Marijuana Retailer and Producer Kaya Holdings, Inc.
(OTCQB:KAYS)
Hails
Passing of Oregon Senate Bill 582 Allowing
Oregon
Cannabis to be Transported Across State Lines
Governor Kate Brown Expected to Sign Bill
into Law,
Opening
Path
to Interstate
Cannabis
Commerce
for Kaya Farms™
Kaya Holdings to Initiate Capital Raising Effort Via Rule 506(c)
Offering to Capitalize KAYS for Expansion and Launch Kaya Brands
International
PORTLAND,
Oregon --
June 13, 2019 -- InvestorsHub NewsWire -- Kaya Holdings, Inc. (OTCQB:KAYS),
an integrated retailer and producer of legal medical and
recreational cannabis products, hailed today the passage by
the Oregon legislature of SB-582, permitting the export of cannabis
from Oregon to states and countries with which it creates mutually recognized
legal cannabis exchange agreements.
The Company calls on Governor
Brown to sign the bill, positioning Oregon to lead
the American cannabis industry. The bill allows for Governor
Brown to enter into Interstate Cannabis Agreements with other
states for
the licensed and regulated sale of cannabis between legal
markets.
The Bill will only go into effect if the
Federal Government allows such transfers either via federal statute
or a Department of Justice Memo or Policy
Directive. The bill has
gained national
attention as more and more states explore legalization
policies and seek ways to avoid the
need to create a completely
self-contained
production industry, regardless of economic or environmental
suitability.
"We originally
went to Oregon because it is known as the cannabis
basket of
America, producing the highest quality, largest yields and broadest
variety of innovative cannabis products the U.S. has to offer.
Oregon is the obvious choice to best serve the U.S. market,
especially if recreational use is legalized federally", commented
KAYS CEO Craig Frank. "In anticipation of the new opportunities
SB-582 and
the strength of national and international legalization
efforts for cannabis
may offer us, we
have completed our planning phases for rapid expansion of Kaya
Farms™ to produce up to 100,000
pounds of premium cannabis, Kaya Shack™ retail cannabis
locations through our
planned franchise model, and Kaya
owned brands of oils and concentrated,
edibles, topicals, and cannaceuticals. Once the U.S. finally
permits the legal sale and transfer of cannabis, Kaya Holdings will
be well positioned to grow rapidly throughout the U.S.".
Kaya Holdings to Initiate Capital Raising Effort Via
Rule
506(c)
Offering
to Capitalize KAYS
for Expansion and Launch Kaya Brands International
Kaya Holdings
is in the process of structuring
and preparing offering documentation for a private offering under
Rule 506(c) of Regulation D. The Company
may seek to raise
up to $15
million to
fund expansion of its domestic operations, as well as launching
franchise sales in Canada. The proceeds are expected to be
used for expansion and completion
of the Company's production
capabilities, the launch of Kaya brand
products,,
expansion
of the
Kaya Shack™ footprint,
supportof
a franchise
operating infrastructure, development of other foreign
opportunities,
and enhancing Kaya Holdings' traditional
role as an industry pacesetter.
We intend to
structure the capital raise
in a manner to limit dilution
to current investors, while allowing them to benefit from our
deployment of new capital to fund growth. While we have not
finalized the structure and terms of the offering, we anticipate
that that it will include both shares of KAYS stock as well as shares
in Kaya Brands International, the majority-owned subsidiary
we intend to form for our planned Canadian business operations,
with a view to it potentially being listed on the Canada Securities
Exchange (the "CSE").
"In Q-1 2019, Cannabis
and related issuers remained the most active sector for capital
raising on
the CSE, closing
on gross proceeds of approximately
$550
million through 81 individual
financings,"
stated
W. David Jones, KAYS Senior Advisor for Business Development,
Licensing and Financial Operations. "Given the intent by KAYS
to launch
its planned Canadian franchising operations
through a
majority-owned subsidiary, accessing the CSE
makes
sense as we believe that
it has
become
an
excellent source
of new institutional and retail
investment capital and liquidity
for
US-based OTC Cannabis
Stocks."
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. 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.
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 four 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.
Oregon has
"paused" the acceptance of new license applications, but the law
allows the existing licenses to be sold and/or moved from one
physical location to another. KAYS is presently evaluating how best
to utilize these assets to form a network that will not only
maximize our penetration of the Oregon Cannabis market but serve as
the backbone to grow our U.S. Operations across state lines through
the rollout of proprietary brands. KAYS has initiated paperwork
with the OLCC to temporarily close one of the three outlets
in
Salem (store #3 in North Salem) and hopes to move that license to
its Eugene, Oregon Sunstone Farms legal recreational and medical
marijuana production and processing facility where it would be
operated as a Kaya Farms Store™ which would allow it to also serve
as a delivery hub to service the City of Eugene.
Additionally,
the Company is exploring opportunities to expand its operations
beyond Oregon by replicating its Kaya Shack™ brand retail outlets
through franchising in other states where recreational cannabis use
is legal or expected to become legal in the near term, as well as
in Canada, where it is legal nationwide.
KAYS has
retained the Toronto, Canada based law firm of Garfinkle Biderman,
LLP 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