NICI Quick Take
Founded in 2017, Third Wave Farms is a Huntington Beach, California, industrial hemp company. The company develops industrial hemp genetics designed for large-scale agricultural production of CBD, CBG, grain, and fiber. Third Wave also invests in drone technology that collects thermal images of the crops, collecting crop moisture data and providing feedback to customers.
Third Wave also offers agricultural services in the form of a sharecropping agreement. Under this contract farming model, Third Wave enters a one-year land lease with a customer’s farm and plant its seeds in the customer’s fields. Third Wave supplies the farming team and resident manager to oversee the crop through its growth cycle and harvest, then shares the profits. For those that already grow hemp, Third Wave can provide a full spectrum of toll services, including machine harvesting biomass, hand-harvesting flower, environmentally controlled drying, and compliance/quality testing, milling, packing, and storing.
In October 2019, Third Wave opened its first hemp drying and processing facility inside a 22,000 square foot building in Kokomo, Indiana. This is anticipated to process and dry around 4,000 acres of hemp grown by up to 50 producers.
Third Wave wishes to raise $70 to $100 million in funding before going public later this year or in 2021. Currently, it’s raised about $3.8 million in cash and $1.8 million in debt. Co-founders Trent Paasch and Mike Lewis both come from farming families, but farming is truly in Lewis’ blood and his experience and vision for the industry will no doubt entice additional investors. By 2014, Lewis was farming hemp and developing rules for the Kentucky Pilot Program as a member of the Kentucky Hemp Commission. He went on to win multiple awards for his work in agriculture and farming, and will no doubt enhance the efficiency of the company’s operations.
|NICI Subsector||Cultivator & Processor|