US (CA): Definitive agreement closed to acquire NorCal-based property for cultivation and manufacturing

ECGI Holdings has closed a definitive agreement to acquire a privately held farm, which includes a 1.7 million-square-foot Northern California property zoned for cannabis cultivation, processing and manufacturing. The Company plans to initially utilize the site to cultivate premium cannabis strains while developing facilities onsite and a business model for regulated cannabis processing and manufacturing. The zoning of the site will support numerous cannabis business operations when licenses are issued.

The definitive agreement is the first of several planned acquisitions of cannabis-zoned real properties and related cannabis businesses. ECGI Holdings, Inc. intends to operate the new facility through a new management team possessing considerable cannabis and hemp industry expertise. The Company plans to announce this team over the coming weeks. 

“We are seeing there are numerous cannabis and hemp-related properties and businesses seeking to partner with companies that can apply financing and managerial expertise,” commented Company CEO William Chung. “ECGI is particularly interested in applying our team’s considerable expertise in cannabis and hemp extraction and in the manufacturing of ultra-high-quality concentrates as these market segments rapidly expand. We are currently performing due diligence on several other real properties and other assets in these related areas to add to a portfolio of investments.”

Under the terms of the definitive agreement, which closed on Jan. 20, 2021, the Company will pay the seller of the property $3,500,000 in cash and $500,000 of restricted ECGI common shares in exchange for the property and all future cannabis licenses to be issued. The Company will acquire 100% of the farm and assume all mortgage on the property.

ECGI’s investments were recently reorganized, targeting a special cannabis acquisition model to emphasize cannabis cultivation, manufacturing and non-storefront retail distribution. With a change in control of both the White House and the U.S. Senate, the Company believes the national de-scheduling of cannabis will begin later in 2021, thus creating significant opportunities for the industry’s market participants, especially those with business operations and experience that can be leveraged across a national geography. The Company plans to take this nationalization view into consideration when selecting cannabis business acquisition targets.

ECGI also recently announced its intention to change its corporate identity to Elite Cannabis Group, Inc. The Company plans to retain its Nevada corporate business registration but will physically operate out of new offices in the Los Angeles, California, area. The Company is led by a team of highly experienced entrepreneurs with backgrounds in finance, law, cannabis cultivation and other specific areas of the cannabis and hemp industries.