When Kersey Ag started operations in 1901, hemp was a legal crop used for dozens of industrial and household items.
Five-score and seventeen years later, Elixinol LLC, a subsidiary of Elixinol Global (ASX: EXL) has formed a joint venture with Kersey Ag that will utilize up to 700 acres of farmland traditionally used to grow alfalfa, silage corn, and other forage crops..
The JV is called Northern Colorado High Plains Producers.
The deal sees both companies bringing equivalent value and sharing on the back end. Elixinol will inject $1.8 million into NCHPP with Kersey Ag contributing $.7 million plus long-°term lease of land and water rights (with additional land available as required). Elixinol and Kersey Ag will each hold a strategic 50% interest in the joint venture.
Kersey's operations are a good fit with Elixinol's focus on health, for example, the company already uses the newest in efficient drip-irrigation techniques and technologies with no added foreign chemicals.
The farmland, secured by an initial 5-°©year lease term extendable up to 30 years, in the pristine Northern Colorado High Plains, includes water rights.
The joint venture strengthens Elixinol’s hemp and CBD supply chain in the US..