16:39:39 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Crop Infrastructure Corp
Symbol CROP
Shares Issued 117,576,278
Close 2018-10-23 C$ 0.365
Market Cap C$ 42,915,341
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Crop's Hempire signs three-year CBD flower supply deal

2018-10-23 09:53 ET - News Release

Mr. Michael Yorke reports

CROP ANNOUNCES MAJOR 1.5 MILLION POUND 3-YEAR SUPPLY AGREEMENT

Hempire, Crop Infrastructure Corp.'s brand and tenant at its 49-per-cent-owned Nevada CBD (cannabidiol) farm, has signed a three-year, 500,000-pound-per-year (1.5 million pounds total) supply agreement with deliveries starting August, 2019.

The CBD flower is to be delivered in shipments of 50,000 dry pounds on a bimonthly basis with payment to be made of $36 (U.S.) per pound to $57 (U.S.) per pound plus the cost of delivery depending on the CBD content indicated by the certificate of analysis. If market conditions change adversely in favour of, or against, the company, the contract stipulates that prices will not fluctuate more than 25 per cent over, or below, the range of $36 to $57 per pound.

The Brightfield Group, a cannabis industry analyst, estimates the hemp-CBD market alone could reach $22-billion by 2022.

Crop Infrastructure chief executive officer Michael Yorke stated: "This is our first major supply contract and we have been extremely encouraged by the number of interested off-takers that have contacted us about our 2019 CBD crop as all of our 2018 harvest will be used to produce CBD isolate.

"With Crop's footprint now consisting of 1,865 acres with 1,340 acres of water rights under pivot, as announced on Sept. 24, we estimated 2019 tenant production at the Nevada CBD farm will be approximately 2.68 million pounds, making this one supply agreement less than one-fifth of the total 2019 estimated production the Nevada CBD farms."

The two existing strains planted during the 2018 season with up to 19 per cent CBD will be planted for 2019, along with three additional strains with similar CBD concentrations. The farm will be planted and maintained to organic standards to ensure the hemp-CBD is to the specification of interested buyers.

About Crop Infrastructure Corp.

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, two in Washington State, a 1,000-acre Nevada cannabis farm, a 1,865-acre CBD farm, extraction in Nevada with international focuses in Jamaica and Italy, 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; U.S. and Italian distribution rights to over 55 cannabis topical products; and a portfolio of 16 cannabis brands.

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