On 13 March 2019, CropLogic Limited (ASX: CLI), an international agronomy services company, announced that its 100% owned Oregonian subsidiary LogcialCropping LLC, has inked a lease for 150 acres for a trial farm in Deschutes County, Oregon, USA.
As per the previous announcement on 22 February 2019, the company had sourced and agreed to the terms and conditions of the landowner. The land was leased for three years and there was an option to sub-lease in years two and three. With the inking of the lease, the company is aiming to achieve another milestone to farm industrial hemp on the trial farm in the upcoming growing season in 2019.
Oregon is one among a handful of USA states, which has been a long supporter in the industrial hemp. Oregon had legalized the production of the industrial hemp, before the passing of the Farm bill in late 2018, and thus making Oregon rank among the top three industrial hemps producing USA states. As compared to other states in the US, the knowledge and infrastructure with respect to the hemp production in Oregon is better.
The company believes that the agronomy and precision agriculture team of the company, have been well positioned to crop industrial hemp in Oregon. The agronomy team has also served this region, for approximately thirty years, and has a market share as high as 30% in some crops. For the improvement of the yields grade of the CIL’s hemp biomass crop, company’s 2 digital applications CropLogic realTime and CropLogic aerial imagery would have direct applications as well.
CropLogic will now be entering the stage, where it will be experiencing a series of milestones, for cropping of industrial hemp this season. It will also comprise of the development of the farm plans in association with the preparation around the property. Based on the productivity of the trial farm, the company believes that the outcome of the plan will have a strong influence, on the final production target of the company for the 150 acres trial farm. They further expect that the production of hemp biomass, will be in the range of 180,000 lbs. to 337,500 lbs.
On 26 November 2018, the company appointed two Corporate Advisors, Green Rush Advisory Group LLC and Lawyer, Green Light Law Group, P.C, responsible for guiding the company, with respect to the current state of, and opportunities within, the industrial hemp market in Oregon, USA.
Based on the investigation into the industrial hemp market in Oregon, USA, on 6 February 2019, the company planned to pursue trial farming in Oregon.
On 7 March 2019, the company lodged an industrial hemp grower application with the Oregon Department of Agriculture, which will enable the company, to cultivate industrial hemp at the trial farm, Deschutes, County Oregon, USA.
The shares of CLI settled flat on ASX today at a market price of A$0.013 on13 March 2019. The company has a market capitalization of A$3.86 million and approximately 296.6 million outstanding shares.
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