Agtech Global International entered into a Joint Venture with City Farm Industries for a large-scale cultivation of Hemp for CBD extraction and supply.
Under the terms of this Joint Venture, City Farm Industries (CFI) will be establishing and managing a minimum of 4 cultivation “PODs” comprising a total of 32 multi-span greenhouses (320,000 square feet) on 300 acres of land dedicated to the Joint Venture.
CFI has advised Agtech that the first 2 multi-span greenhouses have arrived from China and are due for unloading at the port of Los Angeles, to be trans-shipped to CFI’s leasehold property near Hanford in the Central Valley of California.
Mark Askey, CFI’s Chief Operating Officer in charge of the Joint Venture said “CFI is holding Letters of Intent for the sale of up to 20,000 lbs. of Hemp flower per month and once all PODs become operational and production is sold, the projected return to Agtech is expected to be $10,000,000 per year.” Mr. Askey also added that “Once the Joint Venture is cashflow positive CFI plans to expand operations to establish additional PODs”
Ross Lyndon-James, Agtech’s CEO said that “The market for CBD products has improved considerably from the severe impact the COVID pandemic had on the industry in 2020". Mr. Lyndon-James further stated that "Industry forecaster Brightfield Group is projecting strong US market growth from $2.3 billion in 2020 to exceed $12 billion by 2026. We are encouraged by the market’s solid recovery and we are looking forward to exciting results in the coming year.”
CFI is based in Newport Beach, California, and has a 25-year Ground Lease on 1,600 acres with annual lease payments. To date $4.5 million has been invested by the former leaseholder on specific improvements for large-scale hemp cultivation. Improvements include land preparation, soil remediation, internal roads, drilling of 3 deep water wells, and construction of a water storage/security canal throughout and around the perimeter of the property.
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