First harvest from the CROP (CROP.C)

“I love it when a plan comes together!”

Equity Guru Client CROP Infrastructure Corp. announced this morning that the first harvest has begun at their California 1 property in Humboldt County, CA. The 10,000 square foot greenhouse at the property is the site of medical cannabis operations by CROP’s tenant, who are apparently very excited about the potential for this first go around as it goes in to the drier.

CROP has built a business model that allows them to own select aspects of cannabis operations, including the cultivation infrastructure, distribution, and royalties off of certain brands. The new venture is designed to spread the risk around a bit, while giving the company tendrils into the various aspects of this developing industry.

CROP Ventures’ California I property, Humboldt County, CA. Arial view.

The budding success of this first harvest out of their California property is being treated like a crucial milestone, because it is a crucial milestone. The tenant has plans to plant an extra 20,000 square feet of recreation plants once this harvest is done, and a good yield will bode well for the expected yield from that additional space. Well built facilities grow high-grade cannabis, and that makes for happy landlords and tenants.

The company is looking forward to more successful harvests by the tenants of their other greenhouse properties in Washington State, and from an Italian hemp farm recently acquired by way of joint venture. The Italian harvest is expected to take place later in August.

Italian hemp test crop from CROP. 30 days growth.

Don’t sleep on the CBD potential in Hemp

A similar hemp farm in Nevada, consisting of 240 acres being cultivated by a tenant, was seeded this month with 2 hemp strains that the company expects will yield 240,000 pounds of hemp flower. We’re seeing more and more industrial hemp projects, and will likely see that trend continue as CBD medicine becomes more popular. The CROP news release about their Nevada seeding quotes a survey from a trade magazine to give us an idea about what to expect from the US wholesale market for various hemp products:

Nevada hemp growers surveyed by Marijuana Business Daily report that the market is fetching:

  • $200 or more per pound for flower, depending on CBD content and quality
  • Approximately $10 per pound of food-grade seed, or $45 per gallon for seed oil
  • Approximately $200 per ton of baled fiber
  • Approximately $10,000 per Kg of CBD isolate

The next step for CROP’s Nevada hemp project is going to be to build an extraction facility. They’ve got a site lined up, and are leveling it in preparation for a permit to build.

The Value in Variety

CROP is built to give investors exposure to all aspects of the medicinal and recreational marijuana business in the US. This is a fairly unique approach that keeps a lot of bait in the water without spreading the company too thin. After figuring in a recent $1.6 million raise, CROP’s market cap works out to a micro $5.5 million dollars at their current $0.23 share price.


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