CROP Infrastructure Corp (OTCMKTS:CRXPF) (CNSX:CROP) announced Thursday that it has signed an agreement with Antler Retail Inc by which Hempire and CROP will provide Antler with finished packaged goods under the Antler brand.
Antler has received a permit for a cannabis retail location with state-wide delivery rights in California. Antler’s retail location will be in Desert Hot Springs, but it plans to take advantage of the state-wide nature of its delivery rights. The license gives Antler the freedom to target a much larger market place without the overhead costs of brick-and-mortar operations.
READ: CROP Infrastructure receives 2019 production, extraction licenses for Nevada hemp operations
CROP said it was converting the payment for the initial order into shares in Antler Retail at C$0.20 per unit by issuing 1.5 million units. Each unit will consist of one share and a warrant priced at C$0.75 exercisable for a period of 12 months.
"We believe it is a prudent move for our company to convert our finished products into shares of Antler retail,” said CROP CEO Michael Yorke. “We see this as an opportunity to not only assist Antler in entering additional states, but also as a big step forward in further establishing CROP's retail presence in a key market, while making what we believe will be a very sound investment."
As Antler makes inroads into other US states, the supply agreement will be amended to bring the Antler home brand to each new state Antler enters, said the company.
CROP’s portfolio of cannabis projects include cultivation properties in California and Washington state, a 1,000-acre Nevada cannabis farm and extraction work in Nevada.
CROP subsidiary Elite Ventures has also completed a 1,600 square foot genetics, tissue-culturing and micropropagation lab at its Nevada tetrahydrocannabinol farm.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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