Cannabis Strategic Ventures Harvests First Cannabis Crop and provides an update on Strategic Investment Partner
LOS ANGELES, CA -- August 15, 2019 -- InvestorsHub NewsWire -- Los Angeles-based Cannabis Strategic Ventures Inc. (OTC: NUGS) today announced the first cannabis harvest from its Northern California NUGS Farm North cultivation facility. Funding for the harvest and the NUGS Farm North operation was made possible through an $8,000,000 investment from LW Ventures, Inc, a financial partner with significant cannabis cultivation expertise. The operation has quickly positioned Cannabis Strategic Ventures as one of the largest greenhouse based mixed lighting cultivators in California.
Following the inaugural harvest, Cannabis Strategic Ventures expects continuous weekly harvests through October with new winter crops planted immediately thereafter. While the Company is not yet prepared to offer formal guidance as to the weight of the current and follow on harvests, Cannabis Strategic Ventures expects to measure the harvest in the thousands of pounds.
"We are extremely optimistic and excited about NUGS Farm North and the LW Ventures partnership. The opportunity came at a time when the CBD and Cannabis landscape in California was changing rapidly," said Simon Yu, CEO, Cannabis Strategic Ventures. "The synergy between Cannabis Strategic Ventures and LW Ventures, and our joint development of NUGS Farm North has led to a full realignment of our existing business strategy. In a matter of months, our Company is now positioned to be one of the largest greenhouse mixed-light cannabis cultivation in the state of California. We are also announcing today that we are nearing the completion of the terms and conditions for our material definitive investment agreement with LW Ventures. Once finalized, the LW Ventures investment will include millions of dollars in capital and an injection of significant assets to complement our already growing cannabis portfolio."
Under terms of strategic investment agreement with LW Ventures, Inc., LW committed to $8 million in funding for NUGS Farm North operations, a team of operators to scale the six-acre farm, rights to a Downtown Los Angeles cultivation, manufacturing and retail operation and a commitment to raise additional capital, as needed. In exchange, the Company committed to issuing LW Ventures restricted preferred shares and a lesser amount of common shares as well as several board seats. The Company plans to completely disclose the strategic investment in press releases and regulatory filings, after the material definitive agreement is signed and closed, that will include accounting and financial guidance.
Yu added "The partnership with LW Ventures was a rare opportunity. Their strategic investment and capital injection have already returned strong results with our current harvest, and with the buildout of our NUGS Farm North facility. Without LW's investment and operational expertise in cultivation, we wouldn't have scaled as quickly. Having strategic partners that are committed to providing financial and operational support is rare, as more and more license holders are still searching for investors to build their extremely capital intensive projects or are struggling to scale their operations with inexperienced master growers."
About Cannabis Strategic Ventures
Cannabis Strategic Ventures, Inc. is a publicly traded state licensed cannabis cultivator in the California. The Los Angeles-based Firm incubates, develops and partners with category leaders in the cannabis sector. The Cannabis Strategic Ventures NUGS brand experience provides strategic operational and financial partnerships and a range of essential business services to emerging and existing cannabis brands. Cannabis Strategic Ventures is publicly traded on the U.S. Over the Counter Market with the stock symbol NUGS.
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