International Land Alliance Announces CBD Hemp Joint Venture Closing

Rhea-AI Summary

International Land Alliance (OTCQB:ILAL) has finalized a Joint Venture with a California hemp grower to establish a commercial hemp operation on 40 acres in Southern California.

The project is set to begin immediately following the receipt of hemp grower registration approval from Riverside County. The Company will own 50% of the Joint Venture while the Grower will contribute capital, equipment, and expertise. This initiative aims to optimize the use of two vacant 20-acre parcels acquired in 2019.

Positive

• Closure of a Joint Venture with a California hemp grower to develop a commercial operation.
• Joint Venture ownership split is 50% for both parties.
• No additional capital expenditures required from the Company.

Negative

• None.

SAN DIEGO, CALIFORNIA, Oct. 12, 2020 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB:ILAL), is pleased to announce the closing of a Joint Venture with a privately-held California hemp grower (“Grower”) to develop a commercial hemp operation on 40 acres of the Company’s Southern California property, slated to begin the production process at this time as the Company has simultaneously received its hemp grower registration approval for its property by the Riverside County Agricultural Commissioner’s Office.

As previously announced on August 26, 2020, the Company entered into an LOI with Grower for the formation of a Joint Venture, which will be owned 50% by the Company and 50% by Grower. The Company’s contribution to the Joint Venture will be the use of the 40 acres of land. Grower will contribute all required capital, consulting services, cultivation equipment, agricultural infrastructure and ability to scale hemp operations.

The Company acquired this property in Q1 2019 for $1,100,000, which included three vacant 20-acre parcels, and one 20-acre parcel with an existing 8,000 square foot event venue currently generating revenue. In Q3 2019, the Company sold one vacant 20-acre parcel for $630,000. After careful due diligence, the Company has determined that this Joint Venture is the best use and return on investment for the remaining two vacant 20-acre parcels without the Company expending additional capital.

About International Land Alliance, Inc.:

International Land Alliance,Inc. (OTCQB:ILAL) is an international land investment and development firm based in SanDiego, California. As its’ core mission, the Company has embraced technology for sustainable and socially responsible solutions, in addition to using proptech and construction tech advanced applications to meet these goals. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company erves its shareholders by devoting considerable time and resources to seeking out the finest sites available and obtaining the necessary development permits to build a compelling portfolio of properties, which provide a diversity of investment and living options. Please visit: www.ila.company.

SafeHarborStatement

The press release may include certain statements that are not descriptions of historical facts but are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects,” or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectation and actual results may vary (perhaps materially) from certain of the results anticipated herein.

CONTACT:
Investor Relations:
Renmark Financial Communications Inc.
 Steve Hosein: shosein@renmarkfinancial.com
Tel.: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

FAQ

What recent developments occurred with International Land Alliance (ILAL) regarding hemp production?

International Land Alliance has entered a Joint Venture with a California hemp grower to start a commercial hemp operation on its 40-acre property in Southern California.

What is the ownership structure of the Joint Venture by ILAL and the hemp grower?

The Joint Venture is owned 50% by International Land Alliance and 50% by the California hemp grower.

Did ILAL incur any new capital expenses for the Joint Venture?

No, the Joint Venture will utilize the 40 acres of land owned by ILAL without the need for additional capital expenditures from the Company.

When did ILAL receive approval for hemp grower registration?

International Land Alliance received its hemp grower registration approval from the Riverside County Agricultural Commissioner’s Office just before the Joint Venture announcement.