Proactive Investors - Run By Investors For Investors

CROP Infrastructure subsidiary enters $89.5M CBD supply agreement with Bioscience Enterprises

The sale will generate about $43 million for CROP in proportion with its 49% stake
Cannabis next to half-full jar
Vancouver-based CROP is focused on building a portfolio of cannabis and real estate assets

CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) announced Thursday that Elite Ventures Group, in which it owns a 49% stake, has struck a deal to provide $89.5 million worth of cannabidiol isolate to Bioscience Enterprises Inc.

The sale will generate about $43 million for CROP in proportion with its stake in the company. Delivery is scheduled to begin in November and last through March 2020. Biosciences can elect to extend the deal an additional two months for an extra $38 million.

Shares of CROP grew nearly 4% to C$0.27 in Toronto and 2% to US$0.20 on OTC markets.

Elite operates a 2,200-acre CBD farm in Nye County, Nevada. Its 2019 crop is expected to produce hemp with CBD between 10% and 20%. The CBD will be sold in conjunction with Elite Ventures’ licensee The Hempire Company LLC.

READ: CROP Infrastructure's investment holding World Farms plans to go public on CSE

CBD isolate is extracted from cannabis to achieve pure cannabidiol. It lacks tetrahydrocannabinol, THC, the psychoactive cannabinoid that produces a high. 

In addition to $17.1 million per shipment, California-based Biosciences will pay a series of three deposits at the outset of the agreement, after 30 days, and upon completion. If, for whatever reason, Elite and Hempire do not deliver their first shipment, Biosciences can have the proceeds of their third deposit converted into CROP stock.

CROP paid an introduction feel of 1.3 million shares at a price of C$0.30 per share to a finder that brought the companies together. The company, based in Vancouver, is focused on building a portfolio of cannabis and real estate assets.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full CROP profile View Profile

Crop Infrastructure Corp. Timeline

Related Articles

cannabis plant
June 17 2019
The company recently underwent a brand identity redesign and unveiled a new wknd! product line consisting of pre-rolls, vape pens and cannagars which it will launch in July in Washington State
cannabis
August 28 2018
Tidal Royalty provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues.
1542134062_Harvesting-hemp.jpg
November 14 2018
Ascent, viaThirty Eight Hemp Corp, will exploit the hemp market via its strategic relationship with AgTech Scientific

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use