CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) has completed the largest transaction in the company’s history with the purchase of a suite of recreational cannabis licenses and a 1,012-acre property in Nevada.
The company’s subsidiary Elite Ventures Group, purchased the package for more than US$8 million, consisting of US$4 million amortized over 20 years for 843 acres of real estate. CROP paid a further US$4 million for 169 acres, including a down payment for a 20-year vendor financing for the remaining 843 acres.
CROP retains an option on all licenses once federally legal, enabling the company to recoup 100% of its investment.
READ: CROP Infrastructure's Oklahoma tenant gains medical and cannabis cultivation, processing licenses
At the company’s Esmerelda cannabis project in Nevada, CROP is currently constructing a wall around the 1,012-acre property that requires an additional US$250,000 in funding. Once complete, the outdoor cannabis cultivation area is expected to yield 80,000 pounds of around 20% per year of THC or 15,000 kilograms of distillate.
CBD/THC extraction facilities will be constructed on the property in preparation for crop processing this year.
“Closing this acquisition is the largest transaction CROP has ever completed to date,” said CROP CEO Michael Yorke. “CROP now has the largest licensed recreational cannabis farm in the United States and perhaps the world with over 1,000 acres of which 40 acres will be planted this year.”
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.
Shares of Vancouver-based CROP eased 1.5% at C$0.29 in Canada and were trading at US$0.21 on OTC markets.
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