VANCOUVER, British Columbia, June 25, 2018 (GLOBE NEWSWIRE) -- CROP Infrastructure Corp.(CSE:CROP) (OTC:CRXPF) (“CROP” or the “Company”) announces today it has entered into a loan agreement with Elite Ventures Group, LLC of Nevada to purchase a Nye County agricultural property with the intention of forming a joint venture development agreement for Hemp & Cannabis infrastructure. The Company has agreed to finance the Nevada project and has forwarded an initial cash commitment of $100,000 USD into escrow.
The Nye County agricultural property is in Central Nevada and was selected for its temperate climate which is ideal for greenhouse growing. The property spans over 315 acres and includes 300 acres of private water rights, with 240 acres under automatic irrigation pivots that have automatic fertilizer injection systems installed. Once licensed for hemp and cannabis, the pivots would be seeded with feminized auto flowering seeds for both THC and CBD crops. The Company’s potential cultivation infrastructure consultant believes the pivots would allow for three turns per year that would supply an abundant feedstock for the creation of both CBD and THC distillates. The property will have 50 acres set aside for building cannabis specific greenhouses. The first phase of the project development is expected to cost about $700,000 USD to seed the 240 acres with the automatic watering pivots. The acquisition is subject to a due diligence period of 45 days.
Gillian Flaccus, of The Associated Press, pointed out in the article titled Oregon marijuana growers diversify with hemp (May 14, 2018) that “In its purified distilled form, CBD oil commands thousands of dollars per kilogram, and farmers can make more than $100,000 an acre growing hemp plants to produce it.”
Nevada Hemp / CBD Industry:
Nevada has allowed hemp cultivation /production since 2016 and does not require hemp processing licenses. Under the provisions of Nevada Senate Bill 396, industrial hemp products intended for human consumption, like cannabidiol (CBD oil), can be sold in marijuana dispensaries throughout Nevada. Cannabidiol CBD products in Nevada are available for purchase over-the-counter and without a prescription. CBD is extracted from industrial hemp and because all hemp products have been made available, CBD is legal in Nevada. Industrial hemp is a variety of the Cannabis Sativa L. plant species. The terms hemp, cannabis, and marijuana all refer to the same species. Industrial hemp and marijuana are two different subspecies. One of the biggest difference is that industrial hemp has a minuscule THC content under > .3% whereas marijuana can contain a staggering 28% THC. THC is the psychotropic chemical found in cannabis meaning that industrial hemp does not share the familiar psychotropic qualities that marijuana is known for.
Nevada allows hemp production for:
- Seed or seed oil
- Cannabidiol CBD
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, states: “With cannabis infrastructure in California, Washington, CROP is expanding its footprint and operations in some of the largest legal markets throughout the US. This property, which has abundant water rights, already has 240 acres of existing irrigation infrastructure offering a turn-key solution suitable for Hemp and Cannabis growers. The company is looking to partner with a licensed hemp grower immediately, and further invest in CBD extraction infrastructure”
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 and Washington State.
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.
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