VANCOUVER, Oct. 23, 2018 /CNW/ - Crop Infrastructure
Corp. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today 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.
About CROP
Crop Infrastructure Corp. is publicly listed on the Canadian Securities Exchange and trades under the symbol "CROP" and in the
US under the symbol "CRXPF". CROP is primarily engaged in the business of investing, constructing, owning and leasing greenhouse
projects as part of the provision of turnkey real estate solutions for lease-to-licensed cannabis producers and processors
offering best-in-class operations. The Company's portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, an
1,865 acre CBD farm, extraction in Nevada with international focuses in Jamaica and Italy and a joint venture on West
Hollywood and San Bernardino dispensary applications.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage, US and Italian
distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands.
Disclaimer for Forward-Looking Information
Certain statements in this press release are forward-looking statements are not based on historical facts, but rather on
current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause
actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition,
marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited
the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this
prohibition must be renewed each year to remain in effect. These statements generally can be identified by the use of
forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements
regarding the expected yield from The Nevada Property; the technological effects of The Nevada Property on production; the
intention to expand its portfolio; and execute on its business plan. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding the regulatory and legal framework regarding the cannabis industry in general among
all levels of government and zoning; risks associated with applicable securities laws and stock exchange rules relating to the
cannabis industry; risks associated with maintaining its interests in its various assets; the ability of the Company to finance
operations and execute its business plan and other factors beyond the control of the Company. Such forward-looking statements
should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law.
The CSE has not reviewed, approved or disapproved the content of this press release.
SOURCE CROP Infrastructure Corp.
View original content: http://www.newswire.ca/en/releases/archive/October2018/23/c6764.html