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The Signed Agreements Also Includes Purchases of Equipment and Licenses Associated with the Cathedral City Operations
LAS VEGAS, NV / ACCESSWIRE / July 22, 2022 / MJ Harvest, Inc. ("MJHI") (OTCQB:MJHI) announced today that it has signed a five-year lease agreement to occupy a manufacturing and distribution facility located in Cathedral City, California. The five-year lease agreement also includes an MJHI option to purchase the building at any time during the lease term. Management believes the building's location in the Coachella Valley in Riverside County, California, is strategically located to service the sizeable Southern California market for cannabis products.
Concurrently with the signed lease agreement, the company also closed on the purchase of manufacturing equipment and the cannabis manufacturing and distribution licenses associated with the Cathedral City operations. We are in the process of seeking approval from the California Department of Cannabis Control for transfer of the licenses. As a result of this series of agreements, MJHI intends to manufacture, market and sell the Country Cannabis, Weedsy, BLVK, Chronic and other brands into the California market by using this facility as a main hub of operations for California operations.
The signed lease with the option to buy the building solidifies one of the main goals of MJHI's management. As previously disclosed, the company is executing its plan to build shareholder value by capitalizing on its solid business base and Country Cannabis brand recognition in Oklahoma by expanding operations through acquisition and brand aggregation. MJHI is focused on building a fully vertically integrated cannabis operation in the United States with the capability of controlling seed to sale. The announcement today creates an important part of the footprint to meet that ambitious goal.
The Company also recently announced that it acquired a facility in Denver, Colorado, where it currently conducts extraction and manufacturing operations. This acquisition also included two cannabis licenses which are being transferred to the company. The Company also owns 25% of PPK Investment Group, Inc. ("PPK"), an Oklahoma corporation and owner of the Country Cannabis Brand, 10% of Blip Holdings, LLC, a California limited liability company and owner of the BLVK Brand, and 10% of WDSY, LLC ("WDSY"), a California limited liabilitycompany and owner of the Weedsy Brand.
Patrick Bilton, Chairman and Chief Executive Officer of MJ Harvest Inc. commented, "We are thrilled that we can announce this new foothold into the California market. This lease agreement in Cathedral City along with the licenses and equipment gives us the potential to rapidly expand into California with our growing portfolio of well recognized brands."