Plans for Development, Operation and Management of State-of-the-Art Cultivation and Processing Facility on Behalf of Arizona Licensee
CARSON, CA, April 26, 2018 (GLOBE NEWSWIRE) -- Solis Tek, Inc, a Nevada corporation, (“SLTK”), a vertically integrated cannabis technology innovator, manufacturer and distributor, announced today its execution of a letter of intent to wholly acquire a limited liability company (“Arizona Operator”), providing turn-key services related to the management, administration and operation of a licensed medical marijuana cultivation and processing facility in the State of Arizona.
In December 2010, Arizona voters passed the Arizona Medical Marijuana Act, A.R.S. §36-2801 et seq.(the “Act”), which became effective on April 14, 2011, at the time, making Arizona the fourteenth state to pass medical marijuana legislation. As of March 31, 2018, Arizona had 162,528 active Qualifying Patient Registry Card holders, a 31% increase from the year before. Additionally, in March, Arizona dispensaries transacted for more than 9,534 pounds of medical marijuana, boasting a 44% increase from the year before.
Arizona Operator entered into an exclusive Management Services Agreement with an Arizona nonprofit organization (“Arizona Licensee”), that was awarded a Medical Marijuana Dispensary Registration Certificate (“License”) by the Arizona Department of Health Services (“AZDHS”), pursuant to the Arizona Department of Health Services Medical Marijuana Program. The License allows for the operation of an offsite cultivation and processing facility, to which the Arizona Operator has obtained the exclusive right to acquire, develop, manage and operate in conjunction with the Arizona Licensee, in exchange for certain management fees. The acquisition of the Arizona Operator is in keeping with SLTK’s previously announced decision to take advantage of opportunities in the cannabis industry.
In anticipation of this acquisition, SLTK has executed an Option Agreement for the right to enter into a long-term lease agreement with a local land owner, for the lease, use and occupancy of an expansive facility comprised of more than 70,000 square feet, which will be developed into one of the most technologically advanced cultivation and processing facilities in the State of Arizona.
“We are thrilled to be able to execute on this opportunity in Arizona as SLTK’s first “touch-the-plant” operation. Arizona has witnessed continued growth in its medical marijuana program and demand remains strong. We are excited to commence Phase 1 of the development and construction of our state-of-the-art cultivation and processing facility and look forward to many additional opportunities in the cannabis industry,” stated Alan Lien, SLTK, Chief Executive Officer.
About Solis Tek, Inc.
SLTK is a vertically integrated cannabis technology innovator, developer, manufacturer and distributor focused on developing and providing high quality products and solutions to commercial cannabis operators in both medicinal and adult use markets across the United States. For nearly a decade, cultivators have depended on SLTK’s lighting solutions to increase yield, lower costs and produce higher-quality products, maximizing returns on investment and solidifying their position in the legal cannabis industry. SLTK’s client base includes retail dispensaries, processors, distributors and commercial cultivators throughout the United States and abroad. For more information, please visit our website, www.solis-tek.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect SLTK’s current plans and expectations, as well as future results of operations and financial condition. SLTK undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.