LOS ANGELES, CA, June 20, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Agritek Holdings, Inc. (OTC: AGTK) www.AgritekHoldings.com, a fully integrated, active real estate investor for the cannabis sector and consultant for multiple cannabis brands, today announced that the Company has executed a term sheet and approved funding for up to $2,500,000 in cash through a private banking partner for expansion of its cannabis operations in Puerto Rico and Colorado. The new cash infusion will be in the form of an Equity Purchase Agreement and Registration Rights Agreement allowing the Company access to capital on an as needed basis, and to further eliminate debt and retire toxic financing notes on the Company’s balance sheet.
The Agreement provides Agritek Holdings with up to two and a half million dollars for general corporate and working capital purposes. Pursuant thereto, Agritek Holdings will file a Registration Statement with the SEC to register shares of Common Stock with the right but not the obligation to direct the lender, by periodically delivering a Notice, to purchase shares at an agreed strike price against the equity line for the $2,500,000.
“The Company’s greatly improved balance sheet with the recent purchase and ownership of our 15,000 sq. ft. licensed manufacturing and cultivation facility in San Juan, Puerto Rico as a $1.5M appraised real estate asset is yet another milestone of the implementation of its strategy to become a reorganized and fully reporting public company with meaningful assets creating multiple revenue streams. The availability of over $2,000,000 for expansion of our existing and new operations through the equity line will help pay off remaining toxic debt and improve our market valuation and cap table,” stated CEO Neil Mundie
“I’m very confident that our shareholders will be rewarded in the near future and our company will continue to thrive through our long-term strategy. The proceeds of the new cash infusion through equity instead of debt financing will provide us with the capital to accelerate our growth strategy, as well as push us forward through the planned up-listing of our shares to a national exchange. We expect to immediately begin to receive rental income from our licensed partners on our real estate holdings as well as through the recent launch of our CBD brand “Chillo” gummies, water enhancers and edibles in Puerto Rico and convenience stores throughout the states,” further stated Mundie.
About Agritek Holdings, Inc.
Agritek Holdings, Inc. (www.AgritekHoldings.com), is a fully integrated, active investor and operator in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of cannabis related holdings. Currently, the Company is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property/brands, and infrastructure, with operations in three U.S. States, Canada and Puerto Rico. Agritek Holdings, Inc. presently owns or manages property in Colorado, Washington State, Puerto Rico and Canada and has licenses with permitted facilities in California approved for cultivation as well as manufacturing capabilities. The company owns several Hemp and cannabis brands for distribution including "Hemp Pops", Hemp oil wellness products and "California Premiums". Agritek Holdings Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act, nor does it intend to do so in the future.
FORWARD-LOOKING DISCLAIMER:
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein.