MJ Holdings Shareholder Update
December 11 2018 - 10:12AM
InvestorsHub NewsWire
Las Vegas, NV -- December 11, 2018 -- InvestorsHub
NewsWire -- MJ Holdings, Inc. (OTCQB: MJNE) (the
“Company”), a leader in the Nevada cannabis market, updates
shareholders as their first year as a new company comes to a close.
Paris Balaouras CEO of MJ Holdings said this:
As we begin to close in on the anniversary of our first year in
business I want to share some insights, updates and my thankfulness
for all of your continuing support. As the saying goes “good things
come to those who wait.” When we completed our reverse merger last
December we knew that we had a lot of hard work and challenges
ahead of us. Our initial annual audit proved to be one of those
challenges. As a U.S. public company in the cannabis industry, our
audit firm conducted a thorough analysis of our company to insure
that completely accurate and transparent information would be made
available to our shareholders and the general public. This in-depth
review took almost seven months to complete and naturally caused
you, our valued shareholders, to have some concerns. I want to
thank you all for your patience while our annual audit and
subsequent quarterly reports were being prepared.
In April of this year we entered into an agreement with a
licensed operator to manage a three-acre plot at their cultivation
facility in the Amargosa Valley of Nevada and we petitioned the
State of Nevada to let us conduct a “test” grow of marijuana
utilizing a state-of-the-art high tech mesh system. We began
erecting the facility in March of this year and received approval
from the state in August to move more than 8,000 marijuana plants
onto the site. Utilizing the mesh system, first developed in Israel
to improve desert farming conditions, that filters out harmful UV
light, reduces heat and increases humidity, while protecting the
plants from insects and pests. We were able to achieve results that
rival indoor and greenhouse growing conditions but with
considerably higher yields and lower costs per plant. We began
harvesting the crop on November 30th and we will complete it in mid
December. We expect to cure about 3,500 lbs. of high quality, high
THC top flower and dry more than 4,000 lbs. of plant “trim” to be
extracted into THC/CBD distillate. Current wholesale pricing for
trim in Nevada is over $650 per pound and flower is wholesaling for
about $2,000 per pound. We expect to gross more than $10,000,000
from this harvest. We are proud of this achievement in light of
many obstacles and hurdles placed in our path by regulatory
agencies, Canadian cannabis industry headwinds, and turbulent US
political policies. Growing our product with our mesh system gives
us a significant competitive advantage as we are able to cultivate
marijuana for considerably less (50% - 75%) than in a greenhouse or
indoor facility. This test grow has established MJ Holdings as a
preeminent cultivator of high quality marijuana. We are in contract
to purchase additional acreage for our 2019 grow and we will be
scaling up by more than 3X next year. This unique style of growing,
which was led by our incredible grow team, Mike Kelley and Doug
Warren, will be a model that we will implement in future
cultivation projects with our partners in other states and
internationally.
While we had some structural and related issues at our indoor
cultivation facility, the Highland Show Grow that has caused
unexpected construction delays, we are happy to report that our
1600 sq. ft. Phase 1 section of the facility is ready to go online.
We will be utilizing this facility to produce high quality
marijuana seeds for our own use and to sell to other cultivators.
Producing our own seeds generates considerable cost savings,
further reducing our cost per pound to grow marijuana.
In November we launched our new brand of marijuana products,
Highland Brothers (www.highlandbrothers.com). Highland Brothers
embodies what we stand for: Honor, Vision and Drive, while being a
truly iconic Las Vegas brand. Launching with the newly patented
Q-cup quartz vaping system, Highland Brothers will feature
pre-rolls, edibles and other marijuana concentrate products for
distribution throughout the Nevada market.
In 2019 we will commence our industrial hemp operations to take
advantage of the continually growing demand for CBD isolate in the
U.S. CBD is found in numerous dietary supplements, beverages, pet
products, cosmetics and the list is growing almost daily. The
anti-inflammatory aspects of CBD and the other health benefits are
currently being investigated by numerous researchers and drug
companies and we feel the future for hemp and CBD is limitless. Our
grow team will plant 100 acres of hemp that should yield about
10,000 kilos of CBD isolate with a wholesale value in excess of
$40,000,000. Our belief in the future cultivation of hemp for the
production of high quality CBD distillate and isolate is so strong
that we are securing rights to cultivate up to an additional 2,000
acres in 2020.
As we continue to look forward to 2019 we are preparing to
expand both domestically and internationally, MJ International
Research Company, Ltd., a wholly owned subsidiary of MJ Holdings,
Inc., will be headquartered in Dublin, Ireland. We will launch our
entry into the European marketplace, initially cultivating 10 acres
of medical marijuana, utilizing our proven mesh system for
distribution in Greece and export to Germany, Poland and other EU
countries as the use of medical marijuana becomes legal. We have
formed a strategic partnership with an Oklahoma cultivation and
dispensary license holder to operate their grow and dispensary
facilities. We have formed Alternative Hospitality, Inc., to
operate a chain of cannabis lifestyle hotel properties. This
project is being done in partnership with a renowned U.S. hotel
operator and we are excited about the future of this opportunity,
and I look forward to sharing more about this unique business model
in the coming months.
I know many of you have been concerned about the recent
volatility of our stock price and we share your concerns. Our stock
price is subject to overall market conditions, particularly those
affecting cannabis stocks and there has been downward price
pressure in the sector of late. Other factors that influence our
stock price include the marketplace’s short-term ability to absorb
large blocks of our securities coming into the market due to either
registration of those securities or expiration of other holding
period restrictions. We believe the markets will react positively
to our quarterly earnings and our plans for growth in 2019. Most of
you have been with us since the beginning, our “Friends and Family”
and, on a personal level, your continuing support and belief in us
now and into the future is invaluable. We have taken initial steps
to get our stock listed on the Canadian Stock Exchange (“CSE”)
which may allow us to establish relationships with well known
Investment Banks that can support our continued growth.
In closing, I feel that our future is bright and that changing
attitudes toward cannabis use at both the local and federal levels
will insure our long-term success. As always, you, our
shareholders, are the ones who allow us to set our course for the
future and we appreciate you and want to again thank you for all
your support.
Wishing everyone a happy and healthy holiday season.
About MJ Holdings, Inc.
MJ Holdings Inc. (OTCQB:MJNE) is a diversified publicly traded
holding company providing management and consulting services to the
regulated cannabis industry. Through our subsidiaries we provide
cultivation and production management services and infrastructure
development. Our management operations include a three-acre outdoor
marijuana cultivation facility in the Amargosa Valley if Nevada, as
well as a fully licensed indoor agritourism facility located in the
city of Las Vegas known as the Highland Show-Grow. We are also
active in identifying and acquiring revenue producing assets and
licenses within legalized cannabis markets both nationally and
internationally.
Safe Harbor
The information provided in this press release may include
forward-looking statements relating to future events or the future
financial performance of the Company. Because such statements are
subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Words such as "anticipates," "plans," "expects,"
"intends," "will," "potential," "hope" and similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are based upon current expectations of
the Company and involve assumptions that may never materialize or
may prove to be incorrect. Actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of various risks and
uncertainties. Detailed information regarding factors that may
cause actual results to differ materially from the results
expressed or implied by statements in this press release relating
to the Company may be found in the Company's periodic filings with
the Securities and Exchange Commission, including the factors
described in the sections entitled "Risk Factors", copies of which
may be obtained from the SEC's website at www.sec.gov. The
parties do not undertake any obligation to update forward-looking
statements contained in this press release.
Contact:
Terrence Tierney-CAO
info@mjholdingsinc.com
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