This should be posted here every day. They are literally one in the same. They are only separate because of federal law which will change soon. Then no more need for rent checks. OPTION TO PURCHASE PEOPLE!
CGrowth Capital, Inc. Executes Commercial Lease and Option to Purchase with Wildfire Cannabis Company
Date : 05/15/2015 @ 9:30AM
Source : Access Wire
Stock : Cgrowth Capital, Inc. (PC) (CGRA)
Quote : 0.0185 0.0011 (6.32%) @ 4:30PM
CGrowth Capital, Inc. Executes Commercial Lease and Option to Purchase with Wildfire Cannabis Company
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SILVERDALE, WA / ACCESSWIRE / May 15, 2015 / CGrowth Capital, Inc. (PINKSHEETS: CGRA) (the "Company") is excited to share the details of the Lease Agreement between our wholly- owned subsidiary Chewelah Properties, LLC and Wildfire Cannabis Company, LLC ("Tenant" or "WFCC"), a Tier 3 cannabis Producer in Washington state. The five (5) year, with five (5) year renewal, Lease Agreement calls for a turn-key operational facility provided by the Company for the production and processing of cannabis by the Tenant. The Lease Agreement anticipates gross payments in excess of $2,000,000 annually, to include base rent, tenant improvements, common area maintenance charges, ancillary rentable areas, and administration fees. The Lease Agreement provides for the Tenant to increase its base rentable space by up to 33% as future business growth dictates, in turn increasing the realized rent and revenue to the Company.
In addition to the Lease Agreement, the Company is pleased to announce that it has executed an Option to Purchase Agreement ("Option") with Wildfire Cannabis Company, LLC. The Option gives the Company the right to purchase WFCC for three (3) times its net annual revenue - to be paid by half in cash and half in restricted stock of the Company - for the term of the Lease Agreement. Triggers for the Option include the Company's evaluation of current Federal regulations as they relate to the classification of marijuana as a Schedule I substance, versus the anticipated reclassification to a Schedule II substance. The Company will also continue to evaluate the progression of current banking regulations regarding cannabis, and the ability to provide proper audit accounting moving forward.
"There are so many new opportunities beginning to present themselves to our Company within the marijuana sector that we are beyond excited for what the future holds," stated Bill Wright, CEO of CGrowth Capital. "We are building on existing relationships in Colorado, California, Texas, and other progressive states for future expansion into the broader national marijuana market. By leading in with strong leasehold agreements and the ability to purchase the business at a later date, we are setting ourselves up to be a leader in this emerging market when the legal climate changes."
The Company will continue to deliver on its commitment to transparency to its shareholders and investors, as we actively pursue business opportunities within our target markets, including the cannabis market space, oil and gas ventures, precious metals, real estate development, and the advancement of our dolomite and silica holdings.
