Crop Infrastructure Corp (CSE:CROP) told investors that it has nearly finished a 1,600 sq ft genetics, tissue culturing and micropropagation lab at its Nevada Farms, sending shares higher.
The work is being carried out by its 49%-owned subsidiary Elite Ventures.
The laboratory will aim to provide 10 million plant starts for the company's 2,115 acres of CBD farms.
By propagating in the lab, the company will save around $3 million in seed and planting costs for the 2019 season.
"The development of this genetics and micropropagation lab is further demonstration of our team's dedication to keeping our genetics portfolio and brands at the fore front of this industry," said CROP CEO, Michael Yorke.
"Teams worked steadily through the later part of the year and Holiday season on the construction and development of this lab which will save the company and our stakeholders a significant amount in 2019 and beyond."
Cannabis industry analysts The Brightfield Group, estimate the hemp-CBD market alone could reach an eye-watering $22 billion by 2022.
Last week, Crop said that the Elite subsidiary had graded and cleared 40 acres at its Nevada tetrahydrocannabinol farm and will begin construction of the security wall next week.
The Vancouver-based cannabis company said the project will be completed in time for the 2019 outdoor planting, which is forecast to yield in excess of 80,000 pounds.
The following strains have been chosen for the project: Blueberry, 9 lb Hammer, Gelato, Tiffany CBD, Insane OG, Blue dream, Durban Poison and Purple Kush.
Crop is also working with lease financiers to build a 60,000-square-foot greenhouse facility on the property to produce higher quality flower.
The farm will be protected by an eight-foot-high block wall topped with razor wire and an interior chain link combination razor wire fence with a guard tower and closed-circuit television.
The cost is expected to be $600,000, with final pricing on the greenhouse to be determined.
Crop Infrastructure shares in Toronto added 5.56% to stand at $0.38.
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