ECGI Holdings Creates Nug Avenue Subsidiary - Announces Definitive Agreement for Cannabis Delivery Services in Thriving Los Angeles Marketplace

Rhea-AI Summary

ECGI Holdings, Inc. (OTC PINK: ECGI) is expanding in California's cannabis market by signing a management services agreement to enter the cannabis delivery business with a Lynwood-based license holder. ECGI's wholly owned subsidiary, Nug Avenue, Inc., will manage this new venture. The company plans to sell up to 70% of Nug Avenue while retaining 30% ownership. This follows ECGI's recent acquisition of prime California real estate for cannabis cultivation. CEO William Chung emphasizes the company's focus on distressed cannabis assets and expects ongoing growth in the Los Angeles delivery market.

Positive

• Signed management services agreement to enter cannabis delivery business.
• Established wholly owned subsidiary, Nug Avenue, Inc.
• Plans to sell up to 70% of Nug Avenue, retaining a 30% stake.
• Recent acquisition of prime real estate for cannabis cultivation.

Negative

• None.

LOS ANGELES, Feb. 09, 2021 (GLOBE NEWSWIRE) -- via InvestorWire – ECGI Holdings, Inc. (“ECGI” or the "Company") (OTC PINK: ECGI), which plans to operate as Elite Cannabis Group and has been reorganized as an acquisition-oriented corporation with California-based targets of distressed cannabis assets, properties zoned for cannabis cultivation and processing, today announces its second agreement within the fast-growing California regulated cannabis market. The Company has signed a definitive management services agreement to enter the cannabis delivery business in conjunction with a California cannabis license holder operating out of Lynwood, California. 

ECGI created a wholly owned subsidiary, Nug Avenue, Inc., a California Corporation, which will hold the contract with the licensed party. The Company plans to enter into an additional agreement whereby it will sell up to 70% of the Nug Avenue unit to a third party, allowing the Company to retain and report an approximately 30% ownership.

“We are continuing to expand our investments within the California cannabis market,” commented William Chung, CEO of ECGI. “Last month, we announced the acquisition of prime Northern California real estate that is zoned for cannabis cultivation with this new invesment opportunitiy targeting the even faster-growing area of cannabis delivery. We plan on announcing our additional partnerships relating to this new agreement over the coming weeks, if not sooner. We are in the process of vetting additional similar transactions as part of our strategy to acquire distressed assets and other cannabis-related businesses with long term and hyper-growth potential.”

According to multiple industry watchers and California cannabis regulators, the California market continues to grow rapidly.  Much of this growth is driven by the delivery market, which is especially strong in the Los Angeles Metro area. 

Mr. Chung added, “We expect the growth trends within the Los Angeles market to continue and we are positioning our investment direction appropriately. We plan to provide our investors with additional details on this transaction, our plans for the business operation of the delivery business, and concerning other possible cannabis-related investments over the coming days and weeks.”

About ECGI Holdings, Inc.
ECGI Holdings, Inc., which plans to operate as Elite Cannabis Group, is reorganizing as an acquisition-oriented corporation with California-based targets of distressed cannabis assets, properties zoned for cannabis cultivation and processing, and cannabis companies operating in market sectors with national expansion possibilities. Additional information on the Company can be gained by contacting info@ecgiholdings.com.

Forward-looking Statements
This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to, economic conditions, changes in the laws or regulations, demand for products and services of the Company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.

For more information, please contact:

William Chung
Info@ECGIholdings.com
SOURCE: ECGI HOLDINGS, INC.

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FAQ

What recent agreement did ECGI Holdings announce?

ECGI announced a management services agreement to enter the cannabis delivery business in California.

What subsidiary did ECGI create for its new cannabis delivery business?

ECGI created Nug Avenue, Inc. as a wholly owned subsidiary to manage the new delivery venture.

What percentage of Nug Avenue will ECGI retain after the planned sale?

ECGI plans to retain approximately 30% ownership of Nug Avenue after selling up to 70%.

How is ECGI positioning itself in the California cannabis market?

ECGI is targeting distressed cannabis assets and properties zoned for cultivation and processing.

What are ECGI's future plans regarding additional partnerships?

ECGI plans to announce additional partnerships related to its cannabis delivery business in the coming weeks.