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CropLogic focuses on financing its 2020 development plans after weather affects 2019 crop

The company’s 2019 hemp trial farm operations have been affected by an adverse weather event.

CropLogic Ltd - CropLogic focuses on financing its 2020 development plans
The harvested biomass is thought to still be sellable according to the company

CropLogic Ltd (ASX:CLI) generated final cropping results from its hemp trial farm in Oregan of 407,296 pounds of biomass with an average CBD grade of 2.11%.

The hemp trial farm was affected late season by an adverse weather event that saw temperatures drop significantly lower overnight and result in poor crop results.

Under the supply agreement with Deschutes Labs, the minimum required CBD grade was 8%, which means the harvested product does not meet the agreed criteria.

Despite the effects of the adverse weather the biomass is thought to still be sellable and sales avenues will be investigated in 2020.

General manager appointed to drive future growth

Mike Fraley has been appointed general manager of the company’s subsidiary LogicalCropping and will be based in Oregon.

He will facilitate the implementation of the foundation methodology for growing hemp at scale and LogicalCropping’s growth plans into 2020.

CropLogic’s CEO James Cooper-Jones said: “Mike’s agronomy and product development expertise, coupled with his exposure to experimental crops including hemp and cannabis, will be of great value to LogicalCropping and its growth aspirations in the coming years.”

Financing for 2020

CropLogic has entered into an unsecured short-term loan facility for an amount of $250,000 for a one-off fee of $12,500 maturing 31 January 2020.

In additional, London-based Atlas Capital Markets has agreed to a strategic share placement facility that could provide up to A$20 million of funding in the next 12-36 months.

CropLogic’s chairman Steven Wakefield said: “The company has a significant potential commercial opportunity to provide a Corporate Farming Option to the hemp industry.

“I thank the hardworking CropLogic and LogicalCropping team for their huge efforts this season, and for our supportive shareholders and funders around the world.

“I welcome Mike Fraley to the team and thank Atlas Capital Markets as our ongoing and look optimistically to the group’s success into 2020 and beyond.”

Quick facts: CropLogic Ltd

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ASX:CLI
Market: ASX
Market Cap: $12.91 m
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