US (CA): MOU signed for the acquisition of a Sacramento-based indoor cultivation

Cannabis Strategic Ventures has signed a Memorandum of Understanding with Devine Solutions for the acquisition of an indoor cannabis cultivation facility in Sacramento, CA.

According to the terms of the MOU, the Company intends to purchase 10% of the Facility at a valuation of $15 million for the entire Facility, with an option to purchase an additional 41% of the Facility (which would comprise a controlling 51% stake) at this same valuation.

The Facility is approximately 15,600 square feet and has the potential to house an estimated 500 grow lights. It is projected to produce 2-3 lbs. of premium exotic cannabis flower per light per harvest across an estimated 5.75 harvests per year, suggesting an upside potential of over 7,000 lbs. of premium cannabis flower per year.

Simon Yu, CEO of NUGS, commented, “This deal represents the potential to sharply increase our premium cannabis production capacity and materially augment our status as an emerging leader in the vertically integrated California cannabis marketplace. We have already amassed years of experience refining our cultivation methods and strains in an outdoor framework with our NUGS Farm North site. Adding a top-tier indoor cultivation operation stands to help us further build upon that success and drive more volume in the premium flower market, which has powerful implications given our recent expansion into the dispensary marketplace with our MDRN Tree downtown LA dispensary location. The combination grants NUGS expanding operations at both ends of the farm-to-sale model.”