On July 31, 2018, Crop Infrastructure (CROP.C) announced it has signed a joint venture (JV) agreement whereby the company has a 49% interest in a zero-cost lease of a 217,000 sq. foot Jamaican property “ideally situated for future Cannabis production and extraction”.
The 5-acres of prime agricultural land has been secured in the Westmoreland Parish, some of the most fertile land in Jamaica. The company is in the process of identifying a suitable tenant licensee for the project.
Westmoreland is the western-most parish in Jamaica, located on the south side of the island. Tourists know it largely for the 7-Mile-Beach at Negril.
But the area is also blessed with incredibly fecund soil, that grows sugarcane, bananas, coffee, ginger, cocoa…and marijuana.
The Jamaican JV plans to license the brand, ‘Hempire Jamaica’ to the tenant and has acquired the domain www.HempireJamaica.com.
At a macro-level, the CROP business model is to invest capital in land and equipment to increase weed operators’ growth. It’s basically a cannabis-specific Real Estate Investment Trust (REIT).
CROP’s opportunity arises from the fact that federal regulations prevent mainstream lending institutions from investing in weed companies. CROP invests in producers and processors through lease programs and fee-based management options.
A month ago, CROP signed a J.V. agreement whereby CROP will own 30% of a 522,000 square foot project in the North-Eastern region of Italy.
The Italian JV has been permitted to develop an extraction and processing facility.
CROP is providing an initial investment of €500,000 in the Italy project to enable the planting of 435,000 square feet, the retrofit of the extraction facility and the construction of an 87,000 square foot greenhouse facility.
Initial yield is expected to be a combined 44,000 pounds of low THC, high CBD cannabis light per year.
“Crop has identified that many countries throughout Europe specifically focusing on the CBD markets are prime new entry points for our growing organization,” stated CROP Infrastructure Director & CEO Michael Yorke.
Crop’s portfolio of projects now spans the globe, with cultivation properties in California, Washington State, Nevada, Italy and Jamaica.
CROP also has a JV on West Hollywood and San Bernardino dispensary applications.
In addition, CROP has developed a portfolio of 15 Cannabis brands and has US and Italian distribution rights to a line of over 55 cannabis topical products from The Yield Growth Corp.
On July 24, 2018 CROP announced that its U.S. tenant grower has completed planting of the additional 120 acres at its agricultural hemp farm in central Nevada. The location is considered ideal for greenhouse and outdoor growing.
Site preparation and planning are beginning for the development of a CBD Isolate extraction facility.
The Company is currently reviewing several quotes for industrial drying solutions and extraction equipment and will release further details once plans have been finalized.
The property totals over 315 acres and includes 300 acres of private water rights, with 240 acres under automatic irrigation pivots that also have automatic fertilizer injection systems installed.
According to The Marijuana Business Daily the Nevada market is fetching:
- $200 or more per pound for flower, depending on CBD content and quality
- Approximately $10 per pound of food-grade seed, or $45 per gallon for seed oil
- Approximately $200 per ton of baled fiber
- Approximately $10,000 per Kg of CBD isolate
There are beautiful ancient ruins in Thailand, Vietnam and Peru – but when you think “ancient ruins” – you think “Greece”.
So it is with “ganja” and Jamaica.
Celebrity Rastafarians – like reggae musician Bob Marley – have helped to brand Jamaica as the world mecca for weed.
Under the current law, possession of up to 2 ounces (or 56 grams) of marijuana is a petty offence punishable by a maximum fine of about USD $5.
Jamaican law does permit the cultivation of up to 5 marijuana plants per household. Rastafari adults can legally use marijuana for sacramental purposes.
We believe CROPs presence in Jamaica could have significant branding value if and when Jamaica begins exporting leaf.
“CROP continues to build its global footprint by securing this strategic joint venture in Jamaica,” stated CROP Director & CEO Michael Yorke, “Jamaica is of particular interest as its licensing regime allows for a full suite of genetics which will give our tenant growers the advantage of being able to provide buyers with a broad variety of CBD and THC end products.”
Yorke points out that many countries are now introducing new licensing and legislative regimes for CBD and cannabis, creating opportunities for CROP.
Jamaica has 2.8 million residents and about three million visitors each year. The estimated the global marijuana tourism market is about half a trillion dollars.
Full Disclosure: CROP is an Equity Guru marketing client and we own stock.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.