CROP Infrastructure (CROP.C) is expanding its hemp CBD production in Italy and attracting the attention of Italian pharmaceutical companies in time for the 2019 growing season.
The joint venture between Crop and XHemplar Italia now sports a large, newly upgraded Italian CBD greenhouse facility which covers 87,120 square feet. Security measures are currently being erected, with a perimeter security fence and a comprehensive closed-circuit television security system currently under construction.
CROP and XHemplar have decided on six potential retail locations throughout Italy, and have opened negotiations towards opening two. They also intend on building an extraction facility to process hemp biomass in-house.
Through their joint-venture facility, CROP and XHemplar are hard at work with Italian agencies on the import of new and unique high-CBD genetics to populate their upgraded facility.
Both CROP and its partner are presently in discussions with an Italy-based pharmaceutical company in search of an offtake agreement for the 2019 harvests.
“Italy is our bridgehead into Europe. Our Italian partners are making significant progress on multiple fronts to ensure that the European operations are running at full capacity to take full advantage of the rapidly growing demand there. Our unique, high-CBD strains will position Crop as a low-cost and high-quality pure CBD provider, both domestically in North America and throughout the European market. The joint venture’s CBD products will be branded under the XHemplar and Crop brands Tiffany CBD and Hempire Italia,” said Crop Infrastructure CEO, Michael Yorke.
This comes hot on the heels of the upcoming US Farm Bill, which was passed by the US House and Senate earlier this month, allows for industrial hemp production in the United States, and opens the door for Crop and other interested parties into an entirely new market.
The “Farm Bill is the first step to active” involvement in the U.S. by Canopy Growth, CEO Bruce Linton told CNBC Wednesday. “The world’s changing: This is the first step in the U.S. to manage cannabinoids.”
CBD is a non-psychoactive cannabis compound derived from both marijuana plants and hemp. It is being used to treat ailments such as inflammation, chronic pain and arthritis.
Arcview Market Research and its partner BDS Analytics, government subsidized health care spending is expected to make Europe among the fastest growing and largest medical cannabis markets in the world. Arcview also expects Italy to be the second largest cannabis market in Europe by 2027, with $1.2 billion in sales.
“The company is extremely encouraged by the fast pace of our partners at XHemplar having advanced into production in Italy. Management will continue to aggressively pursue new international opportunities and expand its portfolio of tenant growers and infrastructure assets in strategic jurisdictions,” Yorke said.
Key Company highlights include:
- A hybrid rec/med cultivation facility in California.
- Two properties in Washington State.
- Cannabis and hemp CBD interests in Nevada
- Extraction capabilities in Nevada with international expansions in Jamaica and Italy.
- A joint venture with West Hollywood and San Bernardino dispensaries.
- An overseas expansion in Italy.
Cannabis industry analysts, The Brightfield Group, estimate that the hemp CBD market could reach $22 billion by 2022.
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