Hero Technologies Executes Purchase Agreement to Buy Land in Michigan for Cannabis Operations

Rhea-AI Summary

Hero Technologies (OTCQB:HENC) has signed a purchase agreement for a 10-acre property in Vassar, Michigan, for $600,000 to support its cannabis operations. The site is zoned for cannabis use, enabling adult recreational and medicinal sales. The financing terms include a 12.5% down payment and a 4.75% interest rate, with closing expected by November 2022. Hero's subsidiary, Blackbox, has pre-approval for cannabis licenses and is set to utilize a proprietary aeroponic system for cultivation. The Michigan cannabis market is projected to grow to $2.8 billion in 2022, representing a 55% increase.

Positive

• Acquisition of a strategically located 10-acre property to enhance cannabis operations in Michigan.
• Favorable financing terms with a low annual interest rate of 4.75%.
• Pre-qualification for adult recreational and medicinal cannabis licenses in Michigan.
• Expectation to tap into a rapidly growing cannabis market projected to reach $2.8 billion in 2022.

Negative

• None.

• Company enters agreement to acquire 10-acre property in Vassar, Michigan, as base for subsidiary's growing, processing, and selling cannabis within the state.
• Location supports cannabis licensing for adult recreational use, medicinal use, and retail dispensary operations.
• Company receives favorable financing terms, including down payment of 12.5% of purchase price and annual interest rate of 4.75%.

DOVER, DE / ACCESSWIRE / September 27, 2022 / Hero Technologies (OTCQB:HENC) (Twitter: @heroicmindtech), a cannabis company focused on a "seed-to-sale" vertical integration strategy, today announced that it has finalized a real estate purchase agreement for a 10-acre property in Vassar, Michigan. The purchase price is $600,000. The company plans to use the property as its base of cannabis operations in the state, including indoor and outdoor growing, processing, wholesaling, and selling directly to consumers. The property is zoned for cannabis use. The purchase is expected to close in October or November of 2022. Closing is conditioned on obtaining cannabis licenses from the Vassar Township, signing a land contract, and completing the down payment. The company paid $10,000 upon signing the purchase agreement as an earnest money deposit.

Concurrently, the company signed a binding term sheet for a land contract that will finance the purchase. Under the terms of the term sheet, the seller, Vassar Enterprises LLC, will receive $75,000 as a down payment, a 4.75% annual interest rate, low monthly installment payments for three years, and the principal balance payoff due five years from the date of the final contract. The company would also have the right to prepay any or all principal. The purchase was negotiated directly between Vassar Enterprises and the company, with no broker fees.

As part of its purchase, the company would also receive any and all existing environmental reports relating to the property. The seller stipulated in the purchase agreement that the property has no known environmental issues.

Hero Technologies will lease the property to Blackbox. Hero Technologies' subsidiary in Michigan, BlackBox Systems and Technologies LLC, projects rapid growth after establishing operations in Vassar. BlackBox has already secured pre-qualification approval in Michigan for Adult (recreational) and Medicinal Use cannabis licenses. The company's strategy focuses on greenhouses that use a proprietary aeroponic growing system and advanced quality and safety controls to produce high-yield, high-quality cannabis. The company expects to sell its cannabis products through wholesale and retail channels.

"We are delighted to report this important milestone in our company's history," said Hero Technologies' CEO Gina Serkasevich. "Michigan is a key market for us, with legal cannabis sales expected to increase as much as 55% in 2022 to $2.8 billion, according to data from the Michigan Marijuana Regulatory Agency. Our state licensing pre-approval is in place and we have made substantial progress in planning to deploy our proprietary cannabis cultivation system. Accordingly, we think the company is exceptionally well positioned to capitalize on the booming Michigan cannabis market and generate a well-deserved return for our investors."

About Hero Technologies

Hero Technologies Inc. is a cannabis company working toward a vertically-integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased harvest efficiencies. The company's strategic business plan includes cannabis genetic engineering, farmland for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multi-state operator (MSO).

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include: management plans relating to the proposed project; the expected timing of the completion of the proposed project; the ability to complete the proposed project; any statements of the plans and objectives of management for future operations, products or services, including the execution of plans proposed project; any statements of expectation or belief; projections related to certain financial metrics; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "project," "seek," "should," "target," "will," "would" and other similar words and expressions or negatives of these words. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Neither Hero Technologies Inc. nor its holding company or subsidiaries assumes any duty and does not undertake to update any forward-looking statements. Because forward-looking statements, by their nature, are uncertain or assumptive to varying degrees, actual results or future events could differ, possibly materially, from those that Hero Technologies Inc., its holding company or subsidiaries anticipated in the forward-looking statements, and future results could differ materially from historical performance.

Hero Technologies Contact:

Ms. Gina Serkasevich, CEO
(302) 538-4165 | gs@herotechnologiesinc.com

SOURCE: Hero Technologies Inc.

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FAQ

What did Hero Technologies announce on September 27, 2022?

Hero Technologies announced the signing of a purchase agreement for a 10-acre property in Vassar, Michigan, to expand its cannabis operations.

What are the financing terms for the property acquisition by Hero Technologies?

The financing terms include a 12.5% down payment, a 4.75% annual interest rate, and low monthly payments over three years.

How does the Michigan cannabis market outlook affect Hero Technologies?

The Michigan cannabis market is expected to grow by 55% in 2022, potentially providing significant revenue opportunities for Hero Technologies.

What types of cannabis licenses has Hero Technologies' subsidiary obtained?

Hero Technologies' subsidiary, Blackbox, has secured pre-qualification approval for both adult recreational and medicinal use cannabis licenses.

When is the purchase of the property by Hero Technologies expected to close?

The closing of the property purchase is anticipated in October or November of 2022.