LOS ANGELES, Sept. 8, 2015 (GLOBE NEWSWIRE) -- Pineapple Express, Inc., formerly Globestar Industries (OTC Pink:GSTI) (the "Company"), a Wyoming corporation engaged in cannabis industry consulting that is applying for FINRA approval of its new name and symbol, announced that the Company on September 1, 2015, through a wholly owned subsidiary, executed a purchase agreement for three acres of real property, including 23,250 square feet of warehouse space, in Desert Hot Springs, California pursuant to a rent-to-own agreement. In addition, the Company has already subleased the property to an experienced canna-business tenant who will be operating a licensed cannabis cultivation facility on the premises. Both the property purchase and subsequent sublease have been executed, possession of the property has been turned over to the Company, and the Company is remodeling the premises to make the space suitable for the sublessee. The sublease has a term of ten years which may be extended for an additional five years at the option of the parties. The Company is scheduled to receive monthly rent of $49,000 per month in year one, $98,000 per month in year two, and $122,500 in years 3 through 10 from the subtenant, although actual rent received may vary.
"Desert Hot Springs is one of very few forward thinking California cities that permit and tax cannabis cultivation centers. As a result of the permitting, inventory of available and properly zoned properties is extremely limited within the City of Desert Hot Springs," stated Matthew Feinstein, CEO and Chairman for the Company. "This is one of our first deals and one that we have been diligently working on for months and is a good step in solidifying a footprint in California. We intend to enter into similar transactions in the future, with the goal of creating sustained revenue streams over the long term."
The Company will pay an aggregate of $3,500,000 for the property, of which $100,000 was paid on September 1, 2015, $1,000,000 will be paid in July 2016, $4,000 will be paid monthly from September 2015 through January 2016, and $50,000 will be paid monthly from January 2016 until such time as the seller moves into new facilities, contemplated between the parties to be July 2017, when the Company shall be obligated to complete the purchase and pay the remaining balance in full.
About the Company:
The Company is based in Los Angeles, California. Through our operating subsidiary Better Business Consultants, Inc. DBA MJ Business Consultants, we plan to provide capital to our canna-business clientele, assume the role as landlord and lease properties to those canna-businesses, and provide consulting and technology to develop, enhance, or expand existing and newly formed infrastructures. We intend to create a nationally branded chain of cannabis retail stores under the "Pineapple Express" name as soon as federal laws allow, which will be supported by anticipated Company-owned cultivation and processing facilities, and will feature products from anticipated Company-owned manufacturers. As long as cannabis remains federally illegal our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology, and providing ancillary support services. We believe that our competitive advantages include our wealth of experience, business model, exclusive proprietary technology, and key industry contacts in an industry that is foreign to most. It is our expectation that these factors will set us apart from most of our competitors.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.