- CropLogic has started shipping biomass material from its trial hemp farm in Oregon
- Once the orders are completed, CropLogic will get $15.4 million dollars
- Its harvesting timeline remains on track and cutting, field drying, and combining is proving successful
- CropLogic has ended the day down 5.77 cents apiece with shares trading for 4.9 cents each
Agtech business CropLogic, has started shipping biomass material from its trial hemp farm in Oregon, U.S.
This forms part of a supply agreement for CropLogic’s subsidiary, LogicalCropping LLC, to supply biomass in weekly shipments with payments in US dollars to follow each delivery.
Biomass is the universal name given to any plant or animal material that is used for energy production.
Once these deliveries are completed, the total supply agreement value is US$10.5 million (A$15.4 million).
“The commencement of shipping biomass is a significant milestone in the hemp trial farm,” CropLogic CEO James Cooper-Jones said.
“This milestone caps off the seed to sale story for the hemp trial farm and speaks volumes to CropLogics agronomy, farm management and agtech expertise,” he added.
CropLogic has advised the harvest timeline remains on track however, there remains an element of ‘dialling in’ of machinery and processes to the extent that would be commonly expected on a project of this size.
But this is also progressing well.
The methodology of windowing (row of cut hay or small grain crop), field drying and combining the biomass has also been successful to date.
Since the biomass material is at a good consistency, it has appealed to investors with the potential elimination or reduction for the need of brushing.
This not only reduces the costs but also streamlines the harvesting process for this year and any eventual expansions.
The harvesting process has reached a position where CropLogic’s warehousing procedure is now being implemented.
This includes bagging, weighing and tagging, then storing for sales.
The remaining step in the process includes post-harvesting works however, this can only occur in November-December.
CropLogic has ended the day down 5.77 per cent with shares trading for 4.9 cents apiece in a $21.66 million market cap.