CropLogic secures growing licence for major US hemp state
Written on the 18 March 2019 by Business News Australia
Agricultural technology company CropLogic (ASX: CLI) is now one of the first ASX-listed companies to receive a US hemp growers licence after authorities in the Pacific Northwest state of Oregon gave it the green light.
The news of CropLogic's licence for cultivating industrial hemp comes less than a week after the company signed a lease for 150 acres of land to grow the crop in Deschutes County, where it now expects its first crop in September.
CropLogic CEO James Cooper-Jones says the licence could allow the group potentially participate in the "exceptional returns" the group has observed from other growers in the state.
"CropLogic is very excited about this significant milestone in its strategy to crop 150 acres of industrial hemp this season," he says.
"Consumer demand for products that contain the therapeutic products of CBD, a derivative of industrial hemp, has seen a significant increase in demand.
"This follows the 2018 federal Farm Bill signed into law by President Trump in December 2018, which legalised production federally and further legitimising and simplifying the production and commercialization of industrial hemp and CBD in the USA."
The group is currently developing farm plans and preparations around the property, with observations similar acreage is producing hemp biomass of between 180,000-337,500 pounds (81,647- 153,087 kg).
The price for hemp biomass varies between grade and variety, but prices of USD$35 to USD$45 per pound (lb.) were reported in CropLogic's recent investigations into the industry.
"As one of the first ASX listed US hemp growers, the 150-acre trial farm will also allow CropLogic to demonstrate its agronomy and digital agtech technologies, particularly CropLogic
CropLogic uses technology developed over the course of decades at Plant & Food Research in New Zealand, a government-backed entity. Its listing address is in Wellington, but the head office is listed in Perth along with sales offices in Mildura and the US.
CLI shares were up 12.5 per cent today at $0.018 at 12:30pm AEDT, but that is still just over a tenth of the company's listing price at IPO in September, 2017.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Business News Australia