Maclear Project Agrohemp
- Written by
- Just P2P
- •
- Updated July 13, 2025
Score B-
Agrohemp EOOD, founded in 2024 in Bulgaria, develops an integrated industrial hemp supply chain for the production of fibers and shives intended for construction, textiles, and bioplastics. The company holds a license for hemp cultivation in compliance with European and Bulgarian regulations, positioning itself in the rapidly growing industrial hemp market.
The company seeks to finance the procurement, logistics, and processing of 2,013 tons of hemp straw through a strategic partnership with HempFlax Romania. This funding will enable the company to fulfill existing contracts worth 598.6 K€ with established clients (Rohemp GmbH, South Hemp Tecno s.r.l., HempFlax Building Solutions), increasing production capacity from 780 tons to 2,780 tons/year.
Investment terms
Loan requested : 350,000 €
Period : 14 months
Interest rate : 14.8%
Loan requested : Equity investment by founder/CEO (400 K€)
The loan amount reflects the substantial capital requirements for hemp processing operations in a sector experiencing robust growth, with the European industrial hemp market projected to reach €2.89 billion by 2028. The founder’s significant 400,000 € equity contribution demonstrates strong commitment and provides substantial protection for lenders.
Risk metrics
Debt/Equity Ratio : 1.46 (Medium risk)
LTV (Loan to Value) : 145% (High risk)
Credit History Score : 8/10 (Good creditworthiness)
The risk profile presents mixed signals with moderate leverage offset by concerning collateral coverage. The debt-to-equity ratio of 1.46 falls within acceptable medium-risk parameters, indicating reasonable financial structure for a growth-stage company.
However, the LTV of 145% significantly exceeds conservative thresholds, reflecting the asset-light nature of hemp processing operations and reliance on inventory-based collateral. The credit history score of 8/10 provides reassurance about financial discipline, but remains limited in terms of track record given the company’s recent creation.
Business profile
Geographic Location : Bulgaria (EU member state)
Industry Sector : Agriculture (Industrial Hemp)
Collateral Type : Equipment/Company assets
Bulgaria’s geographic location provides significant cost advantages for hemp cultivation through favorable agricultural conditions and competitive labor costs, while EU membership ensures regulatory alignment and market access. The industrial hemp sector benefits from strong European policy support through the Green Deal initiative, with demand driven by sustainable construction, automotive composites, and bioplastics applications.
The 238,500 € collateral comprises specialized agricultural equipment (tractors, harvesters, processing machinery), but coverage remains limited relative to the loan size. The company’s innovative response to local processing restrictions through cross-border partnership with HempFlax Romania demonstrates operational adaptability to regulations.
Strenghts / Weaknesses
Strenghts
- EU hemp market growth (11.7% CAGR)
- Secured demand / Existing contracts (€598.6K)
- Regulatory certainty (Government license)
- Strategic partnership with HempFlax Romania
- Experienced founder with €400,000 contribution
- Asset-backed business model with tangible collateral
- Compliance with EU regulatory framework
- Scalable model: production and third-party sourcing
Weaknesses
- Limited operational history
- High LTV ratio / limited collateral coverage
- Dependence on cross-border processing
- Agricultural commodity price volatility
- Emerging sector (regulatory risk)
- Concentration with limited client base
- Working capital-intensive business model
Opinion on Agrohemp
The B- rating reflects an opportunistic investment profile in the rapidly growing European industrial hemp sector. The company benefits from secured contracts (598.6 K€), substantial founder financial commitment (400,000 €), and a strategic partnership with HempFlax that ensures access to processing despite local restrictions.
The main risks include a high LTV ratio (145%) and limited operational history since its 2024 creation. However, the valid regulatory license, contracted demand, and positioning in an expanding market (11.7% CAGR) offer solid growth prospects for investors accepting a medium risk level.
