MJ Holdings To Buy Cultivation And Production Licenses For 'The Farm'
MJ Holdings Inc. (OTC:MJNE) agreed to buy two cultivation and two production licenses, and transfer the proper licenses to its land.
A provider of management and consulting services to cannabis enterprises previously signed a letter of intent in regards to licenses purchase and has now progressed into a Membership Interest Purchase Agreement.
The deal will close once all license transfer requirements are set, and the licenses are moved to MJ Holdings’ property — “The Farm.”
MJ Holdings added that the agreement enables it to cultivate under the licenses, prior to the finalization of the transaction.
To accelerate the transaction process, the company’s founder and CCO, Paris Balaouras, has been chosen as a managing member of the selling entities.
“In consideration of $1.250M and 200,000 shares of our common stock (Purchase Price), we will soon fully control our own destiny as we have applied to transfer the cultivation licenses to our proprietary land: The Farm,” Balaouras stated.
“We have arranged an amicable separation under our existing management agreement with Curaleaf/Acres and are developing our cultivation facility on The Farm for our own use. With the enormous Las Vegas tourism industry soon to be on the rebound, we are well positioned to meet or exceed our fair share of demand," he added, citing how The Farm touts its amenities to appeal to third parties that want to manage under the company’s license.
“One example is our recent Management Agreement with MKC Development Group, LLC (MKC). They will lease and build out a 10-acre cultivation and management project at The Farm," Balaouras concluded. "We expect similar, well-funded groups to allow us to expand cultivation practices with diverse product and unique strains to meet expected customer demand.”
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