CROP Infrastructure Corp (OTCMKTS:CRXPF) (CNSX:CROP) said Wednesday it is selling its Italian and Jamaican assets for C$2 million.
Under the terms of the deal, the Vancouver cannabis company has entered into a purchase and sales agreement with World Farms Corp to divest its interests in CROP Jamaica and XHemplar S.R.L. in Italy for C$2 million worth of equity in World Farms Corp (WFC).
The investment equates to 10 million shares in World Farms and represents a 19% stake in the company for CROP.
In a statement, CROP CEO Michael Yorke said the company will now focus on its US operations.
“CROP has divested itself of these two international operations so that management can remain entirely focused on the expanding US operations while retaining a passive but strategic investment in an internationally focused player offering CROP shareholders additional exposure to WFC’s global growth,” Yorke said.
“The passing of the US Farm bill in December 2018 has been a total game changer in terms of the vast opportunities opening up right now in the US. We firmly believe in striking while the iron’s hot right now on our US doorstep while maintaining exposure to infantile global opportunities,” Yorke added.
CROP will stay on as an advisor with World Farms to offer advice on research and development in plant science.
The XHemplar S.R.L joint venture covers 87,210 square feet. CROP and XHemplar have been working with Italian agencies to import new CBD (cannabidiol) genetics for the operation.
CROP Jamaica, meanwhile, has a five-acre property for the cultivation and extraction of cannabis.
In a statement, Arthur Griffiths, World Farms CEO, said he was bullish on the acquisition.
“World will bring additional value by leveraging our 1 million square feet of greenhouse canopy in South Africa for the eventual importation of cannabis & hemp products into Italy and Jamaica,” he said.
In other news, CROP has retained Mackie Research Capital Corporation as a capital markets advisor to help meet its financial demands. An advisory fee of C$60,000 and 1 million warrants at C$0.50 for a period of 24 months has been agreed upon.
Based in Vancouver, CROP’s portfolio of projects includes cultivation properties in California as well as Washington state, a 1,000 acre Nevada cannabis farm and extraction work in Nevada.
Contact Ellen Kelleher at [email protected]