NUGS Announces Fully Executed MOU to Acquire Large Capacity Indoor Cannabis Cultivation Facility
Cannabis Strategic Ventures (NUGS) announces a Memorandum of Understanding to acquire 10% of an indoor cannabis cultivation facility in Sacramento, CA, valued at $15 million for the entire site. The MOU also includes an option to purchase an additional 41%, achieving a controlling stake of 51%. The facility's potential includes 500 grow lights and the ability to produce over 7,000 lbs. of premium cannabis flower annually. CEO Simon Yu emphasized this acquisition as a strategic move to enhance production capacity and strengthen NUGS's position in California's cannabis market.
- Acquisition of 10% of a $15 million facility with an option for a controlling 51% stake.
- Potential production capacity of over 7,000 lbs. of premium cannabis flower annually.
- Enhances positioning in California's cannabis market and supports expansion into the dispensary sector.
- None.
LOS ANGELES, Oct. 27, 2021 (GLOBE NEWSWIRE) -- via InvestorWire -- Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. cannabis marketplace, is pleased to announce the signing of a Memorandum of Understanding (the “MOU”) between Cannabis Strategic Ventures and Devine Solutions, Inc., a California corporation, relating to the proposed acquisition by NUGS of an indoor cannabis cultivation facility (the “Facility”) in Sacramento, CA.
According to the terms of the MOU, the Company intends to purchase
The Facility is approximately 15,600 square feet and has the potential to house an estimated 500 grow lights. It is projected to produce 2-3 lbs. of premium exotic cannabis flower per light per harvest across an estimated 5.75 harvests per year, suggesting an upside potential of over 7,000 lbs. of premium cannabis flower per year.
Simon Yu, CEO of NUGS, commented, “This deal represents the potential to sharply increase our premium cannabis production capacity and materially augment our status as an emerging leader in the vertically integrated California cannabis marketplace. We have already amassed years of experience refining our cultivation methods and strains in an outdoor framework with our NUGS Farm North site. Adding a top-tier indoor cultivation operation stands to help us further build upon that success and drive more volume in the premium flower market, which has powerful implications given our recent expansion into the dispensary marketplace with our MDRN Tree downtown LA dispensary location. The combination grants NUGS expanding operations at both ends of the farm-to-sale model.”
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About Cannabis Strategic Ventures
Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm's NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
For more information, visit http://www.CannabisStrategic.com.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
Corporate Contact:
Email: IR@CannabisStrategic.com
Website: http://www.CannabisStrategic.com
Public Relations:
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Corporate Communications Contact:
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FAQ
What is the significance of the MOU between Cannabis Strategic Ventures and Devine Solutions?
How much cannabis can the Sacramento facility potentially produce?
What is the financial valuation of the cannabis facility being acquired by NUGS?
How does this acquisition impact NUGS's operations?
