Cannabis Company Kaya Holdings,Inc. (OTCQB:KAYS) Completes Purchase of Eugene,Oregon Based
Marijuana Grow and Manufacturing Facility in $1.55MM Deal
to Feed Kaya Shack™ Supply Chain.
KAYS to develop medical grade laboratory facilities for the production of a line of proprietary Kaya Cannaceuticals™ .
Portland, Oregon October 23, 2018 -- Kaya Holdings, Inc. (OTCQB: KAYS) announced today that it has concluded the purchase of the Eugene, Oregon based Sunstone Farms manufacturing facility, which is licensed by the OLCC (Oregon Liquor Control Commission) for both the production (growing) of medical and recreational marijuana flower and the processing of cannabis concentrates/extracts/edibles.
The purchase includes a 12,000 square foot building housing an indoor grow facility, as well as equipment for growing and extraction activity. The facility can produce in excess of 800 pounds cannabis flower annually as currently outfitted.
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Pursuant to an interim Management Agreement entered into between the parties, the Company has assumed operations of the 12,000-square foot facility pending transfer of the licenses by the OLCC to Kaya Farms, upon completion of a satisfactory compliance review.
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As part of planned expansion and renovations for the facility, KAYS (www.kayaholdings.com) has begun site improvements and is ramping up production to feed their four existing OLCC licensed cannabis retail stores which currently service the legal medical and recreational marijuana market in Oregon under the Kaya Shack™ brand (www.kayashack.com).
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KAYS will update Shareholders as to crop production in the
upcoming 3rd quarter 10-Q.
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Some of the lab equipment that was part of the purchase.
KAYS intends to utilize the processing facilities to grow their own top-shelf, connoisseur-grade marijuana flower, produce various brands of oils, edibles, concentrates and extracts, and develop medical grade laboratory facilities for the production of a proprietary Kaya Cannaceuticals™ line of both CBD and CBD/THC products for the health, skincare and medical industries.
Terms of Purchase
The purchase price of $1.3 million for the OLCC licensed marijuana production and processing facility, consisting of the building and equipment was paid for by the issuance of 12 million shares of KAYS restricted stock to the seller at closing. The shares carry a lock-up-restriction that allows for their staged eligibility for resale over a 61-month period from the date of the purchase of the facility by KAYS.
Additionally, the seller purchased 2.5 million restricted shares for $250,000 in cash in a private transaction with the Company. The funds are earmarked for capital improvements to the facility to increase both production capacity and improve efficiency
“This transaction will allow us to implement our vertical integration strategy so that we can increase both the quality and selection of marijuana flower and processed cannabis products we offer at our Kaya Shack™ stores, as well as lower our costs of goods and pass the savings on to our customers”, stated Craig Frank, CEOkip of KAYS. “Also, the success of the acquisition model - allowing us to leverage the value of our stock – encourages us to invite other cannabis companies to join under the Kaya banner and benefit from our greater value and competitive position while being able to access some of the equity that they have built in this emerging growth industry.
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You never know who you will see at the Kaya Shack.
