Las Vegas, NV, April 04, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- MJ Holdings, Inc. (OTCQB: MJNE; (“MJNE” or “Company”), a leader in the Nevada cannabis market, has entered into a definitive agreement to acquire a Nye County cultivation and production license for cash and stock valued at $2,500,000.00. The purchase is scheduled to close by June 30th of this year. As previously announced, MJNE recently purchased 260 acres of farmland with 180-acre feet of water rights in the Amargosa Valley of Nevada to expand its cultivation capabilities. Upon closing of the purchase of the cultivation and production licenses, the Company will immediately become the largest marijuana grower in the state.
In December of last year, MJNE harvested almost six thousand pounds of marijuana, the first and largest outdoor crop in Nevada history. Pursuant to the terms of the Company’s contract with Acres Cultivation, upon whose land MJNE produced this initial crop, MJNE is entitled to receive 85% of the gross revenues received from the sale of marijuana grown at their facility. The Company has sold about a third of its inventory and expects a small operating profit for the first quarter. The cultivation license that the Company is buying is pre-approved to grow up to 460,000 sq. ft. of marijuana and, when combined with MJNE’s current 120,000+ sq. ft. under canopy at the Acres facility, will make MJNE by far the largest grower of marijuana in the state of Nevada.
MJNE CEO and Acres Cultivation founding member Paris Balaouras stated, “With the success of our initial grow in 2018, we knew we needed to expand our grow capabilities; thus, the acquisition of our own land, cultivation and production licenses in Nye County was the shortest path to achieving our goals.” Balaouras added: “With this transaction we will have acquired more than $7,000,000 of real estate and intellectual properties since November 2018 as part of our plan to accelerate our various growth initiatives.”
The Company also owns a fully-perfected, City of Las Vegas Marijuana Cultivation License located in a 17,000+ sq. ft. multi-use building on Western Avenue adjacent to the Acres Dispensary in Las Vegas. While concentrating its primary focus on its Amargosa Valley cultivation and production facilities, the Company is maximizing the value of the Western facility with its state-of-the-art genetics lab where it will develop new marijuana strains and hybrids.
About MJ Holdings, Inc.
MJ Holdings Inc. (OTCQB: MJNE) is a diversified, publicly-traded holding company providing cultivation, production management and infrastructure development management and consulting services to the regulated, cannabis industry. . Our management operations include a three-acre, outdoor marijuana cultivation facility in the Amargosa Valley of Nevada, as well as a fully-licensed, indoor agritourism facility located in the city of Las Vegas known as the Highland Show-Grow. We also are 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.