CROP Increases Nevada Land Position for Hemp CBD to 2,115 Acres in Anticipation of Hemp Provisions in Farm Bill Passing
VANCOUVER, British Columbia, /PRNewswire/ --
CROP INFRASTRUCTURE CORP. (CSE: CROP) (CSE: CROP.CN) (OTC: CRXPF) (Frankfurt: 2FR) announced today its 49% owned subsidiary Elite Ventures has leased an additional 250 acres in Nevada taking the company's 2019 state holdings to 2,115 acres with 1,350 acres already under pivot irrigation.
With the new US Farm Bill now including critical provisions on hemp, CROP already announced on October 23rd, a 3-year, 1,500,000 pound, $18.0-$28.0 MM USD per year CBD biomass supply agreement in the US (depending on CBD content) and is now focusing on allocating 2019 CBD Isolate supply agreements both domestically and internationally.
Cannabis industry analysts, The Brightfield Group, estimate the hemp-CBD market alone could reach $22-billion by 2022.
CROP CEO, Michael Yorke, stated: "As you can see from our summary of the significant points of this bill, the positive impact on the industry in the US will be enormous. It will show the world that our industry is here to stay and will expand considerably, not just domestically but as we begin to work with customers globally."
In a move that marks a major shift in U.S. agriculture and drug policy, House and Senate lawmakers have come to an agreement over the status of industrial hemp in H.R. 2, The Agriculture Improvement Act of 2018. Known as the 2018 Farm Bill, H.R. 2 includes far-reaching provisions that lift the ban on hemp, authorize hemp production and research and amend the Controlled Substances Act. Furthermore, the reconciled version of the Farm Bill paves the way for the federal regulation of hemp-derived cannabidiol (CBD) extracts. For hemp CBD consumers, that would mean both better product consistency and quality and an end to the legal ambiguity of hemp CBD.
2018 Farm Bill Exempts Hemp from Controlled Substances Act
Perhaps the most striking element of the Farm Bill, however, is how it amends the Controlled Substances Act. Since 1970, hemp has been listed as a Schedule I controlled substance. But H.R. 2 would exempt commercial hemp from the Schedule I classification, so long as products meet one requirement. Hemp products must contain no more than 0.3 percent of delta-9-tetrahydrocannabinol, aka THC, by dry weight.
Several key consequences stem from this change. First, it effectively lifts the prohibition on all the other cannabinoids that can be sourced from hemp, like CBDV, CBN, CBG. Research continues to demonstrate the immense therapeutic potential of such rare cannabinoids. Under the Farm Bill's provisions, any part of the hemp plant, from its seeds to its extracts, acids, salts, and isomers are exempt from the Controlled Substances Act.
The full H.R. 2 farm bill can be seen here: https://www.congress.gov/bill/115th-congress/house-bill/2/text
Disclaimer for Forward-Looking Information
Certain statements in this press release are forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the expected returns from the Nevada Project; the technological effects of Nevada Project; the intention to expand its portfolio; and execute on its business plan. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the regulatory and legal framework regarding the cannabis industry in general among all levels of government and zoning; risks associated with applicable securities laws and stock exchange rules relating to the cannabis industry; risks associated with maintaining its interests in its various assets; the ability of the Company to finance operations and execute its business plan and other factors beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
The CSE has not reviewed, approved or disapproved the content of this press release.
Michael Yorke - CEO and Director
SOURCE CROP INFRASTRUCTURE CORP.
Company Codes: Frankfurt:2FR, OTC-BB:CRXPF, ISIN:CA2272981069, CNSX:CROP