VANCOUVER, BC – October 9, 2025 – Global Hemp Group Inc. (OTC Pink: GBHPF), a company focused on industrial hemp and health & wellness sectors, today announced a critical two-pronged strategy to address a persistent failure-to-file cease trade order (FFCTO). The company has applied to the British Columbia Securities Commission (BCSC) for a partial revocation order and simultaneously unveiled plans for a non-brokered private placement financing. These urgent measures are designed to secure vital capital, resolve outstanding compliance issues, and ultimately pave the way for the reinstatement of its common shares for trading on the Canadian Securities Exchange (CSE).

This decisive action comes as Global Hemp Group (CSE: GHG) grapples with an FFCTO issued on April 15, 2025, which has significantly hampered its operations and investor confidence. The success of this financing and the granting of the partial revocation order are paramount to the company's ability to regain good standing with regulators and continue its business operations in the evolving hemp commodity market.

Addressing the Cease Trade Order: A Path to Reinstatement

The genesis of Global Hemp Group's current predicament dates back to April 15, 2025, when the BCSC imposed a failure-to-file cease trade order. This order was a direct consequence of the company's inability to file required continuous disclosure documents within the stipulated timeframes under applicable securities laws. The FFCTO effectively froze trading in the company's securities for its officers, directors, and insiders, creating a significant operational and financial challenge.

In response, on October 9, 2025, Global Hemp Group formally applied to the BCSC for a partial revocation of this order. The primary objective of this partial revocation is to facilitate the completion of its proposed non-brokered private placement financing, which is crucial for recapitalizing the company. Should the partial revocation be granted, it would allow the financing to proceed, providing the much-needed funds to address the underlying issues. Following the successful completion of the financing and the subsequent filing of all outstanding financial statements and continuous disclosure records, Global Hemp Group intends to pursue a full revocation of the FFCTO and seek the reinstatement of its common shares for public trading on the Canadian Securities Exchange. The BCSC's decision on the partial revocation is keenly awaited, as it represents the immediate hurdle for the company.

The proposed financing plan involves the issuance of up to 16,000,000 units at a price of $0.025 per unit, aiming to raise aggregate gross proceeds of approximately $400,000. Each unit will comprise one common share and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share at an exercise price of $0.05 per share for a period of five years. The proceeds from this capital raise are earmarked for critical expenditures, including the payment of fees to auditors, accountants, and other service providers, covering audit, accounting, legal, and filing fees associated with preparing and submitting all outstanding documents, fulfilling operational and contractual commitments, and satisfying ongoing operating expenses to ensure the continuity of the company’s business. All securities issued under this financing will be subject to a four-month-and-one-day hold period, and investors will be explicitly informed that these securities remain subject to the FFCTO until a full revocation is granted.

Implications for Global Hemp Group and the Broader Market

For Global Hemp Group (CSE: GHG), the successful execution of this financing plan and the granting of both partial and full revocation orders are existential. The capital infusion is vital for clearing its compliance backlog and stabilizing its financial position. Failure to secure the partial revocation and complete the financing could lead to a prolonged trading suspension, further erosion of investor confidence, and potentially jeopardize the company's long-term viability. Conversely, a successful outcome would allow Global Hemp Group to resume normal operations, regain market access, and continue its strategic initiatives in industrial hemp (focusing on environmental applications like construction and bio-energy) and health & wellness (biopharma, intellectual property acquisition).

While this event primarily impacts Global Hemp Group directly, it serves as a salient reminder of the regulatory challenges and capital constraints often faced by smaller players in the burgeoning hemp commodity market. The broader hemp industry, still in its relatively nascent stages compared to other agricultural and pharmaceutical sectors, often sees companies struggling with consistent funding and the rigorous demands of public company compliance. Global Hemp Group's situation underscores the importance of robust financial management and timely disclosure, lessons that resonate across the sector, particularly for companies operating in emerging and often capital-intensive markets. The market, in general, will likely view the outcome as a bellwether for how regulatory bodies handle compliance issues in the cannabis and hemp space, potentially influencing investor sentiment towards other similarly positioned companies.

Wider Significance in an Evolving Industry

Global Hemp Group's current challenges fit into a broader industry trend where emerging sectors, particularly those with complex regulatory landscapes like hemp and cannabis, often face heightened scrutiny regarding compliance and governance. The FFCTO against Global Hemp Group highlights the critical importance of continuous disclosure, a cornerstone of investor protection and market integrity. This event could prompt increased diligence from investors and regulators alike, demanding greater transparency and adherence to reporting standards across the hemp sector.

Potential ripple effects could see investors applying more stringent due diligence to other small-cap hemp companies, scrutinizing their financial health and compliance track records more closely. Partners and suppliers might also re-evaluate their engagement with companies facing similar regulatory hurdles. From a regulatory perspective, the BCSC's actions reinforce its role as a watchdog, ensuring that public companies meet their obligations regardless of sector. This situation serves as a historical precedent for the consequences of non-compliance in a growing industry, drawing parallels to challenges faced by other innovative but under-resourced sectors in their early stages of development. It underscores the ongoing maturation of the hemp market, where operational excellence must increasingly be matched by robust corporate governance.

What Comes Next: A Critical Juncture for Global Hemp Group

The immediate future for Global Hemp Group hinges on the BCSC's decision regarding the partial revocation order. A swift approval would enable the company to proceed with its non-brokered private placement, providing the much-needed capital injection. Following successful financing, the focus will shift to diligently preparing and filing all outstanding continuous disclosure documents. This will be a significant undertaking, requiring meticulous attention to detail and adherence to regulatory requirements.

In the short term, successful completion of these steps will allow Global Hemp Group to apply for a full revocation of the FFCTO and seek reinstatement of trading on the Canadian Securities Exchange. This would be a crucial strategic pivot, allowing the company to re-engage with the public markets and pursue its business objectives unhindered. Long-term possibilities include leveraging the newfound stability to advance its industrial hemp projects and health & wellness initiatives. However, market opportunities and challenges will undoubtedly emerge, including the need to rebuild investor confidence and navigate a competitive landscape. Potential scenarios range from a successful turnaround, leading to renewed growth, to protracted delays if the BCSC's decisions or financing efforts encounter unforeseen obstacles.

Comprehensive Wrap-Up and Investor Outlook

Global Hemp Group's application for a partial revocation order and its proposed financing plan mark a pivotal moment for the company. These proactive steps are a direct response to a failure-to-file cease trade order and represent a determined effort to resolve compliance issues and secure essential funding. The key takeaway is that the company is actively working to rectify its regulatory standing and ensure business continuity, a positive signal in the face of significant challenges.

Moving forward, the market will closely monitor several critical developments. Investors should watch for the BCSC's decision on the partial revocation order, the successful completion of the $400,000 private placement, and, crucially, the timely filing of all outstanding financial statements and continuous disclosure documents. The ultimate goal remains the full revocation of the cease trade order and the reinstatement of Global Hemp Group's common shares for trading on the CSE. The outcome of this situation will not only determine the future trajectory of Global Hemp Group but may also offer broader insights into the regulatory environment and capital markets for companies operating in the dynamic hemp industry.

This content is intended for informational purposes only and is not financial advice