International Cannabis Company Kaya Holdings Receives Buy Rating, Fair Value Estimate of $0.89 in Fundamental Research Corp Profile

Rhea-AI Summary

(OTCQB:KAYS) U.S. Cannabis Company to Leverage First-Mover Advantage in Greece and Israel- Initiating Coverage

Kaya Holdings, Inc. (KAYS) has received a Buy Rating and a Fair Value Estimate of $0.89 from Fundamental Research Corp. The company operates in Oregon and is expanding into Israel and Greece, with projects that require funding for facility buildout. The U.S. cannabis market is expected to grow significantly by 2024, while Europe’s market is projected to reach $146.37B by 2028. KAYS has plans for a $45M raise for its Greek project and aims to expand retail stores into Israel upon legalization.

Positive

• Buy Rating and Fair Value Estimate of $0.89 from Fundamental Research Corp.
• U.S. cannabis market expected to grow to $30-$37B by 2024.
• European cannabis market projected to reach $146.37B by 2028.
• Completion of Greek project license and expected Israeli license soon.
• Plans for 14 new brands to launch this year.

Negative

• Need to raise $45M for Greek project, which indicates financial reliance on external funding.
• European operations in very early stages, posing execution and market entry risks.

(OTCQB:KAYS) U.S. Cannabis Company to Leverage First-Mover Advantage in Greece and Israel- Initiating Coverage

FT. LAUDERDALE, FL / ACCESSWIRE / March 22, 2021 / Kaya Holdings, Inc., ("KAYS" or the "Company") (OTCQB:KAYS), confirmed today that Fundamental Research Corp ("FRC") has initiated coverage of KAYS with a Buy Rating and Fair Value Estimate of $0.89.

According to FRC's website, FRC is one of the largest independent research houses in the world, with a 17-year track record of covering 550+ companies, and as of March 12, 2021

FRC's top picks were up 76.4% on average since initiation of coverage.

The report was filed under cover of 8-K Friday, March 19 after market closes and is in process of being released to their subscribers and others over the next few weeks and contains the following highlights:

• KAYS is a U.S. based vertically integrated cannabis company with operations in Oregon, currently in the process of expanding operations in Israel and Greece. We expect near-term growth to come from its U.S. operations, with the European operations expected to be the primary long-term driver.

• KAYS has two production facilities and two retail outlets in Oregon. The retail stores sell own company and third-party brands. KAYS has four active brands, with 14 in pipeline to be launched this year, per management.

• The company will operate in Greece through a Joint Venture with a local Greek cannabis company, and in Israel, through its majority owned subsidiary. The Greek project received its Development License, and the Israeli project is expected to receive its license this month. Both countries' operations require fundraising for buildout of facilities. Management also mentioned plans to expand its retail store chain into Israel, upon legalization of recreational cannabis.

• With the U.S. political shift creating federal U.S. legalization optimism, the U.S. marijuana market is projected to grow to $30-$37B by 2024 (from 17.5B in 2020). With over twice the population of the U.S. and Canada combined, Europe's cannabis market is projected to reach $146.37B by 2028 (from $3.5B+ in 2020). (various sources).

• Both Israel and Greece have recently opened up their medical cannabis industries. Israel is the largest importer of cannabis in the world, and is expected to legalize recreational cannabis in 2022.

• In February 2021, the company announced plans to raise $45M for

its Greek project.

• We believe that favorable market conditions in Oregon, and expanded operations of Kaya, should allow it to ramp up revenue growth. Kaya's European expansion plans are in very early stages.

• U.S. based cannabis stocks are currently trading at a discount over their Canadian peers. We expect this trend to change with federal legalization in the U.S., and anticipate KAYS to directly benefit.

To access a copy of the report cut and paste the following link in your browser:

https://www.dropbox.com/sh/2wj4miefkqairww/AAA3uHUPWg3BmAz19rHOMCjHa?dl=0

Disclosure: Fundamental Research Corp was compensated by KAYS to produce this report. According to FRC's website, FRC is one of the largest independent research houses in the world, with a 17-year track record of covering 550+ companies, and as of March 12, 2021 FRC's top picks were up 76.4% on average since initiation of coverage.

Kaya Kannabis Medical Cannabis Production Facility
in Thebes, Greece (Project Design Rendering)

Disclosure: Fundamental Research Corp was compensated by KAYS to produce this report.For complete disclosure please access the disclosure directly from their research report

About Kaya Holdings, Inc. (www.kayaholdings.com)

Kaya Holdings, Inc. (OTCQB: KAYS) is a touch-the-plant vertically integrated legal cannabis company operating a number of majority-owned subsidiaries that retail, cultivate, produce and distribute premium medical and recreational cannabis products, including flower, concentrates, oils and extracts, cannabis-infused foods and beverages, topicals and cannaceuticals. KAYS is a fully reporting, US-based publicly traded company, listed for trading on the OTCQB Tier of the over-the-counter market under the symbol OTCQB:KAYSD.

Summary of Operations

KAYS corporate structure includes the following three majority-owned subsidiaries, each responding to various demands and opportunities in the cannabis industry:

Marijuana Holdings Americas, Inc. owns the Kaya Shack™ brand of licensed medical and recreational marijuana stores (www.kayashack.com) and the Kaya Farms™ brand of cannabis production and processing operations that operate in the United States.

Kaya Brands USA, Inc. owns a wide range of proprietary brands of cannabis extracts, oils, pre-rolls, topicals, food and beverages, cannaceuticals and related accessories.

Kaya Brands International, Inc., was founded to serve as the vehicle for the Company's non-U.S. operations including retail franchising in Canada and cultivation activities in Greece and Israel.

Marijuana Holdings Americas, Inc.- U.S. Cannabis Operations

Kaya Shack™ Retail Cannabis Stores

In 2014, KAYS became the first United States publicly-traded company to own and operate a Medical Marijuana Dispensary. KAYS presently operates two Kaya Shack™ OLCC licensed marijuana retail stores to service the legal medical and recreational marijuana market in Oregon and is in the process of relocating a third retail cannabis license to serve as a delivery hub for the Eugene and Southern Oregon Cannabis Market.

Kaya Farms™

Eugene, Oregon Indoor Grow, Processing & Cannaceutical Facility: The Company owns a 12,000 square foot Kaya Farms™ indoor grow and manufacturing facility in Eugene, Oregon, which serves as the Company's center for cultivation trials, method experiments, genetic research and cannabis infused product development. The Company is presently conducting limited operations at this location under a Management Agreement with Sunstone Farms, the current licensee. Pending the successful acquisition and transfer of other existing OLCC Marijuana Production and Processing licenses, KAYS intends to build out the facility and ramp up to full production.

Lebanon, Oregon Farm & Greenhouse Facility: KAYS owns a 26-acre parcel in Lebanon, Linn County, Oregon which it intends to construct an 85,000-square-foot Kaya Farms™ greenhouse cultivation and production facility. To date KAYS has received Linn County Zoning approvals and upon issuance of OLCC Licensing it will begin construction. The farm is intended for immediate development and provides the Company with a potential additional capacity of more than 100,000 pounds annually, to be expanded once export from Oregon to other U.S. States and foreign countries where cannabis use is legal is permitted. Kaya Farms™ operates in accordance with a Grow Operations manual, as well as manuals for compliance, employment matters and safety.

Kaya Brands USA, Inc.- Brand and Product Development

The Company maintains a genetics library of over 30 strains of cannabis and owns a number of proprietary brands in traditional and innovative cannabis categories including Kaya Buddies™ pre-rolls, Really Happy Glass™ cannabis accessories, and Kaya Gear™, company-related and cannabis-centric fashion. These brands are currently available at Kaya Shack™ stores.

The Company has made advances in the development of its Kumba Extracts™, Syzygy Extracts™, Pakalolo Juice Company™ Soothe Topicals™, Tony Giggles Pleasure Foods™ (frozen infused Italian entrees), Uptown Shaman™ (cannaceuticals), and Kaya Yums™ (chocolates, gummies, power bars) brands. Pending approval of our production and processing license, KAYS intends to begin a multi-state rollout planned in 2020 to the extent permitted by U.S. legal infrastructure. These brands are intended for all Kaya Shack™ stores, both corporate-owned and franchised.

Kaya Brands International, Inc.- Foreign Cannabis Operations

After over six years of conducting "touch the plant" U.S. cannabis operations inside the strict regulatory confines of a public company, KAYS has formed a subsidiary, Kaya Brands International, Inc. ("KBI") to leverage its experience and expand into worldwide cannabis markets. KBI's current operations and initiatives include:

Kaya Kannabis- Kaya Farms™ Greece S.A. ("Kaya Farms Greece," a Greek Corporation) is a majority owned subsidiary of KBI. The Company has just exercised its option (pursuant to terms of a previously disclosed 8-K filing) for Kaya Farms Greece to acquire a 50% interest in Greekkannabis, PC, an Athens, Greece based cannabis company which has received its license for the construction of a facility encompassing approximately 500,000 square feet of buildings on 15 acres of land outside of Athens, Greece to grow, process and export medical grade cannabis from Greece to the European Union and elsewhere.

Kaya Farms™ Israel- Kaya Shalvah LTD ("Kaya Farms Israel," an Israeli Corporation) is a majority owned subsidiary of KBI. Kaya Farms Israel is in the process of applying to various Israeli Government Agencies for a license to grow, process and export medical grade cannabis from Israel. Upon submission of the initial application to the Israeli Cannabis Authority, Kaya Shalvah intends to submit a bid to acquire 100 Dunams (approximately 25 acres) of land in Israel that is part of Greenegev, an Israeli Government backed Cannabinoid Ecosystem in Yerucham, Israel that is envisioned to become the Silicon Valley of Medical Cannabis Production and Research.

These two facilities, as currently envisioned (and after obtaining successful financing, completing construction and obtaining final requisite licensing), are configured to produce approximately 600,000 pounds of GMP Certified, Premium Medical Grade, Cannabis annually for potential export to the European Union and elsewhere.

Canadian Franchising: KAYS has targeted Canada (the only G7 country that has legalized both medical and recreational cannabis production, sale and use on a national level) for its first international sale and operation of Kaya Shack™ cannabis store franchises, with a goal of 75-100 Kaya Shack™ Cannabis Retail locations throughout Canada through a multi-year structured rollout, subject to licensing and market conditions. KAYS has retained Toronto, Canada based law firm of Garfinkle Biderman, LLP to prepare the Franchise Disclosure Documents and related items for the sale of Kaya Shack™ cannabis store franchises in Canada. KAYS plans to ultimately expand its franchise operations to the U.S., as regulations and laws permit.

Important Disclosure

KAYS is planning execution of its stated business objectives in accordance with current understanding of state and local laws and federal enforcement policies and priorities as it relates to marijuana. Potential investors and shareholders are cautioned that KAYS and MJAI will obtain advice of counsel prior to actualizing any portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of marijuana products, engaging in said activities or acquiring existing cannabis production/sales operations). Advice of counsel with regard to specific activities of KAYS, federal, state or local legal action or changes in federal government policy and/or state and local laws may adversely affect business operations and shareholder value.

Forward Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For more information contact Investor Relations: info@kayaholdings.com or 561-210-7664

SOURCE: Kaya Holdings, Inc.

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FAQ

What is KAYS's stock symbol?

KAYA Holdings trades under the stock symbol KAYS on OTCQB.

What Buy Rating did KAYS receive from Fundamental Research Corp?

KAYS received a Buy Rating and a Fair Value Estimate of $0.89.

What are KAYS's expansion plans in Europe?

KAYS plans to expand operations in Greece through a joint venture and in Israel through a majority-owned subsidiary.

How much does KAYS plan to raise for its Greek project?

KAYS announced plans to raise $45 million for its Greek project.

What is the expected growth of the U.S. cannabis market by 2024?

The U.S. cannabis market is projected to grow to $30-$37 billion by 2024.