Breaking News: Crop Acquires 49% Interest in Nevada Farm and Begins Land Prep for CBD Based Industrial Hemp on 120 Acres

CROP Infrastructure Corp. (OTC: CRXPF) (CSE: CROP) 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.

Market considerations

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. ”

 

 

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