Kaya Holdings Inc. (KAYS)

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Marijuana Retailer and Producer Kaya Holdings, Inc. (OTCQB:KAYS) 10-Q Reports Nearly 60% year-over-year Increase in Revenues for the first six months of 2018, Additional Financing and Preliminary Agreement to Purchase Eugene, Oregon Marijuana Grow and Manufacturing Facility:

https://finance.yahoo.com/news/marijuana-retailer-producer-kaya-holdings-125000987.html

FORT LAUDERDALE, Fla., Aug. 21, 2018 (GLOBE NEWSWIRE) -- Kaya Holdings, Inc. (KAYS), filed its Quarterly report after close of market yesterday afternoon.

Developments include higher revenues, additional financing and the signing of a preliminary agreement for the acquisition of a 12,000 square foot grow and manufacturing facility that will enable the Company to begin feeding the Kaya Shack™ supply chain beginning November 2018.

Revenues. We had revenues of $291,133 for the three months ended June 30, 2018, as compared to revenues of $ 199,790 for the three months ended March 31, 2017, and revenues of $546,498 for the six months ended June 30, 2018, as compared to revenues of $ 344,651 for the six months ended March 31, 2017. That’s a 45% year-over-year increase in revenues for Q-2 of 2018 versus 2017, and a nearly 60% year-over-year increase in revenues for the first six months of 2018 versus the same period of 2017.

The increase is largely due to the fact that in 2017 our Portland Store was unable to process recreational sales for the first quarter due to a delay in receiving our Portland City Licensing. As a result, revenues from legal recreational sales were largely generated from retail sales at one outlet during most of the 2017 period, as compared to three outlets in the comparable period in 2018. All four of the Company’s retail locations have now received full OLCC licensing.

Financing. During the first six months of 2018, the Company received over $1.155 million in financing for its operations- a total of $855,000.00 in financing from the Cayman Venture Capital Fund (CVCF), its Institutional Financing Lender and another $300,000 from private placement stock subscriptions. That’s a total of approximately $4.2 million from CVCF alone since the end of 2016, with an additional $5.3 million in additional funding due from them over the next three years pursuant to the current agreement. Additionally, the Company has begun to develop access to other sources of long-term investment capital, some details of which are in the 10-Q along with the details of the CVCF Funding Agreements.

Preliminary Agreement to Purchase Eugene, Oregon Marijuana Grow and Manufacturing Facility in $1.55 Million Deal. On July 31, 2018 KAYS announced that it had entered into a preliminary agreement to purchase a Eugene, Oregon Marijuana Grow and Manufacturing Facility in a $1.55 million deal. The deal includes an asset acquisition agreement to purchase a 12,000 square foot indoor marijuana grow and manufacturing facility with a current production capability of 800 pounds of high quality medical and recreational cannabis annually. The seller also holds a production license for the manufacture of extracts, oils and edibles, as well as the machines and equipment necessary to begin production and processing, which will be included as part of the real estate purchase. To date the parties have completed the first stage of the transaction for $250,000. The funds are earmarked for capital improvements to the facility to provide for increased grow production and more efficient product manufacturing.

Kaya Farms™ Medical and Recreational Marijuana Grow and Manufacturing Complex in Linn County, Oregon. While KAYS hasn’t yet gained an approval for the site plan review for the indoor and outdoor marijuana grow operation on the 26.50-acre property, the case is proceeding through the system and KAYS’ attorneys have requested a hearing before the Land Use Board of Appeals (LUBA) and is awaiting a hearing date. KAYS’ land is zoned Exclusive Farm Use (EFU), and pursuant to Linn County Code (LCC) Section 928.310(B)(1), indoor and outdoor marijuana production operation is a use allowed outright as a farm use on the subject property, and we are cautiously optimistic we will prevail and begin to set up growing operations at the farm in 2019.