Cannabis
Company Kaya Holdings, Inc. Executes
MOU to
Acquire 50% of
Athens Based Greekkannabis PC
as First
Move Into Global
Cannabis
Markets
FORT LAUDERDALE,
FL
-- November 4, 2019 -- InvestorsHub NewsWire
-- Kaya Holdings, Inc.
(OTCQB:
KAYS), through its
majority owned subsidiary, Kaya Brands
International, Inc. ("KBI"),
announced
today that it had executed a
memorandum of
understanding ("MOU") setting forth the terms for KBI's acquisition
of a 50%
ownership
interest in Greekkannabis,
PC
("GKC"). GKC is
an Athens,
Greece based
cannabis
company
which has
applied for and is awaiting
issuance
of a medical
cannabis
cultivation, processing
and
export license
from the
Greek government.
GKC
plans
to
establish its cannabis cultivation
and
processing facility on land already identified outside of
Athens, Greece. Project management
envisages 3 stages of development, each comprised of 125,000 square
feet of light-deprivation greenhouse cultivation. Each phase is
expected to produce 93,600 pounds of premium medical cannabis, for
an anticipated total project capacity of not less than 280,0000
pounds annually for distribution throughout Europe and other select
markets. Greece, as a European
Union nation, has easy access to the European market.
The MOU sets forth an
agreement in principle, pursuant to which in consideration for
KBI providing the necessary expertise
related
to cannabis cultivation, processing, brand development and other
matters, KBI will have the
right to acquire a 50% ownership
interest in GKC by reimbursing GKC for 50% of its license application
costs (with allowances for KBI's expenses as
well).
Consummation
of the transaction contemplated by the MOU is subject to, among
other customary conditions, satisfactory completion by KBI of
its due diligence
review of GKC, the drafting,
execution and delivery of definitive transaction documentation
and final
license approval and
issuance by the Greek
government.
To read a copy
of the
executed MOU between
GKC and KBI, please refer to the 8-K being filed.
"As the first U.S.
public company to own and operate legal cannabis stores
and farms we
acknowledge
that we slowed our pace of growth even
as
other
companies moved
rapidly," remarked
KAYS CEO Craig
Frank. "Our strategy
has
always
been to
gain operational experience in Oregon – one of the world's most
intense cannabis environments – and, once the
patterns of global cannabis regulations become
apparent, expand our operations
accordingly. We believe that time has come both for our
Kaya
Shack™ retail brand
through
franchising in Canada, and our Kaya
Farms™ cultivation
brand
through
farm extensions in Greece and elsewhere. Kaya
is
committed to leveraging its
unmatched operational experience and
compelling brands
to create
exciting opportunities in a still evolving industry".
KAYS and KBI are
represented in Greece
by the
Athens based law firm of Dalakos
Fassolis
Theofanopoulos (https://dftlaw.gr/).
KBI
is the subsidiary formed by KAYS
to serve as the corporate home for
KAYS
expansions abroad.
Note:
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please go to
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About
Kaya Holdings, Inc. and
Kaya Brands International
(www.kayaholdings.com)
Kaya
Holdings, Inc. ("KAYS") is a vertically integrated legal cannabis
enterprise that produces, distribute and/or sells premium medical
and recreational cannabis products, including flower, concentrates,
oils and extracts, cannabis-infused foods, topicals and
cannaceuticals. KAYS is a fully reporting, US-based publicly
traded company, listed for trading on the OTCQB Tier of the
over-the counter market under the symbol
OTCQB:KAYS.
Brands owned and
operated by the KAYS include the Kaya Shack™ brand of
licensed
medical and recreational marijuana stores (www.kayashack.com)
and the Kaya Farms™ brand
of cannabis production and processing operations. Other Kaya brands
in the extract, oils, edibles, topicals, accessory and
cannaceuticals categories are fully developed and pending
launch.
Kaya Brands International, Inc., is the subsidiary formed by KAYS
to serve as the corporate home for KAYS expansions
abroad.
U.S.
Cannabis Operations
Kaya
Shack™ Retail Cannabis Stores
In
2014, KAYS became the first United States publicly traded company
to own and operate a Medical Marijuana Dispensary. KAYS presently
operates three Kaya Shack™ OLCC licensed marijuana retail stores to
service the legal medical and recreational marijuana market in
Oregon.
Kaya
Farms™
Eugene,
Oregon Indoor Grow, Processing & Cannaceutical
Facility: KAYS
has
developed its own proprietary Kaya Farms™ strains of cannabis,
which it grows and produces (together
with edibles and other cannabis derivatives) at its 12,000 square
foot indoor grow and cannabis manufacturing facility in Eugene,
Oregon, capable of producing approximately 1,500 pounds of premium
cannabis annually, with the capacity for expansion.
The
Company also plans to use the space for production of oils,
concentrates, extracts, edibles, and cannaceuticals. KAYS is
currently conducting limited operations at the facility pending
approval transfer of the production and processing licenses to KAYS
by the Oregon Liquor Control
Commission (the "OLCC"),
the Oregon state regulating agency which regulates legal cannabis
production, processing and sale.
Lebanon,
Oregon Farm & Greenhouse Facility: KAYS owns a 26-acre
parcel in Lebanon, Linn County, Oregon which it intends to
construct a 85,000-square foot
Kaya Farms™ greenhouse cultivation and production facility. To date
KAYS has received Linn County Zoning approvals and upon issuance of
OLCC Licensing it will begin construction. The farm is intended for
immediate development and provides the Company with a potential
additional capacity of more than 100,000 pounds annually, to be
expanded once export from Oregon to other U.S. States and foreign
countries where cannabis use is legal is permitted. Kaya Farms™
operates in accordance with a Grow Operations manual, as well as
manuals for compliance, employment matters and safety.
Brand
and Product Development: The
Company maintains a genetics library of over 30 strains of cannabis
and has also formulated various edibles, cannabis
derivatives and marijuana
cigarettes under Kaya owned brand names. Pending approval of our
production and processing license, the Company has made advances in
the development of its Kumba Extracts™, Syzygy
Extracts™, Pakalolo Juice
Company™ and Kaya
Yums™ brands of extracts,
oils, vape cartridges, beverages and a variety of edibles,
respectively. The brands join the Company's Kaya Buddies™
pre-rolls, Kaya Gear™ t-shirts, and Really
Happy Glass™ accessories already
available at Kaya Shack™ stores. Upon successful completion
of
financing and licensing, KAYS intends to begin a multi-state
rollout planned in 2020 to the extent permitted by U.S. legal
infrastructure.
International
Cannabis Operations- Kaya Brands International
After over five years
of conducting "touch the plant" U.S. cannabis operations inside the
strict regulatory confines of a public company, KAYS has formed
Kaya Brands International, Inc. ("KBI"). to leverage its
experience and expand into worldwide cannabis
markets. KBI's current operations and
initiatives include:
Canadian
Franchising:
KAYS has
targeted Canada for its first international sale and operation of
Kaya Shack™ cannabis store franchises. KAYS has entered into
an area representation
agreement with The Franchise Academy
(a leading Canadian Franchise Development and Sales Group) to
implement the Kaya Shack™ Retail Cannabis Store
program in Canada (the only G7 country that has legalized both
medical and recreational cannabis production, sale and use on a
national level). The agreement targets 75-100 Kaya
Shack™ Cannabis Retail locations throughout
Canada through a multi-year structured rollout, subject to
licensing and market conditions.
The Franchise Academy
(http://www.franchiseacademy.ca)
and its founder Shawn Saraga, is a member and national sponsor of
the Canadian Franchise Association. With over 15 years of industry
experience and having successfully closed over 700 franchise
agreements and leases across Canada, the Franchise Academy has the
knowledge, expertise, network and dedication to assist select
franchisors enter the Canadian
market.
Additionally, KAYS
has retained Toronto, Canada based law firm of Garfinkle Biderman,
LLP to prepare the Franchise Disclosure Documents
and related items for the
sale of Kaya Shack™ cannabis store franchises in Canada. We expect
the franchise sale and placement effort throughout Canada to
progress over the next 3-24
months.
KAYS plans to ultimately expand its franchise operations to the
U.S., as regulations and laws permit.
Greece
KAYS has
entered into a
Memorandum of Understanding ("MOU")
setting
forth an agreement in principle for KBI to acquire
a
50%
ownership
interest in Greekkannabis, PC
("GKC").
GKC is a
recently formed Athens, Greece based cannabis company which has
applied for and is awaiting issuance of a medical
cannabis
cultivation, processing
and
export license
from the
Greek government.
The MOU sets forth an
agreement in principle, pursuant to which in consideration for KBI
providing the necessary expertise related to cannabis cultivation,
processing, brand development and other matters, KBI will have the
right to acquire a 50% ownership interest in GKC by reimbursing GKC
for 50% of its license application costs (with allowances for KBI's
expenses as well). Consummation of the transaction contemplated by
the MOU is subject to, among other customary
conditions,
satisfactory completion by KBI of
its due diligence review of GKC, the drafting, execution and
delivery of definitive transaction documentation and final
license
approval
and issuance by the Greek government.
GKC
plans
to
establish its
cannabis
cultivation
and
processing facility on land already identified outside of Athens.
Project management envisages 3 stages of development, each
comprised of 125,000 square feet of light-deprivation greenhouse
cultivation. Each phase is expected to produce 93,600 pounds of
premium medical cannabis, for an anticipated total project capacity
of not less than 280,0000 pounds annually for distribution
throughout Europe and other select
markets.
In consideration for
KBI providing the necessary expertise
related
to cannabis cultivation, processing, brand development and other
matters, GKC has extended an option to KBI to acquire a 50%
ownership interest in GKC by reimbursing GKC for 50% of the license
application costs (with allowances for KBI's expenses as well). The
agreement is subject to due diligence review by KBI and final
licensure by the Greek Authorities.
KAYS and KBI are
represented in Greece
by the
Athens based law firm of Dalakos Fassolis Theofanopoulos
(https://dftlaw.gr/).
The firm has developed a long-established and well-respected
commercial legal practice and has developed a wide international
network of correspondent relationships with overseas
law
offices throughout the
world.