CROP Infrastructure Corp (CNSX:CROP) (OTCMKTS:CRXPF) revealed that its subsidiary Elite Ventures Group LLC will partner with Vancouver-based MYM Nutraceuticals (CSE:MYM) on 120 acres of CBD-rich hemp in Nevada.
Based on Elite’s previous success in cultivating 120 acres of similarly situated land in August last year, the estimated production of hemp from the parcel is 120,000 pounds per harvest, representing potential revenue of more than $26 million, of which MYM is entitled to 50% less processing and sales fees.
"This is very significant partnership arrangement with Vancouver-based MYM Nutraceuticals which has operations in three countries and will bring additional exposure to our organic hemp products," said CROP chief executive Michael Yorke.
Under the deal, MYM will fund Elite with US$500,000 in exchange for the rights to 50% of the CBD rich hemp.
Elite will provide all the necessary capital and consumable supplies, plant, grow and harvest the hemp. If requested, it will also arrange for the processing and sale of the biomass at no less favourable terms than those found in the Elite supply agreements.
CROP’s portfolio includes cultivation properties in California, two in Washington state, a thousand-acre Nevada cannabis farm, 2,115 acres of hemp CBD farms, and a growing portfolio of stakes in upcoming listings within the cannabis space.
Its assets also include Canna Drink, a cannabis-infused functional beverage line and 16 Cannabis brands.
Last month, Crop said it was selling its Italian and Jamaican assets for C$2 million.
The Vancouver cannabis company entered into a purchase and sales agreement with World Farms Corp to divest its interests in CROP Jamaica and XHemplar SRL in Italy for C$2 million worth of equity in World Farms Corp (WFC).
The investment equates to 10 million shares in World Farms and represents a 19% stake in the company for CROP.
In the statement, CEO Yorke said the company will now focus on its US operations.
Shares on Thursday eased 2.9% to $0.33 in Toronto.
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