The American cannabis market is exploding ñ what is already a $10 billion market is expected to reach almost $25 billion within 3 years. Even better, many investors havenít seemed to notice this rapid growth.
But because cannabis is still illegal on the federal level in America it is extremely difficult for companies to get the funding they need to jump into the market.
Already two companies with similar models have seen gains of 113% and 191%. Now that CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) plans to perfect that model are even bigger gains ahead for it in the future? Letís take a closer look.
American Cannabis Market Larger Than Canadaís
With Canada on the verge of legalizing cannabis on October 17, 2018, a lot is being reported about that market and many investors are turning their attention to it.
But hereís the truth: last year, in 2017, the entire Canadian cannabis market was about $5.7 billion, including non-medical (illegal) consumption.
By contrast, Americaís legal cannabis sales did almost double that at $10 billion, and are expected to hit $24.5 billion by 2021, an incredible growth rate of 28%! And remember, most investors havenít seemed to notice the growth yet creating an incredible opportunity for those that do.
What to Do When ëTraditionalí Financing Options are
Off the Table
Currently, only a few companies are active in the United States cannabis business because there is a ìmassiveî barrier preventing their entry – and this barrier is creating a golden opportunity for the few companies that have gotten past it like CROP.
You see, in America, despite the massive size and growth rate of the cannabis market, American marijuana producers are finding it extremely difficult to get funding because cannabis is still illegal federally.
Forbes Magazine recently reported in an article entitled ìLegal Weed Entrepreneurs Finding New Funding Options,î ñ ìThe big banks wonít open a checking account for them, let alone lend them money, because cannabis production, processing and selling is still illegal at the federal level. Banking and financing options are limited Ö.î
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) has created a business model that is similar to a REIT (Real Estate Investment Trust). The company basically invests in profit-producing real estate. By doing this, it enjoys short-term profits from leasing its properties/facilities and it also enjoys long-term profits by maintaining ownership interests in the properties/facilities.
Hereís a Closer Look at What CROP Does:
The company invests in income-producing property and agricultural equipment to service the growth of the specialty crop industry.
CROP leases its real estate and provides equipment/expertise in exchange for a management fee. Agreements include the use of CROP branding and use of the CROP ìSafety Approvalî rating system through access to a preferred network of suppliers.
One big advantage of this business model is that the company receives both current cash flow and ownership interest in its property/infrastructure.
The model also increases producers and processorsí ability to achieve sector growth by delivering funding accessibility and by driving efficiency, scalability, and sustainability through affordable leasing programs and reasonable management fees.
The ëREITí business model is relatively new to the cannabis market in America. A couple of companies have used similar models but CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) is taking it to the next level.
- Innovative Industrial Properties Inc. (NYSE:IIPR) Market Cap: $250.7m
Considered to be the first ëCannabis REITí, this company focuses on acquiring medical-use cannabis facilities and offering producers both capital and real estate solutions. Over the past year, this stock has returned 113% to investors.
- CannaRoyalty Corp. (NYSE:IIPR)Market Cap: $194.4m
While not exactly a ëREITí business model, this company directly invests in licensed cannabis businesses in exchange for royalties, equity, convertible debt, or licenses. Its stock has returned 191% to investors over the past year.
CROPís strategy involves expanding and building state-of-the-art greenhouses in prime locations across America. The companyís roll-out portfolio consists of 44,000 square feet of canopy and the company has built the blueprint and framework for an aggressive expansion in 2018.
By providing modern canopies and related infrastructure, CROP aids specialty producers to maintain a competitive edge in one of the most extraordinary opportunities of our generation.
The completion and subsequent leasing of each property is a major catalyst for short term growth, meaning multiple potential movers for its stock price.
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) has been able to buy and develop the properties thanks to a strong funding foundation that includes a private placement worth $4.35 million that it completed in May 2018. The private placement gives CROP convertible debt that it is using to proceed full speed ahead with development.
Hereís what the company has accomplished so far:
#1 Humboldt, California
Current Property Size: 10,000 square feet
Expanded Property Size: 30,000 square feet
Final Production Capability: 24,000 lbs of flower per year
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) Humboldt property puts it in the perfect position to benefit from Californiaís cannabis boom, a market that is forecast to hit $3.7 billion in legal cannabis sales this year (a figure that may be more than all of Canada put together).
#2 Washington State MEGA Greenhouse
Current Property Size: Under construction, almost 50% complete
Completed Property Size: 12 x 3,680 square feet greenhouses, total of approximately 44,000 square feet
Final Production Capability: 24,000 lbs of flower per year
Once in full operation, the company estimates this facility will generate $38.4 million in annual revenue. With an electrical rate of only $0.02/kWh (far below the US industrial average of 6.64cents/KWh ), production costs are estimated to be less than $150 per pound. This low cost will allow CROP Infrastructure Corp. (CSE:CROP)(OTC:CRXPF) tremendous flexibility in the marketplace.
#3 Washington State Greenhouse No. 2
Completed Property Size: 35,000 square feet of state-of-the-art canopy
Production Capability: 10,000 lbs of flower per year
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) has also acquired an interest in a technologically advanced cannabis production facility that has been retrofitted for full hydroponic automation including sophisticated irrigation. The greenhouse is also outfitted with 500 Gavita HPS grow lights, a top-rated industry standard.
#4 Nevada Greenhouse
Status: Development Beginning Shortly
Completed Property Size: close to 2,000,000 sqft. of greenhouse spaceProduction Capability: to be determined. Find out more here.
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) is strategically staging themselves with a critical property footprint in Nevada state. With 300 acres of land and 300 acres of water rights in Las Vegas country, they are building the largest operation in the state, close to 2,000,000 sqft. of greenhouse space, with development beginning shortly.
Introducing the CROP Management Team
CROPís leadership is packed with intelligent, experienced innovators who see an incredible opportunity in this space and are committed to setting their company up for success before others even realize what is going on.
The management team includes:
Michael Yorke, CEO & Director ñ
Mr. Yorke began his career in the financial sector with the Royal Bank of Canada in 2001. He subsequently served as an active trader and value investor for the last 14 years. He went on to provide consulting services to several publicly traded companies in addition to organizing capital market events with On-Page Media.
Abbey Abdiye, CFO ñ
Mr. Abdiye brings extensive experience in the financial sector with both public and private companies. He is a Chartered Professional Accountant (CPA) and current CFO of Tower One Wireless Corp.
Christine Mah, Director ñ
Ms. Mah brings 10 years direct experience working with reporting companies assisting with corporate management, systems integration, accounting procedures and administrative services.
Twila Jensen, Director ñ
Ms. Jensen is a senior capital markets strategist with Stockhouse, Canadaís leading financial community and a global hub for affluent investors, with over one million unique monthly visitors.
David Weinkauf, Executive Advisor ñ
Throughout Mr. Weinkaufís real-estate career he led and was involved in approximately $3.0 Billion in transactions while developing around 3,000 acres of real estate.
With Its Management Team, Assets & Funding, CROP is Currently an Under-the-Radar Company in an
Under-the-Radar Market Ö
But It Wonít Stay That Way for Long!
As more and more investors begin to notice the incredible opportunity that currently exists in the American cannabis market they are most likely to put their money in companies with the strongest assets, the strongest funding and the strongest leadership teams.
CROP excels in all of those areas. CROP has been quietly acquiring numerous valuable cannabis assets and properties ñ building a mini-cannabis empire if you will ñ while most other companies havenít been aware of what was going on.
This allowed CROP to obtain its assets at great prices because nobody else was clued into this massive opportunity yet ñ now itís time for CROP to reap the benefits of that foresight.
In other words, will the public markets start reacting?
The company is planning to expand into other states across the country while also evolving its business model to become an end-to-end producer, from growing all the way to branding.
Already the company provides financing for land expansion, turnkey state-of-the-art greenhouse facilities, brand positioning opportunities, specialized equipment, and access to approved nutrients for select licensed producers in legal growing regions.
And about the companyís 44,000 square feet of canopy ñ as an investment vehicle, modern greenhouse canopies offer the highest quality production environment at the lowest potential cost to growers.
Remember, companies with business models similar to CROP have already made huge returns for early investors …
Thatís why CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) may be an attractively-priced early stage opportunity for investors looking for both capital gains and dividends in the American cannabis market.
Letís recap what makes CROP such a unique Cannabis company in the rapidly expanding yet still under-the-radar American cannabis market:
Very Few (If Any) Cannabis Companies Have ALL of the Following Going for Them:
Factor #1 ñ The American Cannabis Market is Growing Rapidly AND Being Completely Overlooked Right Now!
The American cannabis market, even without federal legalization, far outpaces the Canadian market, which is supposedly todayís ìred-hot marijuana market.î With $10 billion in legal sales in 2017 that is projected to increase to $24.5 billion by 2021, this is the true growth opportunity that savvy investors should be looking at. California itself may be bigger than the entire Canadian market. Add to this rapid growth the facts that this market is currently a ìhidden gemî and its potential for investors begins to really leap out.
Factor #2 ñ Innovative Business Model Positions Company for Success
The companyís REIT-like business model allows it to generate both short-term and long-term profits. Few other companies in this market are able to say that and the few that do employ a similar business model have seen tremendous growth recently ñ and have some very happy shareholders, too!
Factor #3 ñ One of the Only Fully-Funded Cannabis Companies
CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) is moving quickly to expand and take its California and Washington State properties into production. The development of each property could be significant revenue generators. In all, the company has over 44,000 square feet of canopy and with the recent private placement worth $4.35 million the funding place in place to grow rapidly.
Factor #4 ñ Visionary Leadership Team at the Helm
CROP Infrastructure Corpís (CSE:CROP); (OTC:CRXPF) leaders saw both the massive profit potential in this market as well as the unique profitability of the REIT business model. The company has already, before other companies have realized what is happening, accumulated truly valuable holdings that will allow the company to generate profits over both the short-term and long-term.
Factor #5 ñ Ability to Win a Price War With Anyone
The companyís MEGA Greenhouse facility enjoys electricity costs of just $0.02/kWh and estimated production costs of under $150 per pound. These numbers will allow CROP Infrastructure Corp. (CSE:CROP); (OTC:CRXPF) tremendous flexibility in pricing products and has company leaders believing that they can win a price with anyone should it come to that in the future.
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