CropLogic Ltd (ASX:CLI) is in a trading halt pending an update on the harvest at the Hemp Trial Farm in Central Oregon, USA, that is operated by CropLogic’s wholly-owned subsidiary LogicalCropping LLC.
The halt will remain in place until the start of normal ASX trading on Tuesday, November 19, 2019, or when an announcement is released to the market, whichever occurs earliest.
On Thursday the global agronomy, farm management and agtech company traded in the range of 2.9 cents to 3.4 cents, closing at 3.1 cents.
In late October the company started shipping biomass material from the harvesting of its trial farm.
This forms part of a supply agreement for LogicalCropping LLC to supply biomass in weekly shipments with payment in US dollars to follow each delivery.
Provided these deliveries are completed, the total supply agreement value is US$10.5 million (A$15.4 million).
At the time CEO James Cooper-Jones said, “The commencement of shipping of biomass is a significant milestone in the hemp trial farm.
“This milestone caps off a seed-to-sale story for the hemp trial farm and speaks volumes to CropLogic’s agronomy, farm management and agtech expertise.”
Swathing proves successful
The methodology of swathing, sometimes called windrowing in Australia and New Zealand, field drying and then combining biomass has been successful to date.
A process of brushing after combining had been considered, however, management and buyers have been pleased with the consistency of biomass material from the combine, potentially eliminating or at least reducing the need for brushing.
Not only does this reduce the cost of brushing but it also streamlines the harvesting process both this season and in any eventual expansion.
The harvest progress was such that CropLogic’s warehousing procedure was implemented.
This includes bagging the biomass into supersacks, weighing and tagging and then storing for sale.
CropLogic group is one of the first ASX-listed companies to secure a US hemp growers licence.