|ECGI Holdings Closes on Definitive Agreement to Acquire California Property for Cannabis Cultivation and Manufacturing|
LOS ANGELES, Jan. 26, 2021 (GLOBE NEWSWIRE) -- via InvestorWire - ECGI Holdings, Inc. ("ECGI" or the "Company") (OTC PINK: ECGI) today takes its first steps toward the development of its special cannabis acquisition model via the closing of 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.
About ECGI Holdings, Inc.
ECGI Holdings, Inc., which plans to operate as Elite Cannabis Group, is reorganizing as an acquisition-oriented corporation with California-based targets of distressed cannabis assets, properties zoned for cannabis cultivation and processing, and cannabis companies operating in market sectors with national expansion possibilities. Additional information on the Company can be gained by contacting firstname.lastname@example.org.
This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to, economic conditions, changes in the laws or regulations, demand for products and services of the Company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
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|1/26/2021 9:30:00 AM