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OptimumSpectrumon Nov 02, 2018 11:03pm
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Breakdown Of Extraction Facility Developement News Release
Breakdown Of Extraction Facility Developement News ReleaseCROP DEVELOPING ONE TON NEVADA EXTRACTION FACILITY WITH 60% PAYMENT COMING FROM 1,500,000 POUND SUPPLY AGREEMENT
For those who dont know much about CBD Isolate, here is a short breakdown. CBD Isolate is Perfect for Medical Patients
Because it’s already been decarboxylated, there is no need to vape CBD isolate to recieve its benefits. You can simply ingest the isolate and let it go to work. Also keep in mind that consuming isolate (as opposed to smoking a high CBD strain of cannabis) yields you higher concentrations of CBD in smaller amounts, making it a great medicine for those who need it.
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that the company has now engaged an ISO/GMP rated extraction facility developer to build a one ton per day extraction facility at its Nevada farm.
On October 23rd CROP announced a 500,000 pound annual (1,500,000 over 3 years) supply agreement with a commercial extraction technology company. The same company will be developing, and providing, extraction equipment for the CROP Nevada extraction facility.
One ton/ day = 2,000 Lb./ day
500,000 Lb./ yr. / 2,000 Lb./ day (over 3 years) = 250 days required out of the year to process the offtaking, and extract the CBD content from each annual 500,000 Lb., while at maximum capacity of intake using their hemp in the facility. This leaves an extra 115 days out of the year for other extracts to take place, depending on maintenance routines in the facility. Perhaps it will only operate Monday through Friday.
The initial $3.2 Million, equivalent to ~89,000 pounds of product, will be allocated towards paying for 60% of the extraction facility. The balance of ~$2.0 Million, due in cash over the next eight months will be financed by revenue from the company’s operations.
Making a point to conserve funds and pay for financing for themselves through the revenue of their existing operations. Therefore, removing any further dilution threats many investors fear. Simple structure with great results.
As previously announced, 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 Certificate of Analysis of the CBD content with deliveries starting August 2019.
They could be getting anywhere from $1.8 Million- $2.85 Million, every other month for their 50 Lb. shipments, depending on the consistancy and grade of CBD content, before delivery costs. Only 9 months until this baby starts delivery.
CROP CEO, Michael Yorke, stated: “The synergies and relationship between CROP and our off-take partner continue to evolve. We look forward to continuing to develop this new partnership into new opportunities and other territories. We believe this is an effective and creative way of financing and developing our growth in a non-dilutive arrangement.”
This is easily my favorite part of the news release.