CROP Selling Italian and Jamaican Assets for $2,000,000
VANCOUVER, British Columbia, Feb. 27, 2019 /CNW/ -- CROP INFRASTRUCTURE CORP. (CSE: CROP) (CSE: CROP.CN) (OTC: CRXPF) (Frankfurt: 2FR) announced today it has entered into a purchase and sales agreement with World Farms Corp. to divest its interests in CROP Jamaica and XHemplar S.R.L in Italy for CAD$2,000,000 worth of equity in World Farms Corp.
CROP will be retained as advisors in relation to research and development in plant science.
The investment comprises of 10,000,000 common shares in World Farms Corp ('WFC'). and represents a 19% ownership interest in WFC for CROP.
The XHemplar S.R.L joint venture facility covers 87,120 square feet. CROP and XHemplar have been working with Italian agencies to import new and unique, high CBD genetics that are expected to command premium prices.
CROP JAMAICA has a five-acre property for the cultivation and extraction of cannabis. The principal local partner is Greg Douglas. During April to November 2017, Douglas was seconded to Jamaica's Cannabis Licensing Authority (CLA) as their CEO. While there he issued the first commercial licenses.
CROP CEO, Michael Yorke, stated: "CROP has divested itself of these two international operations so that management can remain entirely focused on the expanding US operations while retaining a passive but strategic investment in an internationaly focused player offering CROP shareholders additional exposure to WFC's global growth. The company has invested approximately $100,000 between the two projects. This represents a 2,000% return on investment for CROP and its stakeholders.
"The passing of the US Farm Bill in December 2018 has been a total game changer in terms of the vast opportunities opening up right now in the US. We firmly believe in striking while the iron's hot right now on our US doorstep while maintaining exposure to infantile global opportunities."
WORLD FARMS CEO, Arthur Griffiths
"We're excited to continue where CROP has left off with assets now in South Africa, Italy and Jamaica. World will bring additional value by leveraging our 1,000,000 square feet of greenhouse canopy in South Africa for the eventual importation of cannabis & hemp products into Italy and Jamaica. Our objective is to supply the world with organic hemp and cannabis."
CROP additionally has retained Mackie Research Capital Corporation as a capital markets advisor for its ongoing financial demands. An advisory fee of $60,000 CAD and 1,000,000 warrants at $0.50 for a period of 24 months has been agreed upon.
Crop is publicly listed on the CSE and trades under the symbol "CROP". CROP is focused on cannabis branding and real estate assets. CROP's portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, 1,865 acres of CBD farms, extraction in Nevada and joint ventures on West Hollywood and San Bernardino dispensary apps with international focuses in Jamaica and Italy.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line, US and Italian distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands. CROP's infrastructure has over 150,000 sq ft of built canopy and over 2,900 acres of real estate.
Disclaimer for Forward-Looking Information
Certain statements in this press release are 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. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. 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 expected returns from the California Project; the technological effects of California Project; the intention to expand its portfolio; and execute on its business plan. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the regulatory and legal framework regarding the cannabis industry in general among all levels of government and zoning; risks associated with applicable securities laws and stock exchange rules relating to the cannabis industry; risks associated with maintaining its interests in its various assets; the ability of the Company to finance operations and execute its business plan 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.
The CSE has not reviewed, approved or disapproved the content of this press release.