Cannabis
Company Kaya
Holdings, Inc. (OTCQB:
KAYS)
Completes
Purchase
of
Eugene,
Oregon Based Marijuana
Grow and Manufacturing Facility in
$1.55MM Deal to
Feed
Kaya
Shack Supply Chain
KAYS
to develop medical grade laboratory facilities for the production
of a proprietary Kaya Cannaceuticals
.
Portland,
Oregon -- October
23,
2018 --
InvestorsHub NewsWire -- Kaya Holdings, Inc. (OTCQB:
KAYS)
announced today that it has
concluded
the purchase
of the
Eugene,
Oregon based
Sunstone Farms manufacturing
facility, which is licensed by the OLCC
(Oregon
Liquor Control Commission) for
both the production
(growing)
of
medical
and recreational
marijuana
flower
and
the
processing
of
cannabis
concentrates/extracts/edibles.
The
purchase includes a
12,000
square foot building housing
an indoor
grow
facility, as well as equipment
for growing
and extraction
activity. The
facility can
produce
in
excess of 800
pounds cannabis
flower annually as
currently outfitted.
As
part of planned expansion and renovations for the facility,
KAYS
(www.kayaholdings.com)
has
begun site
improvements
and is ramping
up
production to
feed their
four
existing
OLCC
licensed cannabis
retail
stores which
currently
service
the legal medical and recreational marijuana market in
Oregon under
the Kaya
Shack brand
(www.kayashack.com).
KAYS
intends
to
utilize the processing facilities to grow
their own top-shelf, connoisseur-grade marijuana flower,
produce
various
brands
of oils,
edibles,
concentrates
and extracts,
and
develop
medical grade laboratory facilities for the production of a
proprietary Kaya
Cannaceuticals
line
of both
CBD and CBD/THC products
for
the
health,
skincare and
medical industries.
Pursuant
to an interim Management Agreement entered into between the
parties, the Company
has assumed operations of
the
12,000-square
foot
facility pending
transfer of the licenses by the OLCC to Kaya
Farms,
upon completion
of a
satisfactory compliance review.
Terms of Purchase
The
purchase price of $1.3 million for
the OLCC licensed marijuana production and processing
facility,
consisting
of the
building and
equipment was
paid for by the issuance of 12 million shares of KAYS restricted
stock to the
seller at closing. The shares
carry
a lock-up-restriction
that allows for their staged
eligibility
for resale
over a 61-month
period from
the date of the purchase of the facility by KAYS.
Additionally,
the seller purchased 2.5 million restricted shares for $250,000 in
cash in a
private transaction with the Company.
The
funds are earmarked for capital improvements to the facility
to
increase both production capacity and improve efficiency
"This
transaction
will
allow us to implement our vertical integration strategy so that we
can increase
both the quality and selection
of
marijuana flower and processed cannabis products
we offer at our Kaya Shack stores,
as
well as lower our costs of goods and
pass the savings on to our customers",
stated Craig Frank, CEO of KAYS. "Also,
the success of the acquisition model - allowing us to leverage the
value of our stock encourages us to invite other cannabis companies
to join under the Kaya banner and benefit from our greater value
and competitive position while
being able to access some of the equity that they have built in
this emerging growth industry."
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. Since
that time KAYS
has
expanded and 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,
in
late 2017 KAYS
recently acquired a 26-acre parcel in
Lebanon, Oregon which
it has targeted for development of the Kaya Farms Marijuana Grow
Complex, and
as reported above
has
completed the recent purchase of the Eugene, Oregon based Sunstone
Farm Facility which
holds OLCC (Oregon Liquor Control Commission) Licenses for both the
production (growing) and processing of medical and recreational
marijuana flower and cannabis
concentrates/extracts/edibles.
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