As per the agreement, Algae.Tec will grow, harvest, extract and sell these unique plants, seeds and oils to key global markets and earn a 75% share of the revenue.
Based on the current market pricing for cannabis oil, seed extracts and fibre products, the revenue from the first crop is expected to be between US$6-8 million from product sales.
The companies are developing an initial crop of active heirloom cannabis, without genetically altered structures and with naturally high levels of cannabinoids.
The open field in Uruguay is now being seeded with JDI 3.0 Sativa strain of cannabis.
The seeding will utilise, subject to density, between two and ten kilograms per acre. The current seed stockpile with the company is sufficient for more than 100 acres.
Algae.Tec has also finalised planning for the installation of supplementary process equipment including irrigation, nutrient distribution, drying and extraction facilities.
The company is now on the brink of revenue generation through the commercialisation and subsequent sale of this first cannabis crop.
If cultivation goes to plan, the company expects sales to commence sometime in the quarter beginning April 2018.
Algae.Tec is currently actively planning the scaling up of operations in Uruguay with its partner Winter Garden.