Las Vegas, NV, May 13, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- MJ Holdings, Inc. (OTCPK: MJNE) (the “Company”): While the Covid-19 pandemic has caused the Nevada cannabis industry to face many challenges over the past seven weeks, most Las Vegas dispensaries have reopened under new social distancing rules. We are starting to see increased demand for product at the retail level and hope that our dispensary customers will start placing orders from us in the next few weeks.
The Company has received approximately $200,000 in short term financing from loans made by Pyyros One, LLC (“Pyyros”). The Company’s Chairman and CEO, Paris Balaouras, is the sole beneficiary of the trust that manages Pyyros. The principal, of the interest only loans, is due in February and March of 2021 and is being utilized to cover a portion of lost income due to Covid-19. “We are grateful that our CEO was willing to lend funds from his trust assets to the Company during these difficult times; this has helped us to weather the storm until our revenues return to pre-pandemic levels,” stated Terrence Tierney, the Company’s President. Mr. Tierney also said, “Mr. Balaouras and I have waived our April and May base compensation and are working closely with our customers as we collectively begin to recover from the almost two month shutdown of the Nevada cannabis industry.” The Company’s senior executives will continue to closely monitor the Company’s short-term cash requirements and will seek additional capital as necessary. In light of a recent federal court ruling, the Company will apply for additional economic relief under the Small Business Administration’s Payroll Protection Program and the Economic Injury Disaster Loan program for agricultural businesses.
The Company is moving forward with our existing 2020 cultivation schedule, including a first in Nevada springtime grow, but we have decided to push our planned five-acre expansion into 2021 due to the uncertainties surrounding Covid-19. Paris Balaouras stated, “We are proving, with our current grow, that we can successfully get a short cycle grow planted in early spring and harvested prior to planting our full three-acre annual crop.” The Company expects its total 2020 production to exceed 6,000 lbs. of marijuana flower and trim. Current inventory should be sufficient to fulfill anticipated demand until our current grow is harvested in late June.
The Company will continue to assess the impact of Covid-19 on the Nevada cannabis industry and we will make adjustments to our operations as necessary. We hope to begin rehiring our farm personnel over the next few weeks.
About MJ Holdings, Inc.
MJ Holdings Inc. (OTCPK: MJNE) is a diversified holding company providing services to the regulated cannabis industry. Through our subsidiaries we provide cultivation and production, management services as well as infrastructure sales and development. Our cultivation operations include management of a three-acre co-operative for in the Amargosa Valley of Nevada. We currently manage a State of Nevada issued cannabis production license and expect to provide manufacturing and production facilities and resources to third party manufacturers and cultivators as part of our production campus, which is currently under development. We additionally provide management consulting services to state licensed dispensaries. We are also active in identifying and seeking to acquire revenue producing assets and licenses within legalized cannabis markets both nationally and internationally.
Safe Harbor
The information provided in this press release may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "plans," "expects," "intends," "will," "potential," "hope" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. The parties do not undertake any obligation to update forward-looking statements contained in this press release.
Company Contact:
Al Reasonover
Al@mjholdingsinc.com