CROP Farm Signs California Processing and Retail Dist CRXPF) (Frankfurt: 2FR) announced today it has signed a toll processing agreement with a manufacturing company that will produce oils, crumbles and distillates for sale in to the California market.
The raw material will be finished cannabis from CROP's Humboldt County farm where the cannabis is awaiting sale, being trimmed or drying. The farm is currently flowering 10,000 sqft of canopy for a late stage harvest and is working on the permitting for its 2019 expansion including a proposed 30,000 sq ft automated greenhouse facility.
In addition, a distribution agreement is now in place for the cannabis which will be sold under the company's Hempire brand for estimated gross revenue of approximately $1,600 per pound of flower. The farm has allocated 750lbs of inventory to be sold under the Hempire brand.
The distributor has offices in Oakland and Orange County. Their distribution network consists of approximately 350 licensed cannabis stores across California.