On May 6, 2019 Crop Infrastructure (CROP.C) announced that it has bought a suite of Recreational Cannabis licenses and the 1,012-acre Nevada property in its Elite Ventures Group 49% interest holding.
“This is the largest transaction CROP has ever completed,” stated CEO Michael Yorke, “Crop now has the largest licensed recreational cannabis farm in the United States and perhaps the world with over 1,000 acres of which 40 acres will be planted this year.”
Crop Deal Highlights:
- Total purchase price of $8,009,000 USD.
- $4,058,100 amortized over 20 years for 843 acres of the real estate.
- $3,950,900 USD for 169 acres, including a down payment for the 843 acres.
- Option on all licenses once federally legal.
To be clear, Crop doesn’t have a 1,000 acres planted yet. But it’s got the land and the blessing of the local government to grow. That is a significant milestone.
The State of Nevada has granted Recreational Adult Use Cultivation and Product Manufacturing and Distribution licenses for the company’s Esmeralda Cannabis Project in Nevada.
Esmeralda Country has only 800 people. The least populous county in Nevada, it also has highest elevation at 2,844 meters. Established in 1861, the county was featured in Mark Twain’s mining adventure, Roughing It.
“The air up there in the clouds is very pure and fine, bracing and delicious,” Twain wrote about Esmeralda. “And why shouldn’t it be? It is the same air the angels breathe.”
Elite Ventures is on the brink of opening a 40-acre THC farm in Nevada.
Elite has cleared and graded the land for the farm in Esmeralda County, Nevada,” wrote Equity.Guru’s M.J Jordan on Jan. 3, 2019, adding that “Construction is set to begin on a perimeter security wall.”
“Elite expects to produce flower at the farm for the following strains: “Blueberry, 9 lb Hammer, Gelato, Tiffany CBD, Insane OG, Blue dream, Durban Poison, and Purple Kush.”
Crop is building a wall around the 40-acre outdoor cannabis cultivation area for 2019 on the 1,012-acre property.
Once complete, the facility is expected to yield 80,000 pounds of +20% THC per year (about 15,000 kilograms of distillate) projected from the known plant genetics at the Nevada facility.
Additionally, CBD/THC Extraction facilities will be constructed on the property in readiness for processing the 2019 crops.
The project requires an additional $250,000 in funding for completion.
Nevada is premium location for cannabis production because it has a ravenous local medical and recreational market.
The first year of legalized recreational pot in Nevada generated $500 million sales and raised nearly $70 million in tax revenue, including $27.5 million for schools and $42.5 million for a state “rainy day” contingency fund.
According to the Nevada Dispensary Association, the state could reap $1 billion in taxes from the weed business in the first 7 years of legal recreational cannabis.
The Dispensary Association projects more than 8,000 jobs will be generated during that time.
There has been some bitching recently about the awarding of Nevada dispensary licences.
In April, Time Magazine reported “Several companies have sued the state tax department, arguing that no one knows for sure the criteria officials use to award new licenses. They complain the state releases no information about who seeks and receives permission to sell cannabis to adults.”
The disgruntled dispensary applicants have asked the courts to freeze the granting of marijuana dispensary licences in Nevada, until it can be determined if the process is “arbitrary and capricious and violates the constitution.”
“I’m not saying anybody corruptly got a license,” stated Nevada attorney Vincent Savarese, “But I’m saying that if they had, the process is opaque enough to provide cover.”
One thing seems certain, when Crop’s Esmeralda County mega-farm starts harvesting, there will be local demand for the product.
Last Thursday, Crop announced its Oklahoma farm tenant been issued Medical Cannabis Cultivation and processing licenses at its one acre location in Purcell, Oklahoma, focusing on high grade flower and extraction.
This is a separate location to the company’s 20-acre property that is currently being readied for tenant planting for the 2019 season.
You need a big brain and lots of band-width to monitor everything Crop is doing.
The weird thing is, despite Crop’s sprawling ambitions, the company never seems to stumble.
No U-Turns, no write-downs, no recalled products, no delayed filings, no construction delays, no scandals.
Crop is an aggressive high-functioning bullshit-free company.
An endangered species?
You can track Crop’s growing tentacles in previous Equity.Guru articles.
Crop is a raving beauty
Crop proprietary Hemp Omega powder
Crop has production in Washington
Crop news blitz accelerates
Crop sends troops to Jamaica
Crop defies gravity
Crop buys grow facility
Crop cashes in
Crop adds beverage executives
Crop gears up
Crop CBD barn doors blow open
Crop builds farm in Nevada
Crop Signs distribution deal with Antler Retail
Nevada farm receives final inspection
Is Crop now a screaming buy?
Crop puts on the horns in California
Crop’s Washington tenant inks bulk cannabis sales agreement
Crop’s nursery ready for plants for CBD farms
Crop puts down roots in “Emerald Triangle”
The current market for extracted product in Nevada is about $20,000 per kilogram of distillate, or approximately $1,000 per lb of outdoor flower according to the Crop’s tenant consultants.
Crop is trading at .28 with a market cap of $44 million.
Full Disclosure: CROP is an Equity.Guru marketing client and we own the stock.