CROP Infrastructure (CROP.C) announced today that its 49%-owned subsidiary, Elite Ventures, has completed its genetics, tissue culturing and micropropagation lab at the company’s Nevada THC farm.
The Nevada micropropagation lab is geared to produce 10 million plant starts for CROP’s 2,115 acres of CBD farms.
Permitting and construction
Nevada’s Cannabis Licensing Board is expected to carry out the newly completed facility’s final inspection in the last week of January.
If the building passes muster, CROP will have approval for the cultivation of recreational cannabis and use of its commercial kitchen.
The company also noted that the building blocks required for the facility’s security perimeter wall have been ordered and are anticipated to arrive on-site shortly.
So what’s a micropropagation lab?
Micropropagation is the future of cannabis, allowing growers to take a small tissue sample from a mother plant and store it in a nutrient-rich petri dish.
Traditional cloning techniques require the grower to snip off a piece of the mother plant and grow the trimming in a pot.
As such, traditional cloning limits the number of clones that can be taken from a mother plant. This process also doesn’t screen for biological impurities.
On the other hand, micropropagation ensures the continuity of THC and CBD levels in future generations and insures against crop contamination or loss by keeping a pure genetic strain ‘on file’ in case of crop devastation.
In addition, the lab is intended to develop proprietary genetic strains to optimize yield and enhance quality control on some 100 photocannabinoids, including cannabinol (CBN) and cannabigerol (CBG).
To make this a reality, CROP will need capital. Speaking of which…
In other news, CROP announced a non-brokered private placement worth up to CAD$2 million with the issuance of 6.66 million units at $0.30 per unit.
Each unit includes one common share in the company and one common share purchase warrant.
Each warrant can be exercised by the holder to purchase one additional common share at $0.50 per share for up to 24 months after the offering is closed.
The private placement is subject regulatory approval.
CROP has an extensive portfolio of projects, including cultivation properties in California, two in Washington State, a 1,000 acre Nevada cannabis grow-op and 2,115 acres of CBD farms.
The company also has an asset portfolio which includes Canna Drink, a cannabis infused beverage line, distribution rights for over 55 cannabis topical products throughout the U.S. and Italy and 15 unique cannabis brands.
In total, CROP Infrastructure has stake in over 150,000 square feet of canopy and 2,900 acres of real estate. The company has lots of property and its fingers are in nearly every pie of the cannabis sector.
If CROP can continue facilitating growers and building its project and asset portfolio as it has been, it could very well become the McDonald’s of cannabis.
There was a fair amount of activity for CROP today with over 8.5 million shares changing hands.
Share price slid slightly to end the day at $0.30 per share.
Currently the company has 132.99 million issued and outstanding shares with a market cap of $41.2 million.
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