CFN Media – Correction of CFN Press Release Due to Forward Looking Financial Projections
SEATLLE, July 24, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering CROP Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) which specializes in providing turnkey greenhouse projects to licensed cannabis producers and processors. The cannabis industry is projected to exceed $50 billion by 2026, according to Cowen & Co., driven by the legalization of medical and adult-use cannabis across a growing number of states. While many investors are flocking towards cultivation and retail companies, there are still significant risk factors for those touching the drug. Investors may want to instead look towards real estate focused companies that offer exposure without as much risk.
CROP Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) specializes in providing turnkey greenhouse projects to licensed cannabis producers and processors. The template for these state-of-the-art greenhouse projects is “The Dozen” project in Washington State, where the company is building twelve 3,640 sq. ft. greenhouses capable of producing over 2,000 pounds per month of cannabis.
Building Up Infrastructure
CROP Infrastructure has been making steady progress in bringing its greenhouse ambitions to life. In mid-March, the company announced that six of the twelve greenhouses at The Dozen were under construction and it intends to move on to the second phase of development over the near-term. Management anticipates that the 12 greenhouses will be capable of producing upwards of 24,000 pounds of cannabis per year with some of the lowest power costs in the nation.
In early-June, the company also announced a membership purchase agreement with Wheeler Park Properties LLC to advance up to $2.5 million for the purchase of upgrades to a licensed cannabis greenhouse complex in exchange for a 30 percent equity interest. The highly automated 35,000 sq. ft. facility sits on about nine acres of land and has the potential to produce over 10,000 pounds of high-quality cannabis on an annual basis.
Apart from Washington, the company has made progress in advancing its California-based projects. In early-May, the company agreed to advance up to $2 million to Humboldt Holdings LLC for land and equipment purchased and the development of a 30,000 sq. ft. greenhouse project in California intended for lease and brand licensing by Humboldt to licensed cannabis tenant growers in exchange for a 30 percent interest in the company.
On top of that CROP also agreed to pay $1.3M USD for a 49% interest in a 310 acre agricultural property in Nye County, Nevada. The property has 300 acres of private water rights, with 240 acres under automatic irrigation pivots capable of yielding 120,000 pounds each. Currently 120 acres is being cleared for the first pivot to begin seeding the plot with a high-cannabidiol strain of hemp. The Nevada tenant, The Hempire LLC, has now received it’s full Hemp license and expects cultivation in Q3 and Q4 of this year.
Finally CROP has managed to sign a joint venture in northeastern Italy with the intent to develop 522,000 square feet of CBD dominant cannabis light and the retrofit and development of a GMP processing facility. The JV between it’s partner Xhemplar and CROP will allow this operation to produce mass amounts of high CBD flower and process it at its fully owned extraction facility, one of few in the entire country. Combine that with the 55 wellness and therapeutic products CROP has exclusive Italian distribution rights to and the picture starts to become clearer.
Providing Growers with Branding
CROP Infrastructure aims to do much more than provide greenhouses and extraction facilities - it wants to provide growers with access to leading national brands. By doing so, the company has the potential to generate incremental revenue with a low capital expenditure - e.g. high margins - while providing compelling value to its tenant growers. These efforts could in turn generate significant long-term shareholder value.
To this end, the company recently announced a licensing agreement for four established cannabis brands in Washington. Under the terms of the agreement, the company will sub-license the brands to its tenant growers in California and Washington. The move follows the acquisition of ten additional brands that it plans on licensing to its tenant growers, creating both additional revenue streams and a compelling reason to become a tenant grower. Additionally CROP also has the exclusive distribution rights to 55 Juve Wellness wellness and therapeutics products in Italy.
“As the cannabis market grows and matures, consumers will choose brands that they trust to provide superior quality,” said CROP Infrastructure CEO Michael Yorke in the press release announcing the new product licensing agreements. “Having unique and established brands that we will be able to license in Washington, California, other states, and globally will be another benefit that CROP will be able to provide to its tenant growers.”
Please follow the link to read the full article: http://www.cannabisfn.com/?p=1091005&preview=true
For more information, visit the company’s website or download their investor presentation.
About CFN Media
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Frank Lane
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flane@cannabisfn.com