Crop Infrastructure (CSE:CROP) (OTCMKTS:CRXPF) is expanding its business into Oklahoma after finding multiple tenants to engage in a roll-out strategy and target the state’s burgeoning medical cannabis market.
Crop, which is based in Vancouver, will own 49% of the new Oklahoma company and the focus of the partnership in the state will be to set up 20 acres of cultivation for medical cannabis and up to three retail locations.
Crop will put up as much as US$500,000 in initial start-up capital for the cultivation and retail locations. And once its tenants in Oklahoma are cultivating the plot, the 20 acres of cultivation set aside for medical cannabis is set to yield 30,000 lbs of dried flower per year, according to Crop’s estimates.
“This is the fourth state where the company and its brands now have a presence,” said Crop CEO Michael Yorke in a statement. “Medical cannabis is the sweet spot in this business, with, potentially, very high returns on investment, so we see this as another very significant step forward in Crop’s US-focused roll-out strategy.”
After three to five years, yearly dispensary sales in Oklahoma are expected to generate up to $250 million from medical cannabis, according to the Marijuana Business 2018 Factbook.
Crop's portfolio of other projects includes cultivation properties in California and two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of hemp CBD farms, and equity in upcoming listings within the cannabis space.
Crop shares nudged up 3.3% to C$0.31 in Canadian trade.
Contact Ellen Kelleher at [email protected]