Kaya Holdings Inc. (KAYS)

[abracky]

 International Cannabis Company 
Israeli Subsidiary Receives Initial Approval for Cannabis Cultivation and Processing License
 
 
Approval Sets Stage for Development of Kaya Farms Israel Facility at Green Negev, Israel’s “Silicon Valley” of Medical Cannabis 
 
 
Ft. Lauderdale, Fl., March 30, 2021 - Kaya Holdings, Inc., (“KAYS” or the “Company”) (OTCQB.KAYS), the first U.S. publicly traded company to vertically integrate cannabis retail, cultivation and processing, announced today that its Israeli subsidiary, Kaya Shalvah (Kaya Farms Israel) has been awarded its initial permit from the “YAKAR”, the Department for Medical Cannabis in the Israeli Ministry of Health, to develop an Israeli cannabis cultivation and processing facility.
 
 
 
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Kaya Shalvah (Kaya Farms Israel) Medical Cannabis production Facility,
Green Negev Cannabis Complex, Yerucham, Israel (Project Design Rendering).
 
 
 
This initial permit grants the Company permission to proceed with its plans to develop commercial scale cannabis cultivation and processing site at the Green Negev cannabis complex in Yerucham, Israel, pending a tender for the land. Once the Company develops the site in accordance with all Israeli regulations, and meets all requisite standards), the final cultivation and processing licenses are issued.
 
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“Israel has long been a center of cannabis research, pioneered by Hebrew University Professor Dr. Raphael Mechoulam, who jumpstarted the medical cannabis revolution with his breakthrough discovery of tetrahydrocannabinol (THC),” stated KAYS’ CEO Craig Frank, “and we have already met extraordinary entrepreneurs with whom we hope to cooperate. Israel offers an attractive market, access to additional markets and close proximity to an excellent knowledge base and cutting-edge technologies, which will aid us as we execute our international growth plan. With this important piece of our puzzle in place we can pursue the remaining elements of our strategy including footholds in other important emerging markets”. 
 
“Getting this formal permission to commence development of our planned facility in Yerucham again demonstrates our progress in seeking to establish KAYS as an effective competitor in the international cannabis market,” continued Frank. “It is our expectation that eventually the market will recognize the promising opportunities we have lined up and our steady execution. We strive to have our value better reflect our potential”.  
 
Kaya Shalvah plans to construct its Israel facility in accordance with Israeli standards, including IMC-GAP (Israel Medical Cannabis-Good Agricultural Practices) for cultivation, IMC-GMP (Israel Medical Cannabis-Good Manufacturing Practices) for production, IMC-GSP (Israel Medical Cannabis-Good Security Practices) for security, and IMC-GDP (Israel Medical Cannabis-Good Distribution Practices). Kaya Holdings’ interests in the Israeli registered company Kaya Shalvah is controlled through a majority owned subsidiary, Kaya Brands International, Inc.
 
Earlier this year, KAYS Greek subsidiary Kaya Farms Greece exercised an option to acquire a 50% interest in Greekkannabis, its Greek Joint Venture partner. The Kaya Farms Israel and Kaya Farms Greece projects are the foundation for KAYS international expansion, targeted to service the increasing demand for medical cannabis in the European Union, which is forecast to exceed $146 Billion by 2028, according to Fundamental Research Corp. 
 
These two facilities, as currently envisioned are planned to produce approximately 600,000 pounds of GMP Certified, Premium Medical Grade, Cannabis annually for potential export to the European Union and elsewhere.
 
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Kaya Holdings Research Report- KAYS Receives Buy Rating, Fair Value Estimate of $0.89 in Fundamental Research Corp Profile that highlights First-Mover Advantage in Greece and Israel
 
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 According to FRC’s website, FRC is one of the largest independent research houses in the world, with a 17-year track record of covering 550+ companies,
and as of March 12, 2021
FRC’s top picks
were up 76.4% on average since initiation of coverage.
 
The report was filed under cover of 8-K Friday, March 19 after market closes and is in process of being released to
their subscribers and others over the next few weeks
and contains the following highlights:
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KAYS is a U.S. based vertically integrated cannabis company with operations inOregon, currently in the process of expanding operations in Israel and Greece. We expect near-term growth to come from its U.S. operations, with the European operationsexpected to be the primary long-term driver.

 

In 2020 (9M), the company reported $774K in revenue, up 7% YoY.

 

KAYS has two production facilities and two retail outlets in Oregon. The retail storessell own company and third-party brands. KAYS has four active brands, with 14 inpipeline to be launched this year, per management.

 

The company will operate in Greece through a Joint Venture with a local Greekcannabis company, and in Israel, through its majority owned subsidiary. The Greekproject received its Development License, and the Israeli project is expected to receive itslicense this month. Both countries’ operations require fundraising for buildout of facilities.Management also mentioned plans to expand its retail store chain into Israel, uponlegalization of recreational cannabis.

 

With the U.S. political shift creating federal U.S. legalization optimism, the U.S.marijuana market is projected to grow to $30-$37B by 2024 (from 17.5B in 2020).With over twice the population of the U.S. and Canada combined, Europe’s cannabismarket is projected to reach $146.37B by 2028 (from $3.5B+ in 2020). (various sources).

 

Both Israel and Greece have recently opened up their medical cannabis industries. Israel isthe largest importer of cannabis in the world, and is expected to legalize recreationalcannabis in 2022.

 

In February 2021, the company announced plans to raise $45M for its Greek project.

 

We believe that favorable market conditions in Oregon, and expanded operations ofKaya, should allow it to ramp up revenue growth. Kaya’s European expansion plans are invery early stages.

 

U.S. based cannabis stocks are currently trading at a discount over their Canadianpeers. We expect this trend to change with federal legalization in the U.S., and anticipateKAYS to directly benefit.

 

To access a full copy of the report, complete with Disclosures and Risk Factors  cut and paste the following link in your browser:

 
 
https://www.dropbox.com/sh/2wj4miefkqairww/AAA3uHUPWg3BmAz19rHOMCjHa?dl=0
 
 
 
Kaya Kannabis Medical Cannabis Production Facility 
in Thebes, Greece (Project Design Rendering)
 
 
 
 
 
 
Disclosure: Fundamental Research Corp was compensated by KAYS to produce this report.
 
 
 
 
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About Kaya Holdings, Inc.- (www.kayaholdings.com)
 
 
Kaya Holdings, Inc. ("KAYS") is a touch-the-plant vertically integrated legal cannabis company operating a number of majority owned subsidiaries that retail, cultivate, produce and  distribute premium medical and recreational cannabis products, including flower, concentrates, oils and extracts, cannabis-infused foods and beverages, topicals and cannaceuticals. KAYS is a fully reporting, US-based publicly traded company, listed for trading on the OTCQB Tier of the over-the counter market under the symbol OTCQB:KAYS (KAYSD a/o 2020 12 15).
 
Summary of Operations
 
KAYS corporate structure includes the following three majority-owned subsidiaries, each responding to various demands and opportunities in the cannabis industry:
 
 
 
Marijuana Holdings Americas, Inc. owns the Kaya Shack™ brand of licensed medical and recreational marijuana stores (www.kayashack.com) and the Kaya Farms™ brand of cannabis production and processing operations that operate in the United States.
 
Kaya Brands USA, Inc. owns a wide range of proprietary brands of cannabis extracts, oils, pre-rolls, topicals, food and beverages, cannaceuticals and related accessories.
 
Kaya Brands International, Inc., was founded to serve as the vehicle for the Company’s non-U.S. operations including retail franchising in Canada and cultivation activities in Greece and Israel.
 
 
 
Marijuana Holdings Americas, Inc.-
U.S. Cannabis Operations 
 
Kaya Shack™ Retail Cannabis Stores
 
In 2014, KAYS became the first United States publicly traded company to own and operate a Medical Marijuana Dispensary. KAYS presently operates three Kaya Shack™ OLCC licensed marijuana retail stores to service the legal medical and recreational marijuana market in Oregon. 
 
Kaya Farms™ 
 
Eugene, Oregon Indoor Grow, Processing & Cannaceutical Facility:  The Company owns a 12,000 square foot Kaya Farms™ indoor grow and manufacturing facility in Eugene, Oregon, which serves as the Company's center for cultivation trials, method experiments, genetic research and cannabis infused product development. The Company is presently conducting limited operations at this location under a Management Agreement with Sunstone Farms, the current licensee. Pending the successful acquisition and transfer of other existing OLCC Marijuana Production and Processing licenses, KAYS intends to build out the facility and ramp up to full production.
 
Lebanon, Oregon Farm & Greenhouse Facility: KAYS owns a 26-acre parcel in Lebanon, Linn County, Oregon which it intends to construct a 85,000-square foot Kaya Farms™ greenhouse cultivation and production facility. To date KAYS has received Linn County Zoning approvals and upon issuance of OLCC Licensing it will begin construction. The farm is intended for immediate development and provides the Company with a potential additional capacity of more than 100,000 pounds annually, to be expanded once export from Oregon to other U.S. States and foreign countries where cannabis use is legal is permitted. Kaya Farms™ operates in accordance with a Grow Operations manual, as well as manuals for compliance, employment matters and safety.
 
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Kaya Brands USA, Inc.-
Brand and Product Development
 
The Company maintains a genetics library of over 30 strains of cannabis and owns a number of proprietary brands in traditional and innovative cannabis categories including Kaya Buddies™ pre-rolls, Really Happy Glass™ cannabis accessories, and Kaya Gear™, company related and cannabis centric fashion. These brands are currently available at Kaya Shack™ stores.
 
 
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The Company has made advances in the development of its Kumba Extracts™, Syzygy Extracts™, Pakalolo Juice Company™ Soothe Topicals™, Tony Giggles Pleasure Foods™ (frozen infused Italian entrees), Uptown Shaman™ (cannaceuticals), and Kaya Yums™ (chocolates, gummies, power bars) brands. and Kaya Yums™ brands of extracts, oils, vape cartridges, beverages and a variety of edibles, respectively. Pending approval of our production and processing license, KAYS intends to begin a multi-state rollout planned in 2020 to the extent permitted by U.S. legal infrastructure. These brands are intended for all Kaya Shack™ stores, both corporate owned and franchised.
 
 
Kaya Brands International, Inc.-
Foreign Cannabis Operations
 
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Greece, along with its neighbor Israel are positioned to become
the Silicon Valley for Medical Cannabis
 
 
After over six years of conducting "touch the plant" U.S. cannabis operations inside the strict regulatory confines of a public company, KAYS has formed a subsidiary, Kaya Brands International, Inc. ("KBI") to leverage its experience and expand into worldwide cannabis markets. KBI's current operations and initiatives include:
 
 
Kaya Kannabis- Kaya Farms™ Greece S.A. ("Kaya Farms Greece", a Greek Corporation) is a majority owned subsidiary of KBI. On January 13, 2021 the Company exercised its option to acquire a 50% Interest in the Athens, Greece based Greekkannabis, SA (“GKC”).
 
 
KBI acquired a 25% interest in GKC through a share transfer agreement with existing shareholders of GKC, which was consummated at close of business on Monday, January 11, 2021.  The remaining 25% interest is in process of being issued to KBI for a minor amount of paid in capital in recognition of KAYS and KBI’s contributions to the project. The acquisition of the 50% interest in GKC is the cornerstone of KAYS’ planned Kaya Kannabis project, announced in late 2019 with the objective of establishing a beachhead to enter the lucrative global medical cannabis market from Greece, a member of the European Union.
 
GKC is an Athens, Greece based cannabis company that has been granted a license for the construction of a facility encompassing approximately 225,000 square feet of cannabis cultivation and 80,000 square feet of cannabis processing on 15 acres of land in Thebes, Greece.
 
 
KAYS and KBI are represented in Greece by the Athens based law firm of Dalakos Fassolis Theofanopoulos (https://dftlaw.gr/). The firm has developed a long-established and well-respected commercial legal practice and has developed a wide international network of correspondent relationships with overseas law offices throughout the world.
 
 
Kaya Farms™ Israel- Kaya Shalvah LTD ("Kaya Farms Israel", an Israeli Corporation) is a majority owned subsidiary of KBI. Kaya Farms Israel is in the process of applying to various Israeli Government Agencies for a license to grow, process and export medical grade cannabis from Israel. Upon submission of the initial application to the Israeli Cannabis Authority, Kaya Shalvah intends to submit a bid to acquire 100 Dunams (approximately 25 acres) of land in Israel that is part of Greenegev, an Israeli Government backed Cannabinoid Ecosystem in Yerucham, Israel that is envisioned to become the Silicon Valley of Medical Cannabis Production and Research.
 
These two facilities, as currently envisioned (and after obtaining successful financing, completing construction and obtaining final requisite licensing), are configured to produce approximately 600,000 pounds of GMP Certified, Premium Medical Grade, Cannabis annually for potential export to the European Union and elsewhere.
 
Note: Envisioned Facilities for Greek and Israel are not yet constructed and for conceptual purposes only.
 
Canadian Franchising: KAYS has targeted Canada (the only G7 country that has legalized both medical and recreational cannabis production, sale and use on a national level) for its first international sale and operation of Kaya Shack™ cannabis store franchises, with a goal of 75-100 Kaya Shack™ Cannabis Retail locations throughout Canada through a multi-year structured rollout, subject to licensing and market conditions. KAYS has retained Toronto, Canada based law firm of Garfinkle Biderman, LLP to prepare the Franchise Disclosure Documents and related items for the sale of Kaya Shack™ cannabis store franchises in Canada. KAYS plans to ultimately expand its franchise operations to the U.S., as regulations and laws permit.
 
Important Disclosure: KAYS is planning execution of its stated business objectives in accordance with current understanding of state and local laws and federal enforcement policies and priorities as it relates to marijuana. Potential investors and shareholders are cautioned that KAYS and MJAI will obtain advice of counsel prior to actualizing any portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of marijuana products, engaging in said activities or acquiring existing cannabis production/sales operations). Advice of counsel with regard to specific activities of KAYS, federal, state or local legal action or changes in federal government policy and/or state and local laws may adversely affect business operations and shareholder value.