Weekend has sold its facility and equipment in Wenatchee, Washington. "The transaction was for a total of USD$400,000, with USD$300,000 paid at the completion of the property transfer and the remaining USD$100,000 distributed over 12 consecutive monthly payments commencing in January of 2021," the team with the company explains.
Weekend purchased this facility in 2018 and from that date it has not served in any active operations for the company. The purchasers will rent the facility to licensed cannabis producers who will formulate Weekend Unlimited Products once the transfer application has been approved to this new address.
“The sale of our Washington facility comes at the right time when this capital can be used to further develop our growing operations in Oklahoma,” said Chris Backus, President and CEO. “The deal we’ve made still allows WKND! brands to have a footprint in Washington. We believe this is the best decision to continue to grow Weekend as a revenue generating company for our investors.”
Reallocation of Capital from Northern Lights Organics to Oklahoma
Weekend’s Executives and Board of Directors have unanimously decided to redirect the 2020 operational budget from Northern Lights Organics to our revenue generating Oklahoma operations.
With a recent surge of biomass production and decrease in biomass price in the Canadian hemp industry, Weekend determined the risk of further pursuing Northern Lights Organics operations this year was not in the best interest of the company and its investors.
The business model to plant, harvest, dry, and transport hemp from 40 acres was projected to exceed Cdn$350,000 while wholesale cost of distillate has significantly decreased as volume floods the market making Weekend’s profitability uncertain.
Additionally, the operational plans to dry harvested biomass called for several employees to work in small enclosed greenhouses with industrial sized dryers circulating air which would be contrary to safe and recommended COVID-19 prevention measures.
“Weekend’s management team strongly believe this is the most strategic decision we could make at this time.” stated Chris Backus, President and CEO. “WKND! And Orchard Heights Cannabis brands are growing dramatically in Oklahoma and we believe our efforts and capital are best allocated to a proven business model that is earning Weekend growing and consistent profits. This decision is a strong positive for the company and we are very excited and optimistic about our growing footprint in Oklahoma.”
“Strengthening our cash position, and re-allocating capital to Oklahoma, could not come at a better time given our recently announced letter of intent with Ruby Maes,” said CEO, Chris Backus. “We are simply making a methodical decision to move cash from a crop commodity asset with several uncertain factors, and place it into Oklahoma operations which is proven by its month-over-month revenue growth to have less risk and more upside”.