Crop Infrastructure has completed September site visits in Nevada with its consultants and joint venture partners at the hemp and THC farms where weeds have caused major losses.
After drone reconnaissance, and sample plant counts were completed, it was established that eight of 10 of the company’s hemp pivots have been severely affected by invasive weeds.
In several northern pivots, a herd of antelope also caused significant damage. The company’s operating partner had employed a farming method of planting cover crops to keep the weeds away, however, it was not effective with the exception of all but two pivots.
The company and joint venture partner are further reviewing the causes of the operational failure. The company has decided to release the leased 850 acres of lost pivoted crops and focus on the remaining pivots covering 500 acres.
Crop further announced today that the proposed sale of the Nevada THC asset has now lapsed and the agreement has been terminated. CROP will continue to look for suitable joint venture partners, purchasers, or will continue developing and planting the farm in the 2020 season.
$51,024.87 has been received in warrant exercises at $0.13 since its previous announcement of the early warrant incentive program.
As a result of the disappointing harvest and to make CROP more attractive to potential partners the company has been working with its associate companies in order to prepare the exercise options it holds to increase its ownership on its various assets, the strike price of which is USD $500 each. The company will prepare its books for the audit and accounting implications of increasing its ownership at each subsidiary.
Michael Yorke, CEO, stated: “We have been humbled by the realities of commercial scale farming with hard lessons learned, but we are determined to forge ahead and we are readying our teams to complete the harvesting of the remaining hemp in Nevada, and THC in California, Washington and Oklahoma as the October harvest season is just around the corner.
“The company has always planned to increase its ownership of its various assets, though we had previously looked to do this after the project had achieved a profitable milestone.
“As state rights become stronger and with banking provisions falling into place, CROP will now look to take a control position just as soon as our accounting department has declared we are in a position to do so.”