MYM Nutraceuticals Inc. (CSE: MYM) announced yesterday that they and their joint venture partner, Elite Ventures, a Crop Infrastructure Corp (CSE: CROP) subsidiary, had reached planting stage for its joint hemp project. The 120 acre hemp project is based in Nye County, Nevada.
The joint venture between MYM and Crop’s subsidiary was announced March 3, when it was revealed that the grow is expected to yield 120,000 pounds of hemp. The CBD rich strain being utilized is ideal for extraction, posting levels of 10-19% CBD.
While we didn’t write on the topic when first announced, The Deep Dive was publicly critical of the move. This is the result of MYM being required to invest US$500,000 in Crop Corp’s asset to retain 50% of the expected $26 million in revenue from the grow operation, less processing and sales fees. While great for MYM Nutraceuticals shareholders, the deal does not appear to be favorable for Crop Corp investors on the basis that it is a minimal fee to pay for such a large portion of revenue.
The joint venture entity had announced in April that they had acquired 1.6 million seeds for the project. They have since planted these and grown them to seedlings, which are now ready to be transplanted to the outdoor grow site. The grow itself will be managed by Elite Ventures, and is to be completed using pivot irrigation.
While Crop Corp’s initial news release on the joint venture indicated that they expect revenues to be a combined US$26 million, MYM Nutraceuticals was much more conservative in their estimate, providing $7.1 million as revenue guidance for the project in their latest release. This revenue is expected to come from the sale of 2,694 lbs of CBD isolate in the first quarter of 2020.
MYM and Elite Ventures expect seedlings to be transplanted in the near term.
MYM Nutraceuticals closed yesterdays session at $0.31, flat on the day.
Information for this briefing was found via Sedar, MYM Nutraceuticals Inc and Crop Infrastructure Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
