Crop Acquires 49% Interest in Nevada Farm and Begins Land Prep for CBD Based Industrial Hemp on 120 Acres
VANCOUVER, British Columbia, July 06, 2018 — CROP Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) (“CROP” or the “Company”) announced today it has entered into a member interest purchase agreement with Elite Ventures LLC, of Nevada, to acquire a 49% member interest in a Nye County agricultural property. The company has agreed to pay $1,300,000 USD, in cash, for the member interest and has paid $600,000 to date.
The Nye County agricultural property is in central Nevada and was selected for its temperate climate which is ideal for greenhouse and outdoor growing. The property totals over 315 acres and includes 300 acres of private water rights, with 240 acres under automatic irrigation pivots that also have automatic fertilizer injection systems installed.
The company’s tenant has negotiated a contractor to clear 1 pivot of 120 acres and begin tilling the area at a cost of $16,920.00. Once clear the pivot will be planted with ~900,000 seeds of high CBD strain of hemp at a cost of $90,000. The genetics selected will have a THC content of <0.3% and a CBD content of >15%. It is estimated that the 120-acre first pivot will yield 120,000 pounds of flower. It is expected the water, labor and fertilizer cost for this crop should not exceed $60,000. The company anticipates the planting to take place prior to July 15th and expects an early fall harvest.
Nevada hemp growers surveyed by Marijuana Business Daily report that the market is fetching:
- $200 or more per pound for flower, depending on CBD content and quality
- About $10 per pound of food-grade seed, or $45 per gallon for seed oil
- About $200 per ton of baled fiber
- About $10,000 per Kg of CBD isolate
CROP Infrastructure Director & CEO, Michael Yorke, stated: “We are extremely pleased with how quickly our team and tenant have worked together to advance this project. From internal study to commencing production, they have done a great job. With cannabis infrastructure in Italy, California and Washington, CROP is expanding its footprint and operations in some of the largest legal markets throughout the US and beyond. ”
Crop Infrastructure Corp. is publicly listed on the Canadian Securities Exchange and trades under the symbol “CROP”. CROP is engaged in the business of investing, constructing, owning and leasing greenhouse projects as part of the provision of turnkey real estate solutions for lease-to-licensed cannabis producers and processors offering best-in-class operations. The Company’s portfolio of projects includes licensed greenhouse facilities in California. Nevada, Washington State and Italy.
Disclaimer for Forward-Looking Information
Certain statements in this press release related to the Offering, the securities issuable thereunder and the Transaction are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect.These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the expected yield from The Nye Property; the technological effects of The Nye Property on production; the intention to expand its portfolio; and execute on its business plan. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the regulatory and legal framework regarding the cannabis industry in general among all levels of government and zoning; risks associated with applicable securities laws and stock exchange rules relating to the cannabis industry; risks associated with maintaining its interests in its various assets; the ability of the Company to finance operations and execute its business plan and other factors beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.