$100 Million LoneStar Life Sciences OZ Fund LLC launches seeking Accredited Investors for Indoor Growing of Hops in Rural Texas Agricultural Opportunity Zones

·8 min read

The Fund is raising a Series A Round.

AUSTIN, Texas, Aug. 3, 2021 /PRNewswire-PRWeb/ -- $100 Million LoneStar Life Sciences OZ Fund LLC (the "Fund") launches seeking Accredited investors for an investment in indoor growing facilities for hops and other crops along with sales of related products from rural agricultural opportunity zones near Lockhart and San Marcos Texas. The Fund will invest substantially all of the net proceeds of the offering in an affiliated operating company, LoneStar AgriTech, LLC ("LoneStar AgriTech"), who is on a mission to build and manage one million square feet of the most advanced indoor controlled environment greenhouse facilities in Texas. The initial focus will be on growing and harvesting high margin fresh hops for sale to breweries and the extraction of Xanthohumol for medicinal/nutraceutical purposes. The indoor facilities will provide highly automated and computer-controlled environments to maximize plant growth and yield while setting a new standard for responsible low-power, carbon-negative companies. Using the hops as the profitability foundation, future expansion into additional crops are expected to include cannabis, commercial hemp, and other certain food crops that would benefit from the high-yield potential of the indoor growing facilities.

Using advanced Environmental Management Systems (EMS) to control atmosphere, humidity, temperature, and nutrition, and establishing climate change related sustainability standards such as water conservation (recapture, recycle, reuse) and renewable energy, LoneStar AgriTech is in position to create an incommensurate market advantage in year-round production of hops and eventually other food stock or medicinal-use species.

"We are excited to be working with industry leading international companies like BW-Global and Cultivatd to design and manage one of the most advanced 1,000,000 sq. ft. greenhouse facilities in the world which includes both energy-efficient and water-saving technologies," said Matt Atwood, principal of the Fund and President of LoneStar Life Sciences, Inc. ("LoneStar Life Sciences"), an affiliated entity focused on various life sciences projects and parent company of LoneStar AgriTech.

As a Qualified Opportunity Zone Fund (QOZF), the Fund looks to solve the severe shortage and seasonal growing dilemmas of hops and other opportunistic crops while spurring economic development in opportunity zones while providing tax benefits and attractive investment returns to investors.

Investors can defer tax on any eligible gains invested in a QOZF until the earlier of the date on which the investment in a QOZF is sold or exchanged. Taxpayers may defer paying tax on capital gains, if such capital gains are invested in a QOZF, within 180 days from realizing the gain. The deferral period ends the earlier of when the taxpayer sells its interest in the QOZF or December 20, 2026. Investments held for 5 years prior to December 31, 2026, will also qualify for a 10% increase in the tax-payer's tax basis of the amount of the deferred gain. Any taxpayer that holds its investment for a minimum of 10 years, can achieve no capital gain tax on the appreciation of its investment.

LoneStar AgriTech is expected to work in two phases with the proceeds of the offering:

LoneStar AgriTech Hops Production

Phase 1 will include land acquisition, infrastructure, sustainable low carbon utilities, and the build out of one million square feet of 5th generation greenhouses with advanced water saving hydroponics and full-spectrum power saving LED technologies.

Hops for Beer: Texas produces the 3rd most barrels of beer in the US behind California and Pennsylvania. Texas farmers provide locally grown wheat, barley, and malt, but cannot grow hops, the flavor component in beer making. Currently, all hops sold in Texas must be purchased from the pacific northwest (Washington, Idaho and Oregon) as dried and pressed hops pellets. Hops cannot grow outdoors in Texas due to the high temperature climate and low water conditions - until now. LoneStar AgriTech is about to completely disrupt the commercial hops industry by becoming the first large capacity commercial grower of hops in the state of Texas. Using the latest technologies in controlled indoor cultivation, LoneStar AgriTech is also expected to be the first commercial hops grower in the world to produce large capacity fresh hops every month as a controlled rotational harvest - not once a year like outdoor hops.

Watch LoneStar AgriTech hops video here: https://vimeo.com/313555492

According to Atwood, "Inconsistent weather patterns can create the ultimate nightmare domino effect when it comes to growing plants. Due to climate change, the Pacific Northwest has suffered record breaking heat waves and drought this year (2021). Brutal weather patterns force plants into "survival mode" which triggers low yields and low-quality hops. This issue creates even a bigger problem for beer makers relying on consistent flavor profiles for their craft beer. If beer makers lose beer flavor due to low quality hops, they lose loyal customers."

Atwood offers a fix. "With our advanced electronically controlled environment systems, we completely remove the unpredictable temperament of mother nature from the equation making our hops "climate change proof". With our greenhouses, we can produce the same amount of hops year-round in 20 acres that a full production hops yard can do in 800 acres outdoors. Not only that, we can maintain a higher consistency in yield and quality but use only 10-20% of the water requirements an outdoor crop would use because our hydroponic system recaptures and recycles the nutrient rich water. This makes our agricultural solution much more efficient and sustainable, even in an environment hops wouldn't normally have a chance to grow in - like Texas. Nobody in the world has done what we are about to do, especially on a scale that can literally flip an entire industry on its' ear."

Hops for Healthcare: Hops is a cousin plant to cannabis (in the same family), but without the psychoactive effects. The phytocompound Xanthohumol ("XN"), a polyphenol-flavonoid found only in the hops flower, has been scientifically proven through peer reviewed research to kill over 60 different cancers and also treat neurological disorders, chronic pain, auto-immune dis-orders, diabetes, heart disease, allergies, asthma and obesity without the risk of addiction or toxic side effects. Currently, there are no manufacturers of medical grade XN in North America, and a German supplier being used currently sells XN for $26,000US per liter. LoneStar AgriTech is expected to add a full capacity hops processing facility and pharmaceutical grade extraction laboratory to manufacture phytobiotic compounds (such as XN) and other phytochemicals in Phase 2.

Watch the Xanthohumol video here: https://vimeo.com/313567811

What sets LoneStar Life Sciences, Inc. apart are its collaborations with experienced and well-respected international companies combined with the educational and research aspect of local universities including Texas A&M, University Texas at Austin, and Texas State University at San Marcos. These university relationships are expected to be leveraged by offering programs for school credit or internship opportunities for greenhouse cultivation, engineering, green-power software development, controlled environment training, certifications, and leadership development for LoneStar's "Farmers of the Future" programs.

The indoor hops project will seek to provide a collaborative platform for American and International companies to develop Earth saving, sustainable, renewable power & water technologies, carbon credit strategies. In addition, LoneStar will provide high-paying jobs, career training and leadership qualities for eligible low income rural communities in the designated central Texas Opportunity Zone area.

Atwood closes with, "This hops project is just the beginning. Once we get our hops production up and running, our goal is to take what we learn here and expand our technology into other opportunities like vertical year-round food production, cannabis, and other agricultural projects like algae and plant-based proteins. In my opinion, this "farmer of the future" model is the only way we can create sustainable and environmentally responsible agriculture. We are extremely excited to launch this Opportunity Zone Fund. This OZ program allows us to expand our projects much faster than we ever could have with traditional investor models."


LoneStar Life Sciences OZ Fund LLC
Matt Atwood CEO
EMAIL: matt.a@lonestaroz.com
CALL: 832-852-3489

This Fund is 3rd Party Administered by OZ Invested

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you that such statements are simply predictions and actual events, or results may differ materially. These statements reflect our current expectations, and we do not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any pro-jected results expressed or implied in this, or other statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from the forward-looking statements. This is not an offer to sell Units in the Fund. Any sale of Units will be made solely in connection with the Confidential Private Placement Memorandum of the Fund and related documents. The Confidential Private Placement Memorandum includes important risks, uncertainties, and certain conflicts of interest, many of which are beyond our control, that could impact an investment in the Fund.

Media Contact

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SOURCE LoneStar Life Sciences OZ Fund LLC

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