International Land Alliance Exits CBD Hemp Joint Venture

Rhea-AI Summary

International Land Alliance (OTCQB:ILAL) has exited its joint venture with a California hemp grower to subdivide 40 acres of property in Southern California for residential home construction. The new agreement stipulates that the company will receive $150,000 over two years, including $100,000 previously loaned for property improvements. Management believes that subdividing the land aligns with the soaring demand for homes in the region, where median prices for 5-acre lots are around $250,000. This strategic move is expected to strengthen the company's balance sheet.

Positive

• Exit from the hemp lease agreement allows for a more profitable use of the property.
• Expected income of $150,000 enhances liquidity and strengthens the balance sheet.
• Strong demand in Southern California for residential homes presents a lucrative opportunity.

Negative

• None.

Profitable Short-Term Land Lease for Hemp will be Transitioned to Subdividing Property for Construction of Residential Homes

SAN DIEGO, CALIFORNIA, Dec. 28, 2021 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB:ILAL), (“ILA” or the “Company”), an international land investment and development firm, exited its joint venture agreement with a privately-held California hemp grower (“Grower”) for commercial hemp operations on 40 acres of the Company’s Southern California property to begin the due diligence process of subdividing the property for the construction of residential homes.

The Company executed a new agreement which terminated any and all of its interest, directly or indirectly, in the lease. Pursuant to the agreement the Company will be paid $150,000 over the next two years, which includes $100,000 previously loaned to the venture for the purposes of improvements to the property.

“As historic demand for homes in Southern California continues to grow, and with land prices at a premium, we believe the best use for the property now is to subdivide for the construction of residential homes. Median prices for 5-acre lots in the surrounding area are currently $250,000, creating a profitable exit opportunity and additional income as we continue to ramp up the sales and marketing of our Baja California developments and primary business. The exit further strengthens our balance sheet which will continue to help build long-term value for our shareholders,” said Frank Ingrande, President of ILA.

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.

About International Land Alliance, Inc.

International Land Alliance, Inc. (OTCQB:ILAL) is an international land investment and development firm based in San Diego, 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 serves 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.

Safe Harbor Statement

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:
Brooks Hamilton
Senior Vice President
MZ Group – MZ North America
(949) 546-6326
ILAL@mzgroup.us
www.mzgroup.us

 

FAQ

What is the recent development regarding International Land Alliance (ILAL) and its property?

International Land Alliance exited a joint venture for hemp cultivation to transition the property for residential home construction.

How much will International Land Alliance receive from the recent agreement?

ILA will receive a total of $150,000 over the next two years from the agreement.

What is the rationale behind International Land Alliance's decision to subdivide the property?

The decision is based on the rising demand for homes in Southern California and the potential for profitable residential lot sales.

What was the acquisition cost of the property for International Land Alliance?

ILA acquired the property for $1,100,000 in Q1 2019.

How does the median price of land in the area impact International Land Alliance's strategy?

Median prices for 5-acre lots are approximately $250,000, indicating a profitable potential for subdivided residential development.