Crop’s California and Washington Farms See USD $125,374 in Completed Orders for August
Momentum Public Relations
Press Release: August 8th, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its tenanted California farm received and executed its first order from its 2018 harvest totaling $41,625 in whole flower. CROP’s tenanted Washington facility sold $83,749 in newly harvested flower, both in the first week of August.
The revenue from the Washington sales was used to pay the ongoing operating expenses at the Washington farm with the $41,625 in California being realized by CROP’s 49% owned Humboldt Holdings.
CROP CEO, Michael Yorke, stated: “Our Washington and California farms are continuing 2019 harvests, continuing towards covering ongoing expenses and finally, we are seeing cash flow from our California farm’s 2018 harvests.”
About CROP
CROP is a publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
CROP Announces Signing of Commercial Real Estate Purchase Agreement by Elite Ventures for Tonopah, Nevada Property for Gross USD $24.0 Million
Momentum Public Relations
Press Release: August 1st, 2019
CROP Infrastructure Corp. (CSE: CROP)(OTC: CRXPF) (Frankfurt: 2FR) (“CROP” or the “Company”), announces that Elite Ventures Group LLC (“Elite”), a limited liability company organized and existing under the laws of the State of Nevada in which the Company holds a 49% membership interest, has entered into two commercial real estate purchase agreements (the “PropertyPurchase Agreement”) with Trinity Global Investments LLC (“Trinity Global”) dated July 15, 2019, pursuant to which Trinity Global has agreed to purchase certain real property located in Tonopah, Nevada (together, the “Nevada Property”) owned by Elite.
The Nevada Property will be sold together with all buildings, improvements, and fixtures constructed or located on the property, in addition to 50 acre-feet of ground water rights, the assignment of a certain Nevada energy agreement along with any costs associated therewith, and the right to use the Licenses (as defined below) on the Nevada Property (together with the Nevada Property, the “EliteAssets”) for a gross aggregate purchase price of USD$6,200,000 (the “Property Purchase Price”).
In connection with the sale of the Nevada Assets, The Hempire Company L.L.C. (“Hempire”), a limited liability company organized and existing under the laws of the State of Nevada, has agreed to sell four active, authenticated, usable, uninhibited and transferable Nevada Marijuana Certificates (the “Licenses” and, together with the Elite Assets, the “Nevada Assets”) owned by Hempire to Trinity Global pursuant to the terms of an asset purchase agreement (the “Asset Purchase Agreement”) dated July 15, 2019 in consideration for USD$17,800,000 (the “License Purchase Price”). Pursuant to the terms of a Nevada cannabis license option agreement dated April 17, 2019 between Hempire and Elite, Hempire granted Elite with an option to acquire 100% of the Licenses, at any time prior to April 17, 2050, for USD$10,000.
In consideration for the purchase of the Nevada Assets, Trinity Global has agreed to pay an aggregate cash sum of USD$24,000,000 (which amount represents the aggregated sum of the Property Purchase Price and the License Purchase Price) as follows:
- an aggregate of USD$50,000 payable on or before July 26, 2019 (the “PropertyDeposit”), which Property Deposit shall entitle Trinity Global to a due diligence period ending August 6th (the “Due Diligence Period”);
- USD$950,000 payable on or before July 26, 2019 (the “LicenseDeposit”), which License Deposit shall become non-refundable and applied to the License Purchase Price at the expiration of the Due Diligence Period; and
- USD$23,000,000 payable upon the closing of the Property Purchase Agreement and the Asset Purchase Agreement (the “Closing”), which Closing is expected to occur on or before August 9th, 2019, provided there are no unforeseen delays.
In connection with the sale of the Nevada Assets, Elite and Hempire have entered into a separate disbursement agreement dated July 15, 2019, pursuant to which CROP will benefit from a combined USD$16,163,464.60 (CAD$21,251,723) directly from the sale of the Nevada Assets and indirectly through the repayment of certain debts accrued in connection therewith. Accordingly, USD$8,301,352.27 (CAD10,914,617) will be sent directly to CROP’s account as reimbursement for certain upgrades to the Nevada Property paid for by CROP, for interest payments made to date by CROP to service the initial loan used to purchase the Nevada Property and for its 49% share of the net profits. Furthermore, USD$7,862,112.34 (CAD$10,337,105) will be directly paid to certain creditors to the Nevada Property including an aggregate of CAD$5,250,000 to the certain holders of convertible debentures of the Company as well as USD$3,399,344.49 to the holder of a 20 year note issued in connection with the Nevada Property and with. The balance of the proceeds from the sale of the Nevada Assets will be paid to remaining members of Elite in amounts proportional to each member’s equity stake. All exchange rates based on the Bank of Canada exchange rate dated July 31, 2019.
Closing is subject to a number of conditions, including but not limited to, completion of satisfactory due diligence by Trinity Global, receipt of the requisite state and local governing authority approvals, and other customary closing conditions normal for a transaction of this nature.
Michael Yorke, CEO stated “The sale of the Esmerelda THC property will be bittersweet for the Company. We used a combination of long-term mortgages and convertible debt to finance the project making this an attractive return on investment for CROP and its stakeholders. The sale of the Nevada project will clean up our balance sheet as well as provide capital to vertically integrate, hire additional personnel, and focus on the four states the Company remains present.”
About CROP
CROP is a publicly listed company trading on the CSE under the symbol CROP. The Company is focused on owning a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of share equity in various companies within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 cannabis brands.
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
Crop’s First California Extracts Pass Pesticide and Heavy Metal Testing
Momentum Public Relations
Press Release: July 24, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its first batch of THC distillate cartridges derived from the 2018 harvest have passed heavy metal and pesticide testing consistent with the excellent initial test results after the 2018 harvest.
The packaging team has now resumed filling cartridges in preparation of the launch of Evolution Cannabis and Hempire brands in California.
Furthermore, the first two greenhouses at the Humboldt organic farm have been harvested and are awaiting trimming, testing and packaging.
This will allow the company to launch its premium distillate line and organic fresh flower SKUs into the California market through internal sales and the partially owned Flip Distro, giving sales teams a full suite of products to offer retailers.
CROP CEO, Michael Yorke, stated: “This is a solid step forward rolling out our cartridge, flower and pre-rolled lines into the California market, further benefiting from the recent, partial acquisition of Flip Distro with its experienced sales staff.”
About CROP
CROP is publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
Crop’s Hempire Increasing Distribution Ownership in California
Momentum Public Relations
Press Release: July 10, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that Hempire has increased its ownership of Flip Distro to 51% for $100,000 in capital expenditures and product marketing at the distribution company.
Increasing the ownership in Flip Distro, in concert with the recently announced acquisition of the Cathedral City dispensary, lounge and California-wide delivery provisional licences, will empower the company to use Flip for a secondary fulfillment centre for delivery logistics.
CROP’s Humboldt Holdings has an option to acquire 100% of Hempire’s interest in Flip at any time it becomes legal and compliant to do so.
Furthermore, the company is currently reviewing multiple locations in Cathedral City for the Emerald Heights flagship store, necessary to perfect and transfer the provisional licences. The company also announces that it has applied for a retail licence in Contra Costa.
CROP CEO, Michael Yorke, stated: “CROP will be able to connect the Emerald Heights Southern California retail provisional licence with Flip Distro’s Northern California distribution license to create a secondary drop point for delivery drivers. CROP and its partners are working hard to create as much value through the supply chain as possible for shareholders.”
About CROP
CROP is publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
CROP Investment Holding World Farms Corp. Announces Definitive Agreement to go Public on the CSE
Momentum Public Relations
Press Release: June 27, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its investment holding, World Farms Corp., has signed a definitive agreement with Graphite Energy Corp to go public via a reverse takeover (‘RTO’) on the Canadian Securities Exchange.
CROP currently owns 10,000,000 shares in World Farms Corp. which also announced a $0.30 private placement in connection with the RTO.
On February 27th CROP divested its interest in Italian and Jamaican joint ventures in return for $2.0 Million in common shares of World Farms Corp. at a deemed price of $0.20 per share for a total of 10,000,000 shares.
CROP CEO, Michael Yorke, stated: “The RTO is proceeding as planned and is now subject to final approval by the CSE. By divesting our Italian and Jamaican assets to World Farms, it has allowed CROP to focus and expand its operations in the USA, as well as gain a major investment.”
“It is significant for World Farms that it is already cultivating 100,000 cannabis plants with another 500,000 planned to be growing in Croatia over the coming weeks.”
World Farms Corp. can be followed on Instagram at www.instagram.com/world_farms, on Facebook at www.Facebook.com/worldfarms, and also on Twitter at www.twitter.com/world_farms.
About CROP
CROP is publicly listed on the CSE and trades under the symbol “CROP”, in the US on the OTC under the symbol “CRXPF”, and on the Frankfurt exchange under the symbol “2FR”. CROP has developed a portfolio of asset investments including: two in Washington State, medical and recreational in California, a 1,012-acre Nevada cannabis farm, 2,115 acre hemp CBD farm and a growing portfolio of common share equity in upcoming listings within the cannabis space, as well as Canna Drink, a cannabis infused functional beverage line. Crop has US distribution rights to over 55 cannabis topical products and a portfolio of 16 cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CROP Infrastructure, Life Sciences, Marijuana, News Home
CROP’s DVG Subsidiary Acquires Adjacent Tenanted Outdoor Farm in Washington
Momentum Public Relations
Press Release: June 25, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its 30% owned DVG, LLC partner has acquired additional facilities for a tenanted outdoor cannabis farm in Grant County, Washington.
In return for acquiring the turnkey infrastructure and branding assets for DVG company, CROP infrastructure is issuing 2,000,000 shares at a deemed price of $0.30 per share and has paid $46,000 USD cash.
The farm is operated by a Tier 3 licensed Tenant and is fully planted for the 2019 season.
The strains being planted for the 2019 outdoor season are Bubba Kush, Dutch Hawaiian, Ghost Train, Green Crack, Star Killer and WA Cookies, predominantly for extraction at the adjacent processing facility.
CROP CEO, Michael Yorke, stated: “In the roll out of the Hempire and Evolution brands we have continually worked with the team tenanted at these locations. It seemed only natural to align all parties’ interests as we continue to execute on our America-wide focus with this team.”
About CROP
Crop is publicly listed on the CSE and trades under the symbol “CROP”. CROP is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, 1,865 acres of CBD farms, extraction in Nevada and joint ventures on West Hollywood and San Bernardino dispensary apps with a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line, US and Italian distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands. CROP’s infrastructure has over 150,000 sq ft of built canopy and over 2,900 acres of real estate.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
CROP Secures Provisional Licence for a California Retail, Smoking Lounge, and State-Wide Delivery Service in Cathedral City.
Momentum Public Relations
Press Release: June 21, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its Emerald Heights retail brand has secured a provisional licence for a retail, delivery, and smoking lounge in Cathedral City, California, to vertically integrate its California brands.
CROP has also retained a local real estate broker to find suitable locations to set up its Emerald Heights flagship location. A $30,000 USD deposit has been placed and the balance of $220,000 USD will be paid on final transfer of ownership of the license. CROP’s subsidiary will be able to run delivery routes in the Bay Area, Coachella Valley, and is currently seeking a Southern California distribution partner.
CROP’s California extraction partner has run the first batch of material for extraction from the 2018 harvest into THC distillate oil, this first run will be used to fill 30,000 vape cartridges and combined with inventoried flower prepare 200,000 Moonrock Cones. Additional inventoried organic flower will produce ~100,000 pre rolled joints. These products are intended to be sold in the first Emerald Heights store and have a total wholesale value of $2,860,000 USD if sold through the company’s distribution company and partners and if sold at the Emerald Heights location a total retail value of over $6,000,000 USD.
CROP CEO, Michael Yorke, stated: “Emerald Heights’ entry into retail markets in California will be highly beneficial for CROP. We and our partners are working diligently to achieve as much value through the supply chain as possible for stakeholders.”
About Emerald Heights
Emerald Heights brand is focused on the so-called Emerald Triangle cannabis growing area and is a true California brand offering a heightened retail experience for adult customers of all ages. Emerald Heights aims to provide only the highest quality, state-compliant, organically sourced products in a safe and professional environment. Emerald Heights pays particular care to customer relations with its knowledgeable staff.
About CROP
CROP is publicly listed company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 Cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
CROP Announces Second Senior Secured Convertible Debenture Offering
Momentum Public Relations
Press Release: June 11, 2019
CROP Infrastructure Corp. (CSE: CROP) (“CROP” or the “Company”), announces that it intends to conduct a non-brokered private placement offering (the “Offering”) of senior secured convertible debentures (the “Debentures”) at an original issue discount of 20% with aggregate face value of up to $1,250,000 (the “Principal Amount”), for gross aggregate proceeds of up to $1,000,000.
The terms of the Debentures include:
- a maturity date of one year from the date of closing of the Offering (the “Closing”) and will bear interest at a rate of 10% per annum, payable quarterly in cash (the “Interest”);
- subject to adjustment, the holders of the Debentures, at any time, may convert all or any part of the Principal Amount outstanding under the Debentures into common shares of the Company (each, a “Conversion Share”) at a conversion price of $0.30 per Conversion Share (the “Conversion Price”) and with which any accrued and unpaid Interest may be converted into Conversion Shares at a conversion price of $0.30 per Conversion Share; and
- the Company may elect to repay, in cash, the outstanding Principal Amount of the Debentures, including any accrued and unpaid Interest, upon 30 days written notice any time following the initial 4 months from the date of Closing.
Each subscriber to the Offering shall receive one share purchase warrant (each, a “Warrant”) for each $0.30 of Principal Amount with each Warrant entitling the holder thereof to acquire one common share of the Company (each, a “Warrant Share”) at an exercise price of $0.50 per Warrant Share (the “Exercise Price”) for a period of 3 years from Closing.
If the Company undertakes an equity financing at a price per common share (each, a “Share”) (or having a conversion or exchange price) less than 95% of the closing market price per Share while the Debentures are outstanding, the Conversion Price, subject to Canadian Securities Exchange (“CSE”) approval, will be adjusted so that it will equal the price determined by multiplying the Conversion Price by a fraction, of which the numerator will be the total number of Shares outstanding on such date plus a number equal to the number determined by dividing the aggregate purchase price of the additional Shares offered for subscription or purchase by the closing market price per Share on the day immediately preceding such date, and of which the denominator will be the total number of Shares outstanding on such record date plus the number of the additional Shares.
If during the term of the Warrants, the Company issues warrants with an exercise price below the Exercise Price, the Company will, subject to CSE approval, adjust the Exercise Price downward to the to the greater of (a) the price of such issuance, and (b) the closing market price of the Shares on the CSE on the trading day prior to public dissemination of the news release disclosing the issuance of the Debentures, less the maximum discount permitted by CSE policies. Further, if during the term of the Warrants, the Company issues warrants with an exercise price below the Exercise Price, the Company will, subject to prior approval from the CSE, issue to the Warrant holder special warrants at the reduced exercise price equal to the number of Warrants that would have been issued if the reduced exercise price was used to calculate the number of Warrants issued.
The Debentures will be collaterally secured by: (a) an amended general security agreement constituting a charge and security interest in all of the personal property of the Company; and (b) an unlimited guarantee of certain U.S. based entities of which the Company holds an equity interest consisting of DVG LLC, Elite Ventures Group LLC, Humboldt Holdings, LLC, Ocean Green Management LLC, Wheeler Corridor Business Park LLC, and Wheeler Park Properties, LLC (each, a “Guarantor”) and collaterally secured by security agreements issued by each Guarantor; (c) a pledge of equity interest from the Company relating to the equity interests of each of the Guarantors; and (d) a first priority deed of trust lien on the real property of the Guarantors located in California, Washington and Nevada (collectively, the “Security”). The enforcement of the Security is subject to the terms and conditions of the certificates representing the Debentures (the “Debenture Certificates”) and to an Amended Agency and Interlender Agreement to be entered into among the holders of the Debenture Certificates, the Company, each of the Guarantors, and an agent.
The proceeds of the Offering are expected to be used to continue to grow the Company’s United States operations and for general working capital purposes.
None of the securities issued in connection with the Offering will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About CROP
Crop is publicly listed on the CSE and trades under the symbol “CROP”, in the US on the OTC under the symbol “CRXPF”, and on the Börse Frankfurt (Frankfurt Stock Exchange) under the symbol “2FR”. The Company is focused on owning a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of share equity in various companies within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 cannabis brands.
Company Contact
Michael Yorke – CEO & Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in CROP Infrastructure, News Home
Tiff CBD Brand Product Launched in Washington as Tenant Achieves ‘Self-Sustaining’ Status
Momentum Public Relations
Press Release: June 5th, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its Park Project tenant is now at the ‘self-sustaining’ point as it launches its Tiff CBD cartridge line.
This is the first of CROP’s tenanted assets to become self-sustainable just 12 months since it’s acquisition. Since January 1, 2019 receivables of $642,000 USD in lease, rental and brand fees have been accrued and are owing by the tenant.
The first batch of Tiff CBD has been produced and the tenant has received both cartridges and boxes for its Tiff CBD line, initially to be sold as a full spectrum product in Washington, with a no THC product to be introduced in all States where the company is present.
CROP CEO, Michael Yorke, said, “We are excited by the launch of the full spectrum Tiff CBD line in Washington as well as a multi-state no THC Tiff CBD product. With the Park facility now self-sustainable and on the right trajectory, our bandwidth and capital can be focused on opportunities both where the company is present and as new States come online.”
Facility update
The Washington Park facility underwent a full retrofit late last year and brought on a new head grower to guide the team to enter the premium product categories. The yield is growing from the flower being harvested every day with a visible improvement in yield and quality with each cycle.
The project has also entered numerous additional extract categories led by the project’s on-site Ph.D. He can be followed at Instagram.com/doc_t3. Additionally, the sales and marketing team has designed and are ordering new glass jars and premium packaging in preparation for the newly produced products with the project’s entry into the premium product category versus bulk sales and economic brand categories.
About CROP
Crop is publicly listed on the CSE and trades under the symbol “CROP”, in the US on the OTC under the symbol “CRXPF”, and on the Frankfurt exchange under the symbol “2FR”. CROP has developed a portfolio of asset investments including; two in Washington State, medical and recreational in California, a 1,012-acre Nevada Cannabis farm, 2,115 acre Hemp CBD farm and a growing portfolio of common share equity in upcoming listings within the cannabis space. Further as well as Canna Drink, a cannabis infused functional beverage line. Crop has a 16 Cannabis brands as well as US distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands.
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home
CROP Subsidiary Enters 5 Month CBD Isolate Supply Agreement With BIOSCIENCE ENTERPRISES, INC.
Momentum Public Relations
Press Releases: May 30th, 2019
CROP INFRASTRUCTURE CORP. (“CROP” or the “Company”) (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announces today that ELITE VENTURES GROUP, LLC (“Elite”), a Nevada limited liability company in which CROP holds a 49% membership interest, in partnership with its licensee THE HEMPIRE COMPANY, LLC (“Hempire” and, together with Elite, “Elite & Hempire”), has entered into a supply agreement (the “Supply Agreement”) with BIOSCIENCE ENTERPRISES, INC. (“Bioscience”), a California based cannabidiol (“CBD”) isolate distribution company, to supply Bioscience with an aggregate of USD$89,500,000 in CBD isolate, with deliveries required to commence in November, 2019 and ending in March 2020, upon completion of the Supply Agreement’s initial five-month term (the “Initial Term”).
Pursuant to the terms of the Supply Agreement, Elite & Hempire have agreed to provide certain amounts of CBD isolate, on a monthly basis, to Bioscience on an agreed upon per kilogram price in consideration for:
- a USD$525,000 deposit payable upon entry of the Supply Agreement (paid);
- a second deposit of USD$350,000 due within thirty (30) days of entry of the Supply Agreement; and
- USD$875,000 due upon confirmation of the first Shipment (the “Third Deposit” and, collectively, the “Deposits”).
The Deposits are to be applied against the balance of first Shipment. In the event Elite & Hempire fail to deliver the first Shipment, Bioscience is entitled, at its sole discretion, to either the full repayment of the Third Deposit or have the proceeds of Third Deposit converted into common shares in the capital of CROP (each, a “Share”) at a price discounted 20% to the closing market price of the Shares on November 15, 2019, subject to a floor of $0.30 per Share.
Prior to each Shipment, Bioscience shall deposit 10% of the value of the CBD isolate of the subject Shipment (USD$1,900,000) into an escrow account held by Bioscience. The balance of each Shipment (USD$17,100,000) is due and payable within thirty (30) days of the receipt (“NET 30”), by the parties, of testing results for heavy metals, residuals, pesticides and microbial content in addition to a minimum 99.5% purity rating. The CBD isolate is to be sent for testing within three (3) business days of its delivery to Bioscience’s distribution center. During the NET 30 period, Elite & Hempire shall maintain title of the CBD isolate.
All proceeds generated from the sale of the CBD isolate to Bioscience under the Supply Agreement are to be distributed among the members of Elite pro rata to each members’ respective membership interest (approximately USD$43,855,000 for CROP’s 49% membership interest in Elite).
Bioscience has the sole right to extend the Initial Term for an additional two months (until May, 2020) on the same terms disclosed above (an additional USD$38,000,000 in value). The total anticipated value of the Supply Agreement, if the Initial Term is extended, is expected to be approximately USD$131,500,000.
Elite’s Nye County, Nevada CBD farm spans approximately 2,200 acres with 1,350 acres under pivot irrigation using organic growing methodologies. The 2019 cultivation is expected to produce 10-20% CBD genetic hemp-CBD which is expected to be extracted and isolated to produce a minimum 99.5% pure CBD isolate. Based on calculations of the Company’s grow consultant and assuming a minimum average of 10% CBD content, the Supply Agreement will represent ~35% of the farm’s potential CBD isolate yield from its 2019 cultivation. The parties plan to work together not just within the parameters of the Supply Agreement, but also to expand the Supply Agreement to include new high-yield cannabinol (“CBN”) and cannabigerol (“CBG”) isolates in order to provide new SKUs for Bioscience and to help foster a long-term partnership for the Company, its subsidiaries and stakeholders.
In connection with the Supply Agreement, CROP has agreed to pay an introduction fee of 1,333,333 Shares at a deemed price of CAD$0.30 per Share to a third party finder who introduced Elite & Hempire to Bioscience. All securities issued in connection with the Supply Agreement are conditional upon the approval of the Canadian Securities Exchange (“CSE”) and will be subject to a statutory hold period of four months and a day.
Richard Parker, President of Bioscience stated: “We are thrilled to be working with such an innovative group as CROP on a partnership that we hope will flourish within the progressing CBD industry. Having the best products on the market is what we believe makes Bioscience stand out as a reputable supplier, and without producers like CROP that would not be possible.”
Michael Yorke, CEO of CROP stated: “While the monetary value of the Supply Agreement is significant for CROP and its stakeholders, the relationship we are building with the team at Bioscience is key to our continual efforts to become a key player in the CBD production space and the development of new strains of product for isolation which will complement Bioscience’s industry-leading clientele and what both Bioscience and CROP believe will be in demand in 2020, 2021 and far beyond.”
About Bioscience
Since its inception in 2018, Bioscience has emerged as a major contender in the CBD supply business. Native to California, Bioscience has contracts across the continental USA and Canada for the supply of European Union and domestic grade isolate, oil and aerosol CDB in white label or specialized labeled products. Bioscience prides itself on having the purest CBD supply on the market today brought through a world class quality assessment and quarantine process.
About CROP
CROP is a publicly listed company trading on the CSE under the symbol CROP. The Company is focused on owning a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of share equity in various companies within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line and 16 cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CBD, CROP Infrastructure, Marijuana, News Home