|ECGI Holdings Creates Nug Avenue Subsidiary - Announces Definitive Agreement for Cannabis Delivery Services in Thriving Los Angeles Marketplace|
LOS ANGELES, Feb. 09, 2021 (GLOBE NEWSWIRE) -- via InvestorWire - ECGI Holdings, Inc. ("ECGI" or the "Company") (OTC PINK: ECGI), which plans to operate as Elite Cannabis Group and has been reorganized as an acquisition-oriented corporation with California-based targets of distressed cannabis assets, properties zoned for cannabis cultivation and processing, today announces its second agreement within the fast-growing California regulated cannabis market. The Company has signed a definitive management services agreement to enter the cannabis delivery business in conjunction with a California cannabis license holder operating out of Lynwood, California.
ECGI created a wholly owned subsidiary, Nug Avenue, Inc., a California Corporation, which will hold the contract with the licensed party. The Company plans to enter into an additional agreement whereby it will sell up to 70% of the Nug Avenue unit to a third party, allowing the Company to retain and report an approximately 30% ownership.
"We are continuing to expand our investments within the California cannabis market," commented William Chung, CEO of ECGI. "Last month, we announced the acquisition of prime Northern California real estate that is zoned for cannabis cultivation with this new invesment opportunitiy targeting the even faster-growing area of cannabis delivery. We plan on announcing our additional partnerships relating to this new agreement over the coming weeks, if not sooner. We are in the process of vetting additional similar transactions as part of our strategy to acquire distressed assets and other cannabis-related businesses with long term and hyper-growth potential."
According to multiple industry watchers and California cannabis regulators, the California market continues to grow rapidly. Much of this growth is driven by the delivery market, which is especially strong in the Los Angeles Metro area.
Mr. Chung added, "We expect the growth trends within the Los Angeles market to continue and we are positioning our investment direction appropriately. We plan to provide our investors with additional details on this transaction, our plans for the business operation of the delivery business, and concerning other possible cannabis-related investments over the coming days and weeks."
About ECGI Holdings, Inc.
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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|2/9/2021 9:30:00 AM