Crop Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) announced Wednesday that it has completed a 1,600 square feet genetics, tissue culturing and micropropagation lab at its Nevada tetrahydrocannabinol farm.
The work is being carried out by its 49%-owned subsidiary Elite Ventures.
Crop Infrastructure stock opened 0.6% higher at $0.24 on Tuesday in the OTC Markets.
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 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 building blocks needed for the perimeter security wall have been ordered and are expected to be delivered to the site “shortly” for construction, said the company.
The company also said the newly-completed building will get its “final inspection next week” from the Cannabis Licensing Board. If everything goes as planned, the board will give its approval for recreational cannabis cultivation, production and commercial kitchen.
The Vancouver-based cannabis company also announced a non-brokered private placement offering to raise up to C$2.0 million, by issuing up to 6,666,667 units at a price of $0.30 per unit.
Each unit will consist of one share and one warrant. Each warrant entitles the holder to purchase an additional share at an exercise price of $0.50 for a period of 24 months after the close of the offering. Completion of the offering is subject to regulatory approval.
Contact Uttara Choudhury at [email protected]