Market Analysis: CROP Infrastructure Corp.

As you will read below, the numbers Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) has the potential to do, make this company one of the most undervalued stock plays in the cannabis sector, placing it at the top of our “Strong Buy” list.

According to RBC Capital Markets analyst Nik Modi, “The legal cannabis category [in the US] is set to grow at 17% CAGR over the next decade to as much as $47 billion in annual sales.” [1]

Capitalizing on these opportunities, cannabis branding and infrastructure specialists Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) is gaining a footprint in as many states as possible, having just launched operations into its 4th state—California, Nevada, Washington, and now Oklahoma.

Now with thousands of acres of farms in multiple states, and 16 x 100%-owned properties such as Canna Drink, a cannabis infused functional beverage line, CROP is covering all of the bases in the US and international cannabis markets.

CALIFORNIA: CULTIVATION + RETAIL

Analysts at Cowen & Co. say the nation’s legal cannabis industry could reach $80 billion by 2030 [2] with California accounting for about $25 billion of that market by 2026. [3]

Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) holds a 49% interest in 30,000 sq ft of cultivation space its Humboldt County farm—which is approved for a 2019 expansion including an additional 30,000 sq ft of greenhouse facility and vault space. The new facility is expected to yield 12,000 lbs per year, which would triple the company’s existing Californian cultivation output.

In retail, CROP has also developed its Emerald Heights retail brand, which already has locations in San Bernardino and West Hollywood. Two additional California applications are in progress.

NEVADA: HEMP/CBD + LARGEST REC GROWTH

In Nevada where cannabis retail sales in 2018 surpassed $500 million [4], Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) now has the largest licensed recreational cannabis farm in the USA, and perhaps the world.

CROP’s 1,012-acre Esmeralda Cannabis Project facility spans 1,012 acres is starting with the planting of 40 acres of outdoor cultivation space, with additional CBD/THC Extraction facilities set for construction to process 2019 crops. Once completed, the project is expected to yield 80,000 pounds of +20% per year of THC, or approximately 15,000 kg of distillate. The current market for extracted product in Nevada is approximately $20,000 per kg of distillate, or approximately $1,000 per lb of outdoor grown flower.[9]

CROP also completed construction on its state-of-the-art 57,600 sq ft nursery in Nye County designed to maximize CBD yields, reduce farming risk and costs for the 2019 planting season.

In Nevada, CROP has amassed 2,115 acres of hemp CBD farms.

OKLAHOMA: HIGH-THC, HIGH VALUE MEDICINAL MARKET

In the next 3-5 years, annual dispensary sales in Oklahoma are expected to generate up to $250 million from medical cannabis. [5]

Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) has cleared and prepped 20 acres of outdoor harvest space, and leased a 32,000 sq ft specialized building for drying. The 20-acre property—with an infrastructure cost of only $500,000—is estimated to yield 30,000 lbs of dried flower per year. At a reported price of $2,200 per pound, The Oklahoma market is reportedly receiving cannabis prices $1,000 per pound more than the national average. [6]

Through its brands and tenants, CROP is positioned to provide for the Oklahoma market with a vision of vertical integration, that could lead to edibles and oils markets that are quickly gaining dominance.

WASHINGTON: RETAIL AND BRANDING HAVEN

In 2018 the Washington cannabis market was $534.06 million [7] and is forecasted to hit $1.76 billion by 2025. [8]

In Grant County, Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) is growing product for the Tiffany, Hempire, and Evolution brands in its 35,000 sq ft state-of-the-art canopy facility. The facility’s major advantage is its low-cost electricity ($0.02/kWh) and greenhouse style growing, making it one of the most efficient growing operations for high quality product in the state.

The brands are already seeing success, and are now available in 40 retail locations along the state’s coastal cities. The products are available in both the flower and oils/extracts form.

Under construction, CROP is building another 44,000 sq ft canopy cultivation site to grow for the Evolution, Tiffany, and Trikom brands, with an additional 114,000 sq ft expansion planned.

For an even broader picture of CROP, feel free to follow THIS LINK to read the in-depth report written by American News Group

Sincerely,

Equity Insider
News Administration


References

1- https://markets.businessinsider.com/news/stocks/marijuana-cannabis-us-legal-market-could-be-worth-47-billion-2018-8-1027477326

2- https://ca.finance.yahoo.com/news/cannabis-poised-80-billion-industry-222331008.html

3- https://www.prnewswire.com/news-releases/california-cannabis-market-expected-to-reach-51-billion-market-value-685917412.html

4- https://cannabusinessplans.com/nevada-cannabis-market/

5- https://cannabusinessplans.com/oklahoma-cannabis-market/

6- https://ktul.com/news/local/the-high-price-of-marijuana-in-oklahoma

7- https://www.marketwatch.com/press-release/crops-tenant-brands-hempire-and-evolution-now-available-in-40-retail-locations-with-over-100-available-skus-2019-04-03?mod=mw_quote_news

8- https://www.statista.com/statistics/798096/washington-cannabis-sales-value-forecast/

9- https://cropcorp.com/crop-completes-purchase-of-1012-acre-nevada-property-with-newly-awarded-recreational-cannabis-licences/


Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Crop Infrastructure Corp. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Crop Infrastructure Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Crop Infrastructure Corp. which were purchased as a part of a private placement that was entered into on June 28, 2018. MIQ will not buy or sell shares of Crop Infrastructure Corp. for a minimum of 72 hours of the above mentioned date, but reserve the right to buy and sell, and will buy and sell shares of Crop Infrastructure Corp. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Share:
Scroll Up