Company progresses from LOI to MIPA3 to acquire cultivation and production licenses and to begin cultivation on proprietary land
Las Vegas, NV, Feb. 25, 2021 (GLOBE NEWSWIRE) -- MJ Holdings, Inc. (OTC Pink: MJNE) a diversified holding company, which through its subsidiaries, provides services to the regulated cannabis industry inclusive of cultivation and production management, infrastructure development and sales is pleased to inform shareholders that it has progressed from a Letter of Intent (LOI) to a Membership Interest Purchase Agreement (MIPA3) to purchase two cultivation licenses (medical and recreational) and two production licenses (medical and recreational) and transfer the appropriate licenses to proprietary land.
The MIPA3 with MJ Distributing, Inc. and affiliates (not related to MJ Holdings, Inc) provides for a closing to occur as soon as all license transfer conditions are approved, and the applicable licenses are transferred to MJ Holdings’ property (260 acres in Armargosa, NV referred to as “The Farm”). A backstop has been included in the MIPA3 to allow MJ Holdings to manage a grow under the licenses until the transaction is completed. For purposes of expediting the transactions, Paris Balaouras, Founder and Chief Cultivation Officer of MJ Holdings, Inc., has been listed as a Managing Member of the selling entities.
Mr. Balaouras noted, “In consideration of $1.250M and 200,000 shares of our common stock (Purchase Price), we will soon fully control our own destiny as we have applied to transfer the cultivation licenses to our proprietary land: The Farm. We have arranged an amicable separation under our existing management agreement with Curaleaf/Acres and are developing our cultivation facility on The Farm for our own use. With the enormous Las Vegas tourism industry soon to be on the rebound, we are well positioned to meet or exceed our fair share of demand. With the advantages of The Farm, including excellent soils, an organic grow and company owned water rights we are seeing an increase in interest from third parties who want to manage under our license. One example is our recent Management Agreement with MKC Development Group, LLC (MKC). They will lease and build out a 10-acre cultivation and management project at The Farm. We expect similar, well-funded groups to allow us to expand cultivation practices with diverse product and unique strains to meet expected customer demand.”
Roger Bloss, Interim CEO added, “As we explained in our 10-K filing in December, we are committed to accomplishing our major initiatives as we work to improve operations and increase long term shareholder value. These initiatives included completing the license acquisitions and activating The Farm. Soon we can mark these initiatives as having been accomplished. Additionally, we are very excited to begin working with MKC on their management agreement at The Farm and we look forward to adding additional similar agreements that will expand our land utilization and growing capacity. Management agreements will diversify our revenue sources and, subject to negotiated terms, will provide for substantial long term monthly revenue streams without the need for extensive capital investment.”
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. The Company’s cultivation operations include management of a three-acre co-operative for in the Amargosa Valley of Nevada. The Company currently manages a State of Nevada issued cannabis production license and expects to provide manufacturing and production facilities and resources to third party manufacturers and cultivators as part of our production campus that is currently under development. The Company also provides management consulting services to state licensed dispensaries.
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:
Roger Bloss, Interim Chief Executive Officer
roger@mjholdingsinc.com
(805) 796-6663