Crop Announces Major 1.5 Million Pound 3-Year Supply Agreement

Published: October 23, 2018

Crop Announces Major 1.5 Million Pound 3-Year Supply Agreement

Crop Infrastructure Corp. announced that Hempire, the Company’s brand and tenant at its 49% owned Nevada CBD farm, has signed a three-year, 500,000 pound per year (1,500,000 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 bi-monthly basis with payment to be made of $36.00 USD per pound to $57.00 USD per pound plus the cost of delivery depending on the CBD content indicated by the Certificate of Analysis. If market conditions change adversely in favor of, or against the company, the contract stipulates that prices will not fluctuate more than 25% over, or below, the range of $36 – $57 per pound.

Cannabis industry analysts, The Brightfield Group, estimate the hemp-CBD market alone could reach $22-billion by 2022.

CROP Infrastructure CEO, 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 September 24th, we estimated 2019 tenant production at the Nevada CBD farm will be approximately 2,680,000 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 % 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.