NEW YORK, NY, Dec. 26, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Metrospaces, Inc. (OTC: MSPC) announces the execution with DLBCC Group to acquire profitable cannabis facility and operate under JV Agreement.
Mr. Oscar Brito, Company Executive President, said: “Approximately in May of 2018, the Company took a management decision to focus its resources and business plan towards the legalized cannabis industry. Our business plan is to leverage our extensive experience in real estate financing and development to establish JV partnerships to acquire and operate facility or real estate-based cannabis operations. We don’t have the industry expertise to operate a cannabis facility, but we do have extensive experience in construction, acquisition development, financing and repositioning of real estate assets. We are very excited to establish this JV LOI agreement with LBCC Group to acquire, operate and grow this facility. LBCC Group has executed a Property Purchase Agreement with the seller and is set to close in approximately 90 days. A final JV agreement and Purchase Agreement is contingent on transfer of license and senior acquisition funding. Metrospaces would provide the equity portion of the acquisition, agreed at $20 million. Metrospaces would retain 75% of the business initially, but LBCC Group can gain an additional 10% equity stake based on achievement of certain financial goals.
“The facility is located in the city of Adelanto, California and consists of a 12,000 ft2 canopy facility licensed for cultivation, manufacture, and distribution of approximately 300 lbs. of monthly cannabis production. This production currently generates approximately $7.2 million in annual revenue with an operating profit of approximately $4.5 million per year. Additionally, the site is set on a 6.5 acres site which allows to build another (already licensed) 8,000 ft2 canopy. The acquisition also includes a non-operating retail operation.
“This acquisition would introduce us in the cannabis industry through the front door. It’s a very neatly run operation, with substantial upside potential. We think it’s the perfect operation for us to focus after our very positive experience in IQSTel (OTC: IQST).”
Metrospaces was originally founded by company President Oscar Brito.
Relevant Links:
http://metrospaces.com/
http://www.iqstel.com
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Metrospaces Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.