CROP Announces Acquisition of a 30% Interest in California Cannabis Greenhouse Facility.
“Once completed, the estimated Tenant production is expected to be approximately 2,000 pounds of flower per month.”
VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) — CROP Infrastructure Corp. (CSE:CROP) (OTCMKTS:CIICF) (“CROP” or the “Company”) announces that it has entered into a Membership Purchase Agreement dated May 7th 2018 (the “Agreement”) with HUMBOLDT HOLDINGS LLC (“Humboldt”), a limited liability company incorporated under the laws of State of California, whereby the Company has agreed to advance up to US$2,000,000 to Humboldt for land and equipment purchased and the development of a 30,000 square foot greenhouse project intended for lease and brand licensing by Humboldt to licensed cannabis tenant growers (each, “Tenant”) in return for a 30% interest in Humboldt.
The property currently consists of a 10,000 square foot existing cannabis greenhouse and has an existing building permit for the development of an additional 20,000 square feet of canopy. Humboldt intends to lease the property/infrastructure and license its branding to the Tenants. Humboldt also intends to commence construction of additional proprietary greenhouses consisting of 20,000 square feet of canopy. Once completed, the estimated Tenant production is expected to be approximately 2,000 pounds of flower per month. The closing of the transactions contemplated under the Agreement constitute a “Significant Transaction” in accordance with the policies of the Canadian Securities Exchange. To date, the Company has advanced US$1,278,950 and has earned a 30% interest in Humboldt.
The Hempire Company LLC of California is the holder of a 10,000 sqft medical marijuana cultivation license and a 20,000 sqft RRR license and is currently negotiating a tenancy agreement with Humboldt to lease the property and infrastructure and has already commenced cultivation in good faith.
CROP director N. Alex Horsley states, “This acquisition represents our entry into California, the largest cannabis market in the world. Work is now underway on Humboldt’s facility to expand the greenhouse facility to 30,000 square feet of canopy with our new state-of-the-art greenhouse design. CROP continues to aggressively pursue new opportunities to expand its portfolio of tenant growers and infrastructure assets in strategic licensed jurisdictions.”
Pursuant to the terms of the Agreement, the Company has agreed to advance up to US$2,000,000 pursuant to an interest free loan which is repayable through 60% of the net after-tax profits of Humboldt. As further incentive for advancement of the loan, the Company was issued a 30% membership interest in Humboldt which is governed by the terms of an operating agreement.
About Humboldt Holdings LLC
Located in Humboldt County California, the property is 8.46 acres and currently houses a 10,000 sqft greenhouse as well as a barn, garage and residence. On site are 5 x 5000 gallon water tanks, a well and pump house and a 30×60 drying shed. The property is zoned for a 10,000 sqft medical and a 20,000 sqft RRR license.
About CROP Infrastructure Corp.
CROP Infrastructure is engaged in the business of investing, constructing, owning, optimizing and branding light supplemented greenhouse projects for lease to cannabis producers and processors offering best-in-class operations. The Company’s main focus is currently California and Washington.
N. Alex Horsley – Director
Disclaimer for Forward-Looking Information
Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the purchase, development and leasing of projects, commencement of construction of additional greenhouses, estimated Tenant production of product, the pursuit of new opportunities and the expansion of CROP’s portfolio. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company’s ability to execute on its business plan, raise additional funds as and when required, legal and political risks regarding the cannabis industry, including the changes of municipal, state, provincial and federal laws thereof, the risk that Humboldt may require further capital to execute on its expansion plans and other factors beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.