LOS ANGELES, Jan. 05, 2016 (GLOBE NEWSWIRE) -- PINEAPPLE EXPRESS, INC. (OTC Pink:PNPL) (the “Company”), a publicly-traded company that offers cannabis industry consulting, technology, investments, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, announced that it has executed purchase agreements for 3 new parcels in Desert Hot Springs, CA. These parcels directly adjoin the Company’s existing parcel that the Company rents to a fully permitted and legally operating cultivation tenant and consulting client who, with the Company’s assistance, recently secured a Conditional Use Permit (“CUP”) from Desert Hot Springs for medical marijuana cultivation. The Company intends to advise this tenant/client in connection with expanding its CUP and intends to rent out the new parcels to new tenants and assist them with the CUP application process. The purchases are expected to close within the next 120 days and are subject to customary closing conditions.
“We plan to repurpose the remaining acreage of the existing parcel our tenant currently uses to add three more buildings and a total of 42,000 additional square feet to the existing 23,000 square feet of warehouse space already built. We intend that the other parcels will each have one 20,000 square foot building. All together we desire 125,000 square feet of rentable warehouse space occupying about 7.5 acres,” stated Matthew Feinstein, CEO and Chairman of the Company. “We would lease to eight other cultivating tenants, besides our current tenant, on terms that are favorable for the prospective tenants and also beneficial to our growth.”
The proposed terms of the Company’s rental agreements are as follows:
- The prospective tenant/consulting client would pay $500,000 inclusive of a new 20,000 square foot modular warehouse space; city/state permitting and licensing for cannabis cultivation; and fees paid to the city/state, architects, and planners in pursuit of securing the necessary city/state approvals.
- The prospective tenant immediately signs a lease that only goes effective once permitting is approved by Desert Hot Springs. The lease rate would be set at $8 per square foot per month with no rent due for the 3 month period following delivery of a constructed modular building in vanilla shell condition. That lease rate will increase to $10 per square foot per month if and when recreational laws are enacted in California. The lease would run 10 years unless the permit is revoked through no fault of the tenant.
- Upon lease signing, the tenant pays a $160,000 security deposit along with one month’s rent of $160,000. The modular building would be constructed thereafter and the lease payments would commence after the rent abatement period. The tenant is responsible for doing their own interior build out and supplying their own cultivation equipment.
“The model we have developed in Desert Hot Springs is a winner and our current tenant and future tenants will have a once in a lifetime opportunity to enter the California ‘Green Rush’ at the right time and with the right landlord,” stated Theresa Flynt, VP of Business Development. “We urge talented and qualified cultivators to contact us for additional information.”
About Pineapple Express, Inc.
Headquartered in Los Angeles, CA, Pineapple Express, Inc. is a publicly traded company that invests in, expands, and brands existing and newly established canna-businesses through expert consulting and cutting-edge technology. We provide capital to our canna-business clientele, lease real properties to canna-businesses, and provide consulting and technology to operators within the cannabis industry. We intend to create a nationally branded chain of company- owned cannabis retail stores under the "Pineapple Express, Inc." name, as soon as federal laws allow. 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 branding/retail concept support services. Home to some of the most experienced and well-connected minds in the business, the Company is at the forefront of the legal cannabis industry.
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. More detailed information about the Company is available at www.otcmarkets.com/stock/PNPL/quote. 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.