MJ Harvest Announces Exit of the Weed Farm Supply Business

Rhea-AI Summary

MJ Harvest, Inc. (MJHI) has announced plans to terminate its relationship with Elevated Ag Solutions, following the underperformance of the weedfarmsupply.com website, acquired in March 2020. The lack of market interest in soils products led to disappointing sales results and gross profit margins, necessitating the return of assets to Elevated. This decision could result in a write-off or impairment of intangible assets as the unwinding process is initiated. MJHI aims to refocus its business strategy after this dissolution.

Positive

• None.

Negative

• Insufficient market interest in soils products post-acquisition.
• Disappointing sales results and gross profit margins.
• Potential write-off or impairment of intangible assets due to business discontinuation.

LAS VEGAS, NV / ACCESSWIRE / October 20, 2020 / MJ Harvest, Inc.("MJHI") (OTCQB:MJHI) announces that management is working with the principals of Elevated Ag Solutions, Inc. ("Elevated") to finalize termination of the relationship that arose when MJHI acquired intangible assets, including the weedfarmsupply.com website from Elevated in March, 2020. Since the acquisition, there has been insufficient marketplace interest in the soils products distributed through the Elevated website, weedfarmsupply.com. This created a scenario where the sales results and gross profit margins achieved, and difficulties in obtaining documentation of those sales and margins, detracted from - rather than were additive to -- MJHI. MJHI has tendered the assets back to the seller and is working toward a complete unwinding of the acquisition agreement with the principals of the seller. There is a possibility that MJHI will recognize a write-off or an impairment of the intangible assets acquired as a result of the discontinuation of this business, when the unwinding is complete.

Additional information on our Company is available at www.mjharvestinc.com , and you can visit www.procannagro.com for our current product line. Check back soon for other new and exciting announcements.

Forward-Looking Statements:

This press release contains forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company assumes no obligation to update any forward-looking statement in order to reflect any event or circumstance that may arise after the date of this release.

CONTACT:

MJ Harvest, Inc.
9205 West Russell Rd., Ste. 240
Las Vegas, NV 89148
Telephone: 954.519.3115
Tcktsllc@earthlink.net
@HARVESTMJ

SOURCE: MJ Harvest, Inc.

View source version on accesswire.com:
https://www.accesswire.com/611209/MJ-Harvest-Announces-Exit-of-the-Weed-Farm-Supply-Business

FAQ

What is MJHI's recent announcement regarding Elevated Ag Solutions?

MJHI announced the termination of its relationship with Elevated Ag Solutions due to underperformance of the weedfarmsupply.com website.

Why did MJHI decide to exit the weedfarmsupply.com business?

The decision was made due to insufficient market interest and disappointing sales results from the soils products.

What may happen to MJHI's assets from the discontinued business?

MJHI may recognize a write-off or impairment of the intangible assets acquired as a result of the discontinuation.

When did MJHI acquire weedfarmsupply.com?

MJHI acquired the website from Elevated Ag Solutions in March 2020.