Sign up USA
Proactive Investors - Run By Investors For Investors

CROP Infrastructure represents compelling opportunity in North American cannabis industry, says CFN Media

CROP provides turnkey greenhouse projects to licensed cannabis producers and processors
CROP Infrastructure represents compelling opportunity in North American cannabis industry, says CFN
Pictured is a cannabis greenhouse facility

CROP Infrastructure (CNSX:CROP) represents a compelling opportunity for investors in the North American cannabis industry, according to an article by CFN Media - the financial media network dedicated to the sector.

The firm provides land, infrastructure, and equipment to individual operators to increase, among others efficiency and scalability and its structure is similar to a real estate investment trust (REIT) in many ways.

Investors benefit from stable, recurring income from lease and management fee agreements, as well as real estate assets that provide a solid core, notes the article.

READ the article here

CROP provides turnkey greenhouse projects to licensed cannabis producers and processors.

The projects consist of 12 greenhouse buildings that are each 3,640 sq ft. With 1,350 plants per greenhouse, each can generate over 2,000 pounds per month or around US$2.76mln in monthly wholesale revenue.

Notably, revenues expand by around 25% once factoring in the high-grade concentrates and edibles that are produced in a state-of-the-art extraction facility on site.

Focused on Washington state..

The firm is initially focused on the Washington State market where there are 1,284 producers and processors and 436 retailers with around US$3.12bn in annual sales.

In March, CROP said that six of the 12 greenhouses are under construction at its first Washington project.

Once completed, they are projected to yield over 24,000 pounds per year, which is grown using $0.02/kw hour electricity, some of the lowest cost power in North America.

In May, the firm agreed to advance up to US$2mln to Humboldt Holdings for land and equipment purchased and the development of a 30,000 sq ft greenhouse project intended for lease and brand licensing by Humboldt to licensed cannabis tenant growers in exchange for a 30% in the company.

The California-based property consists of a 10,000 sq ft existing cannabis greenhouse and existing building permits to expand.

"The cannabis industry is projected to reach $50 billion by 2026, according to Cowen & Co, driven by the legalization of adult-use and medical cannabis across a growing number of states," said CFN.

"Despite the significant growth rates, many cultivators and processors have struggled to raise capital to finance the variety of goods and services that they need due to federal regulations that prevent mainstream lending institutions from participating in the sector’s growth."

CROP Infrastructure shares shed 1.67% to C$0.59.

Join our Crypto, Blockchain and Cannabis Telegram group here
View full CROP profile View Profile

Crop Infrastructure Corp. Timeline

Related Articles

Timber operations
July 10 2018
"Don't get fixated on hurdles in Mozambique," is the message; it's a decreasing part of the business. Far more important is securing the trade finance that would enable the company to scale-up
cannabis crop
September 17 2018
The cannabis company invests in income-producing property and agricultural equipment to service the blossoming marijuana crop industry

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use