LAS VEGAS, NV / ACCESSWIRE / February 16, 2022 / MJ Harvest, Inc. ("MJHI") (OTCQB:MJHI) announced today that its wholly-owned subsidiary, Country Cannabis Inc., a Colorado corporation ("CCCO"), has entered into an Asset Purchase Agreement dated February 8, 2022, to purchase cannabis and extraction licenses and certain equipment to operate a cannabis manufacturing facility in Denver, Colorado. The purchase price is 100,000 common shares of MJHI. With this acquisition, MJHI is now affiliated with active operations in Arizona, Colorado, Oklahoma and South Dakota, either through direct ownership or through affiliated entities, including PPK Investment Group, Inc. ("PPK"), an Oklahoma company that is 25% owned by MJHI.
The acquisition is subject to approval of the State of Colorado Department of Revenue Marijuana Enforcement Division and the City of Denver, and the closing will take place two days after both approvals are received. Pending transfer of the licenses, CCCO will operate the Denver facility under the seller's licenses pursuant to a License Agreement dated February 14, 2022, entered into by the parties. CCCO will provide intellectual property, product formulations, technical expertise and manufacturing and support personnel to the Denver operations and will receive 85% of the net operating revenues after payment of all operating expenses associated with the Denver facility. Once the license transfers are approved, CCCO will become owner-operator of the Denver facility.
CCCO is working with PPK to develop best manufacturing and quality control practices for the business and PPK will be paid fair value for the services it provides for the Denver operations.
The Denver operations are located in a leased facility. The lease term is five years with base rent of $6,000 per month and approximately $1,700 per month for triple net charges. The lease provides for base rental increases of 5% per year after the first year.
Patrick Bilton, Chief Executive Officer of MJHI commented, "This acquisition reflects our continuing efforts to expand our multistate operations by locating and acquiring assets and licenses that are available on favorable terms. I recently visited our operations in Oklahoma, and we couldn't be happier with our relationship with PPK and the Country Cannabis Brand. We continue to leverage PPK's expertise and look forward to establishing the Country Cannabis brand in Colorado in the near term."
Beginning with the PPK investment in March of 2021, MJHI has focused on expanding its operations, both through its PPK ownership interest, and as an owner-operator, to include the Country Cannabis Brand and other licensed products sold under the Chronic, Weedsy, BLVK, Sublime and Native Nations Brands. MJHI continues to seek out and evaluate brand license opportunities, and business or asset acquisition opportunities as it grows its multistate operations.
About MJ Harvest Inc.
MJHI cultivates, harvests, processes, manufactures and sells cannabis products through its growing relationship with PPK. PPK sells and markets cannabis flower and edibles throughout Oklahoma and through a joint venture relationship with the Flandreau Santee Sioux Tribe in Flandreau, South Dakota.
MJHI also acquires and markets products and technologies that are designed to benefit growers and processors in the horticultural and agricultural industries. MJHI launched www.procannagro.com to provide a professionally designed and maintained web-based marketing outlet for the company's brands and technologies.
Forward-Looking Statements
This press release contains forward-looking statements and information. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. No assurances are, or can be given, that the parties will obtain clearance for transfer of the licenses or otherwise be able to close the Asset Purchase Agreement, that the terms of the transactions will not change materially from the terms described above, or that the applicable potential transactions will be consummated. Certain conditions to the closing of the potential transaction are outside of the parties' control and the parties cannot provide any assurance that the conditions will be satisfied. The Company assumes no obligation to update any forward-looking statement to reflect any event or circumstance that may arise after the date of this release.
CONTACT:
MJ Harvest, Inc.
9205 West Russell Rd., Ste. 240
Las Vegas, NV 89148
Telephone: 954.519.3115
Tcktsllc@earthlink.net @HARVESTMJ
SOURCE: MJ Harvest, Inc.
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