Fantastic. And from there … I also recently wrote about how America may be the next frontier and here is Alliance once again looking south of the border. So a repeat of our last question … what light can you shed on this to our more than 110,000 active subscribers?
The East Africa project is essentially a turn-key operation to grow medical Cannabis for export to the EU, primarily Germany. We are starting with 10 acres and are able to increase up to 100 acres, as this project has 3,000 acres in total and there will be multiple partners. The cultivation plan includes being GACP and GMP certified (German standards) and robust enough, to ensure constant supply to primary German pharmacies but also other European countries once they're fully legalized and regulated. We will be involved in projects in two locations. Both locations are situated close to the equator, both have the requisite sunshine and rainfall , tested and suitable soils, plus natural water readily available. Labor and taxes have been set in all our locations at the lowest levels seen globally, and logistics are secure and transparent.
We are in early discussions to partner with Crop Infrastructure Corp., (CROP) doing a similar deal that was done between CROP and MYM Nutraceuticals Inc., (MYM). MYM partnered with CROP’s subsidiary, Elite Ventures Group LLC., on 120 acres of CBD-rich hemp in Nevada, USA.
Under the agreement, MYM funded Elite with $500,000 USD in exchange for the rights to 50% of CBD rich hemp grown on a 120-acre parcel of land in Nevada. In consideration for the investment, Elite will provide all the necessary capital and consumable supplies, plant, grow and harvest the hemp.
Elite will also arrange for the processing and sale of Alliances portion of the biomass at no less favourable terms that those found in the Elite’s other supply agreements. Based on Elite’s previous success in cultivating 120 acres of similarly situated land in August 2018, the estimated production of hemp from Alliances proposed parcel is 120,000 pounds per harvest with a CBD level of 10%-19%. This represents potential revenue of over $26 million, of which Alliance will be entitled to 50% less processing and sales fees.
How our agreement will be different is that we would partner with Elite on growing the CBD-rich proprietary hemp strain, CBD Dana that is available to us through one of our Canadian strategic partners. With CBD Dana we will be planting disease free, genetically perfect tissue culture, female only plantlets as opposed to seed, thus requiring approximatey only 20 40 acres to achieve the same revenue potential.
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