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
Ft Lauderdale, FL --
August 21, 2018 -- InvestorsHub NewsWire -- Kaya Holdings, Inc.
(OTCQB: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.
"We continue to focus
on establishing and strengthening our core strategic goals; a
significant retail base for access to end customers, control of
production to control costs and selection, and strong, competitive
brands", stated Kaya Holdings CEO, Craig Frank. "We have taken the
steps necessary to accelerate our time to production and
will
continue to seek ways to lower costs while increasing
sales".
A copy of the
Company's Quarterly Report on Form 10-Q as filed with the SEC, is
available online at www.sec.gov
To see video
of the Kaya
Farms (Architect's Project
Rendition) please go to: https://www.dropbox.com/s/3po31ksdilcl9l9/Kaya_Farms%20Final.mp4?dl=0
To see video
of the Kaya Shack OLCC
Licensed Stores please go to: https://www.dropbox.com/s/49i5emi3wc0ha0d/Store%20Tour%20Final%20%28hi-res%29.mp4?dl=0
About Kaya
Holdings, Inc. (www.kayaholdings.com)
KAYS
(OTCQB:KAYS),
through subsidiaries, produces, distributes or sells legal premium
medical and recreational cannabis products, including flower,
concentrates and oils, and cannabis-infused foods.
In 2014,
KAYS, became the first publicly traded company to own and operate a
Medical Marijuana Dispensary. KAYS presently operates four Kaya
Shack OLCC licensed marijuana retail stores to service the legal
medical and recreational marijuana market in Oregon
(www.kayashack.com).
Additionally,
KAYS recently acquired a 26 acre
parcel
which it has targeted for development of the Kaya Farms Medical and
Recreational Marijuana Grow and Manufacturing Complex.
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 (as
outlined in the Justice Department's US Attorney General Jeff
Sessions Memo dated January 4, 2018, and subsequent commentary from
US Attorney for the District of Oregon Billy Williams), and plan to
proceed cautiously with respect to legal and
compliance issues. 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 and MJAI,
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.
Forward Looking
Statements
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe," "estimate," "project," "expect" or similar expressions.
These statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
acceptance of the Company's current and future products and
services in the marketplace, the ability of the Company to develop
effective new products and receive regulatory approvals of such
products, competitive factors, dependence upon third-party vendors,
and other risks detailed in the Company's periodic report filings
with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release.
For more information
contact Investor Relations: 561-210-7664
