CROP Infrastructure Corp. (CSE:CROP, CSE:CROP.CN, OTCMKTS:CRXPF) revealed that it had completed its acquisition of a 49% interest in Nye County farm in central Nevada.
The site has a temperate climate and totals over 315 acres, including 300 acres of private water rights, with 240 acres under automatic irrigation pivots that also have automatic fertiliser injection systems installed.
READ: CROP Infrastructure announces dispensary application moves forward; Hempire's harvest "looks phenomenal"
"We are pleased to have completed this acquisition and see our operations coming in under budget for this first harvest," said Crop director and chief executive Michael Yorke.
"This further demonstrates that our tenant and brand licensee was the correct choice for our Nevada farm. The next phase of development will be a state-of-the-art extraction facility to make high-value CBD isolate."
The company will pay US$1.35mln in cash and has already loaned US$1,697,148 for property and equipment expenses, with no more than US$200,000 in additional expenses expected for this first harvest.
The previously announced 240 acres of CBD hemp has been planted and is currently 2.5 to 3ft tall and growing under pivot with the resulting harvest expected within 45 days.
CROP added that a recent plant count suggested 3,000 healthy plants per acre or 720,000 plants under pivot.
All harvesting equipment has been secured for the resulting hemp biomass. The cost of production was not expected to exceed C$700,000, with $350,000 incurred to date, and no more than C$200,000 in additional costs expected to prepare our tenant for this harvest.
It's been a busy news week for CROP. Yesterday, it said it had received confirmation that its San Bernardino dispensary application has advanced to stage three of four of the application review process.
The company also announced its 49% Emerald Triangle cannabis production facility, which is tenanted by Hempire in Humboldt California, continues its harvest with an additional two greenhouses now drying and awaiting test results to begin selling.
Shares eased 4% to C$0.24.