Is Crop Infrastructure (CROP.C) now a screaming buy?
On February 14, 2019 CROP announced that its 49%-owned Nevada tenant, has been issued with a 2019 hemp handler license, hemp nursery and hemp grower licenses covering 1,350 irrigated acres on its 2,115 acres of owned or leased CBD focused lands. A hemp handler is registered by the licensing department to receive industrial hemp for processing into commodities, products or agricultural hemp seed.Crop applied for its grower and hemp handler licence anticipating production and lab extraction of CBD isolate with a throughput capacity of one ton per day of raw biomass. Crop increased the acreage size covered by its hemp licences from 240 acres of cultivation in 2018 to 1,350 acres of irrigated cultivation for 2019. For the record, thats over 1,000 football fields. The CBD flower off take is to be delivered in shipments of 50,000 dry pounds on a bi-monthly basis with payment to be made plus the cost of delivery of $36.00 per pound to $57.00 per pound depending on quality. Deliveries will start August 2019. The synergies and relationship between CROP and our off-take partner continue to evolve, stated CROP CEO, Michael Yorke. We believe this is an effective and creative way of financing and developing our growth in a non-dilutive arrangement. With the increased size and operating range of our tenants licenses, CROPs Nevada CBD operations are emerging into a truly world class operation, stated Yorke. Our land holdings, micropropagation team, strategies, drying and extraction capabilities and supply agreements will enable us to operate from seeds to isolate to sales in 2019. Is CROP a screaming buy? Trading at .33 with a market cap of $44 million, the obvious answer is yes. The honest answer is, depends on market sentiment. The Brightfield Group of Chicago estimates the North American market for CBD could grow 2,000% in the next 4 years to USD $22 billion. Crop has a big foothold in this market.