Marijuana Retailer and Producer Kaya Holdings, Inc.
(OTCQB:KAYS)
2nd
Quarter 2019
10-Q
Details
Lower Costs,
the
2019 Summer
Kaya Farms™ Cannabis Crop Report,
Advances in Brand Development and
the
Kaya Shack™ Retail Cannabis Store
Franchise
Program in Canada
FORT
LAUDERDALE, FL -- August 20, 2019 -- InvestorsHub NewsWire -- Kaya
Holdings, Inc. (OTCQB:KAYS),
an integrated retailer and producer of legal medical and
recreational cannabis, today announced that it had filed its
Quarterly Report on Form 10-Q for the quarter ended
June
30, 2019
with the Securities and Exchange Commission after the close of
market yesterday afternoon.
The
Form 10-Q contains financial results for the three
and
six month periods
ending
June
30,
2019, the
Kaya
Farms™ 2019
Summer Harvest Crop
Reports,
details regarding
the recently
signed agreement with the Franchise Academy regarding
the
Kaya
Shack™ Retail Cannabis Store
Franchise Program targeting
75-100
Kaya Shack™ retail cannabis stores in Canada by 2024
and the development and rollout schedule of
a total of eight
Next Stage Traditional and Innovative Kaya
Brands currently under development.
Financial
Results for the
six
months
ended June 30, 2019 versus the
six
months ended June 30, 2018. Revenues
stayed roughly the same ($512,000 for the six months ending June
30, 2019 versus $546,000 for the same period in 2018) but
our Operating
Expenses decreased to $912,000 from $1,932 ,000 and our Operating
Loss decreased to $637,000 from $1,607,000 for the same periods
(approximately a 53% reduction in operating expenses and a 60%
reduction in operating losses for the six months ending June 30,
2019 versus $546,000 for the same period in 2018.
Additionally,
our Interest expense and debt amortization expense decreased to
$972,181 for the six months ended June 30, 2019 from $1,407,930 for
the six months ended June 30, 2018 due to lesser debt incurred over
the past 12 months. Please
read our 10-Q and Management Discussion and Analysis
Kaya Farms 2019 Summer Harvest Kaya Farms™ Cannabis Test
Results.
The
2019 Summer Kaya Farms™ crop at Kaya Farms yielded eight strains of
which seven (7) strains posting test results of total cannabinoid
content in excess of twenty (20) percent. Top performers (ranked by
total cannabinoid content) include:
-
Rude
Boi
at
19.37%
-
Chem
91 at 20.67%
-
Zurple
Punch
at 21.21%
-
Sour
OG at 22.05%
-
Cherry
Chem at 22.2%
-
Citrus
Sap at 23.15%
-
Nigerian
Silver at 24.9%,
-
Unicorn Delight at 26.45%.
Kaya Shack™ Retail Cannabis Store Franchise Program in Canada. On
July 30, 2019 KAYS announced
that it had signed an agreement with The Franchise Academy, a
leading Canadian franchise development and sales group recognized
for its work with top U.S. and international franchise systems to
establish and implement the Kaya Shack™ Retail Cannabis Store
Franchise Program in Canada to target
75-100 Kaya Shack™ retail cannabis stores in Canada by 2024,
subject to regulatory approval and market acceptance.
The
Franchise Academy (http://www.franchiseacademy.ca) and
its founder Shawn Saraga
have
over 15 years of industry experience and have successfully closed
over 700 franchise agreements and leases across Canada.
Kaya™ Brand & Product Development. We
continue to progress with the development of the Kaya Shack family
of Brands which
include 5
operational
brands (Kaya
Shack, Kaya Farms, Kaya Buddies,
Kaya
Gear and
Really Happy Glass),
as
well as 4 Next Stage Traditional brands (Kumba Extracts,
Syzygy
Extracts, Kaya Yums and Soothe Tropical) and 4 Next
Stage Innovative brands (Pakalolo Juice Company, Uptown Shaman,
Tony Giggles Pleasure
Foods
and Kind Catering). Upon
successful completion of financing and licensing, KAYS intends to
begin bringing the new products to market in 2019, with a
multi-state rollout planned in 2020 to the extent permitted by U.S.
legal infrastructure. Each
of these brands have been sourced and branded and await approval of
the OLCC license for production to commence.
"I
believe we have successfully met our objectives for the first six
months of 2019, as we reduced our operating costs in Oregon while
preparing ourselves to solidify our position through building out
our two cultivation sites, launching our proprietary brands, and
preparing to expand the Kaya brands beyond Oregon and into
Canada"
commented Kaya CEO Craig Frank.
"As
we prepare to selectively access capital, we have positioned the
Company to maximize its deployment of resources for value
creation.
We thank our shareholders for their continued support as we prepare
to enter this exciting new phase
of our development".
Note:
Please visit our website (www.kayaholdings.com)
to
view
the
Kaya
Farms™ 2019
Summer Cannabis Crop Reports, obtain
information
on the development of the new Kaya Shack brands and
access updates on the Canadian Franchising Developments currently
in progress with the assistance of the Franchise Academy
(www.franchiseacademy.ca).
The
10-Q
report may be accessed at
www.sec.gov or by
logging onto our website
www.kayaholdings.com where
we have the entire library of KAYS SEC Filings
available.
About Kaya Holdings, Inc. (www.kayaholdings.com)
and the Kaya
Shack™ brand (www.kayashack.com)
of licensed medical and recreational marijuana stores:
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 has expanded and presently
operates three Kaya Shack™ OLCC licensed marijuana retail stores to
service the legal medical and recreational marijuana market in
Oregon (www.kayashack.com),
has developed its own proprietary Kaya Farms™
strains of cannabis, which it grows and produces (together with
edibles and other cannabis derivatives) at its Eugene, Oregon
Sunstone Farms legal recreational and medical marijuana production
and processing manufacturing facility, which it acquired in October
2018 and is operating pursuant to a management agreement pending
OLCC approval to reissue the license to MJAI Oregon 1, LLC (KAYS'
main Oregon Operating Subsidiary).
The
Company also owns a 26-acre parcel in Lebanon, Linn County, Oregon,
which it purchased in August 2017 on which it intends to construct
a cultivation and production facility. We filed for zoning and land
use approval in early 2018, and after numerous regulatory
challenges and delays, we finally received zoning and land use
approval in January,2019 to build an 85,000-square foot Kaya Farms™
greenhouse grow and production facility. Kaya Farms has begun
designing the facility for maximum production of approximately
100,000 pounds annually, should recent efforts by Oregon state
officials to enable export, or Federal decriminalization permit
Oregon cannabis farms to maximize capacity.
The
Company maintains a genetics library of over 30 strains of cannabis
it has developed and has also formulated various edibles, cannabis
derivatives and marijuana cigarettes under the "Kaya" brand
name.
Kaya Holdings Conference Call Update. The
Kaya Holdings Annual Shareholder Call, originally slated for late
December 2018/ early January 2019 was postponed due to pending
developments with our International division and opportunities in
Canada. We apologize for the delay and anticipate
announcing
a firm
date soon.
Interested
parties are advised to go to www.kayashack.com and
register for KAYS updates; a confirmation email and participation
code will be sent out to all shareholders and interested parties as
soon as the date is set.
Kaya™ Brand and Product Development. The
Company
has made advances in the development of its 4 Next
Stage Traditional brands (Kumba
Extracts,
Szygy
Extracts,
Kaya Yums
and
Soothe Tropical) and 4 Next Stage Innovative brands (Pakalolo Juice
Company, Uptown Shaman, Tony Giggles Pleaseure
Foods
and Kind Catering). The
brands join the Company's Kaya
Shack family of Brands which
include 5
operational
brands (Kaya
Shack, Kaya Farms, Kaya Buddies,
Kaya
Gear and
Really Happy Glass).
Upon
successful completion of financing and licensing, KAYS intends to
begin bringing the new products to market in late 2019, with a
multi-state rollout planned in 2020 to the extent permitted by U.S.
legal infrastructure.
Franchising. KAYS
has retained the Toronto, Canada based law firm of Garfinkle
Biderman to prepare the Franchise Disclosure Documents ("FDD") and
related items for the sale of Kaya Shack™ Cannabis Store franchises
in Canada, which is the only G7 country that has legalized both
medical and recreational cannabis production, sale and use on a
national level. KAYS is near completion of negotiations with a
leading franchise and real estate brokerage firm to lead the
initial effort, which will most likely begin in the Province of
British Columbia, and advance to other Provinces as license
allocations are developed by the Canadian authorities. We expect
the franchise sale and placement effort throughout Canada to
progress over the next 3-18 months. 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 (as outlined in the Justice Department's U.S. Attorney
General Jeff Sessions Memo dated January 4, 2018, and subsequent
commentary from the U.S. Attorney for the District of Oregon Billy
Williams), and plans 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, 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