and licensing review. The AGCO will only licence applicants and authorize stores that meet all legal and regulatory requirements.SELECTED APPLICANTS AND THEIR PROPOSED STORE LOCATIONSEast Region:GTA Region:North Region:Toronto Region:West Region:ADDITIONAL INFORMATIONAllocation lottery resultsSummary of lottery entries received by regionCannabis Retail Store Allocation Lottery RulesRegistrar’s Standards for Cannabis Retail StoresAbout the AGCO
The Alcohol and Gaming Commission of Ontario (AGCO) is an Ontario provincial regulatory agency reporting to the Ministry of the Attorney General (MAG). The agency was established on February 23, 1998 under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996.
The AGCO is responsible for regulating the alcohol, lottery and gaming, horse racing and private cannabis retail sectors in accordance with the principles of honesty and integrity, and in the public interest.Media Contact:
Raymond Kahnert, Senior Advisor, Communications
(416) 326-3202, media@agco.ca 
FACT SHEETOn July 3, 2019, the Government of Ontario announced 50 new cannabis retail store authorizations would be made available. Of these 50 new stores, the AGCO will allocate up to 42 authorizations to applicants selected by lottery and eight to stores on First Nations reserves.Applicants who wished to participate in this lottery had to meet pre-qualification requirements, including confirmation from a bank, credit union, or caisse populaire that the applicant has the financial capacity to obtain $250,000 in cash or cash equivalents; confirmation from a bank, credit union, or caisse populaire that the applicant can obtain a Standby Letter of Credit in the amount of $50,000 within five business days of being notified of their selection; confirmation that the applicant has secured a suitable retail space, which will be available to them for operating a cannabis retail store no later than October 2019The required bank letters were provided to the lottery applicants by over 25 banking institutionsOnce the AGCO receives Retail Store Authorization applications from those selected in the lottery, residents of the community in which a store is proposed to be located will have an opportunity to provide written submissions if they believe the location of the store is not in the public interest, as defined by Ontario Regulation 468/18 made under the Cannabis Licence Act, 2018It is anticipated that stores will begin to open starting in October 2019, as they are readyThe AGCO has placed the applicants not selected in the lottery on Wait Lists for each Region, based on the order in which they were drawn. Applicants on the Wait List will be moved to the selected list if those ahead of them are found to be ineligible for a licence/authorization or are otherwise disqualifiedIn the future, if the Government proceeds with additional retail store allocations before moving to an open marketplace, any such allocations may be based on the results from this lottery

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904954/0/en/AGCO-releases-results-of-the-second-cannabis-lottery-42-applicants-notified-to-apply-for-a-cannabis-Retail-Store-Authorization-in-Ontario.html?f=22&fvtc=5&fvtv=41223728

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Infinity Supercritical Announces SDR Model X For Continuous Feed Hemp Oil Processing

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MADISON, Wis., Aug. 21, 2019 (GLOBE NEWSWIRE) — Infinity Supercritical LLC is introducing its industrial scale hemp oil processors that use water to extract full spectrum oil in under a second. Our modular botanical oil processors can extract oil from your organic hemp, with a capacity of 10,000 lbs to 100,000 lbs per day. The continuous feed process is the only in the industry that uses water as the solvent, to produce a eco-extracted oil, that can be labeled with organic and green branding.
Less than 10 percent of the 2019 hemp crop will be processed at fall harvest from the lack of botanical extractors. Based on the deluge of calls we get from farmers, wanna-be processors, and equity groups, there will be a huge bottleneck at this years fall hemp harvest.Hemp became Federally legal in 2019, which had farmers scrambling to get crops in the ground, many at the last minute in late spring. The lack of coordinated state regulation nationwide has resulted in a patch-work of states under cultivation, some more than ten-fold increase in acreage planted from last year.While many smaller fly-by-night processors turn to ethanol extraction. If not done properly, it produces a poor quality full spectrum hemp CBD oil. A full spectrum oil provides the most benefits to the body. Many operators choose to use activated carbon to filter out the green bitter tasting chlorophyll, which unfortunately also filters out the CBDs. The consumer may not know the difference when purchasing full spectrum oil, aside from being turned off from lackluster results.The result? Much of the hemp crop will go unprocessed, and some will go into long term storage and degrade.Infinity Supercritical LLC offers innovative one-touch processing technology using water as the solvent, and a visionary future for clean and quality full spectrum hemp CBD oil extraction.  Please visit https://sonicextractor.com for more information.G. Giese | CEO | Infinity Supercritical LLC | greg@infinitysupercritical.com

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904928/0/en/Infinity-Supercritical-Announces-SDR-Model-X-For-Continuous-Feed-Hemp-Oil-Processing.html?f=22&fvtc=5&fvtv=41223728

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