CROP Infrastructure Corp. (CSE: CROP) (OTC: CIICF) announces that it has entered into a Membership Purchase Agreement dated May 7th 2018 (the “Agreement”) with HUMBOLDT HOLDINGS LLC (“Humboldt”), a limited liability company incorporated under the laws of State of California, whereby the Company has agreed to advance up to US$2,000,000 to Humboldt for land and equipment purchased and the development of a 30,000 square foot greenhouse project intended for lease and brand licensing by Humboldt to licensed cannabis tenant growers (each, “Tenant”) in return for a 30% interest in Humboldt.
The property currently consists of a 10,000 square foot existing cannabis greenhouse and has an existing building permit for the development of an additional 20,000 square feet of canopy. Humboldt intends to lease the property/infrastructure and license its branding to the Tenants. Humboldt also intends to commence construction of additional proprietary greenhouses consisting of 20,000 square feet of canopy. Once completed, the estimated Tenant production is expected to be approximately 2,000 pounds of flower per month. The closing of the transactions contemplated under the Agreement constitute a “Significant Transaction” in accordance with the policies of the Canadian Securities Exchange. To date, the Company has advanced US$1,278,950 and has earned a 30% interest in Humboldt.
The Hempire Company LLC of California is the holder of a 10,000 sqft medical marijuana cultivation license and a 20,000 sqft RRR license and is currently negotiating a tenancy agreement with Humboldt to lease the property and infrastructure and has already commenced cultivation in good faith.
CROP director N. Alex Horsley states, “This acquisition represents our entry into California, the largest cannabis market in the world. Work is now underway on Humboldt’s facility to expand the greenhouse facility to 30,000 square feet of canopy with our new state-of-the-art greenhouse design. CROP continues to aggressively pursue new opportunities to expand its portfolio of tenant growers and infrastructure assets in strategic licensed jurisdictions.”
Pursuant to the terms of the Agreement, the Company has agreed to advance up to US$2,000,000 pursuant to an interest free loan which is repayable through 60% of the net after tax profits of Humboldt. As further incentive for advancement of the loan, the Company was issued a 30% membership interest in Humboldt which is governed by the terms of an operating agreement.
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