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CROP Infrastructure Corp. (CSE:CROP, OTC:CRXPF) announced today that its subsidiary, Elite Ventures Group LLC, has signed a 3-year lease agreement for 800 additional acres of turn key pivot-irrigated agricultural property.
CROP Infrastructure Corp. (CSE:CROP, OTC:CRXPF) announced today that its subsidiary, Elite Ventures Group LLC, has signed a 3-year lease agreement for 800 additional acres of turn key pivot-irrigated agricultural property. The lease cost will be $550 USD per acre in 2019 and $700 USD per acre 2020 forward, paid quarterly commencing in March 2019. The property is in close proximity to CROP’s existing 1,065-acre Hemp CBD Farm in Nye County Nevada.
The combined Nevada properties, including the original one of 315 acres, have a total pivoted area of 1,340 acres but will require the installation of additional pivots and water wheels at a cost of $300,000 USD. Seasonal fertilizer, planting and seed costs are not expected to exceed $600,000 USD. All harvesting and commercial drying equipment have been paid for during the 2018 season.
According to cannabis industry analysts the Brightfield Group, it is estimated the hemp-CBD market alone could hit $22 billion by 2022.
The two existing strains planted during the 2018 season with approximately 12-19% CBD will be planted for 2019 along with 3 additional genetics in the same range of CBD. The farm will be planted and maintained to be organic to ensure the end product is to the specification of interested buyers.
CROP CEO, Michael Yorke, stated: “CROP is preparing for the upcoming Hemp Farming Act of 2018 which would remove hemp’s controlled substance designation, thus legalizing the crop under federal law, and allowing CBD isolate to be sold across all 50 states and exported internationally. As we enter the next phase of project development in Nevada we look forward to building our GMP extraction facility and introducing our made in America CBD Isolate to infuse in to our recently announced CannaDrink beverages and licensed topical lines.”
Yorke concluded: “CROP has the largest real estate foot print in Nevada dedicated to hemp-CBD. Once the additional upgrades are completed, we anticipate that our tenant and brand licensee will have 1,340 acres under irrigation. With two crops expected annually in 2019 we foresee a harvest potential of approximately 2,680,000 lbs of CBD flower. We expect to comfortably use funds from our 2018 harvest (next 30-60 days) to organically grow into the projects new foot print.”
CROP Nevada Hemp Initiatives For 2019
- Develop 300 acres additional pivots on newly leased land as per announced as per August 22, 2018
- Planting of 1,340 acres of High CBD Hemp strains
- Initial 1-ton per day processing capability GMP ISO 9000 extraction facility for pharmaceutical grade CBD
Hemp Farming Act of 2018
The Bill, supported by Senate Majority Leader Mitch McConnell, is awaiting congressional approval, which would replace the 2017 Farm Bill, which expires on September 30th. The full legalization of hemp would open the door for investment and provide access to a full range of financial, market development and advisory services that have been unavailable because of its classification as a controlled substance. These services would include small business loans (SBA’s), federal crop insurance, access to banking, USDA research.
About CROP
Crop Infrastructure Corp. is publicly listed on the Canadian Securities Exchange and trades under the symbol “CROP” and in the US under the symbol “CRXPF”. CROP is primarily 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 cultivation properties in California and Washington State, Nevada, Italy, Jamaica and a joint venture on West Hollywood and San Bernardino dispensary applications. CROP has developed a portfolio of assets including Canna Drink a cannabis infused functional beverage, US and Italian distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands.
Company Contact
Michael Yorke – CEO & Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
Disclaimer for Forward-Looking Information
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”, “potential” ,“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.
The CSE has not reviewed, approved or disapproved the content of this press release.
Source: globenewswire.com
