MJ Holdings Secures Loans, Provides Operational Update
The deadline for returning the principal of the loan is in February and March of 2021.
The financing is intended to provide the Las Vegas-based company with much-needed means to overcome economic harm inflicted by the COVID-19 pandemic.
The company's chairman and CEO, Paris Balaouras, has lent funds from his trust assets managed by Pyyros, to help the company to return its revenues to the level prior to the pandemic, said MJ Holdings President Terrence Tierney.
"Balaouras and I have waived our April and May base compensation and are working closely with our customers as we collectively begin to recover from the almost two-month shutdown of the Nevada cannabis industry," added Tierney.
MJ Holdings expects to witness a growing demand for products, as Nevada's Governor Steve Sisolak has reduced coronavirus measures last week, enabling dispensaries to reopen their stores starting May 9.
Even though the company proceeds with its 2020 cultivation schedule pursuing its spring grow of roughly 7,000 plants, it decided to postpone the five-acre expansion into 2021 due to current health circumstances surrounding coronavirus.
"We are proving, with our current grow, that we can successfully get a short cycle grow planted in early spring and harvested prior to planting our full three-acre annual crop," said Balaouras.
Last month, MJ Holdings said it anticipates to yield 1,300 pounds of cannabis per acre from this year's summer harvest.
In addition, the company plans to apply for both economic relief under the Small Business Administration's Payroll Protection Program and the Economic Injury Disaster Loan program for agricultural businesses.
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