Liht Cannabis Corp. provides Washington LOI update, closes purchase of 13.8 acres Lynden, Washington property
- The Company has secured a bridge financing loan to complete purchase of 13.8 acres in Lynden, Washington.
- Liht is actively working together with Canabiz Systems Inc. that has developed low-cost, high quality cannabis producing biospherical systems to finalize definitive agreements.
- Canabiz Systems Inc. will finance and implement equipment and leasehold improvements of 28,000 ft2 facility, providing Tier 3 license holder and tenant Alphapheno, LLC a turn-key cannabis cultivation operation
KELOWNA, BC, March 19, 2019 /PRNewswire/ - Liht Cannabis Corp. (CSE: LIHT) (OTCQX: LIHTF) ("Liht") or the "Company") announced today that the Company has secured a one-year 15% $1.9M USD bridge financing loan maturing April 1, 2020. The loan proceeds were used to purchase 13.8 acres of land with a 28,000 ft2 facility and additional buildings located in Lynden, Washington for $4.2M USD.
The terms of the financing are monthly blended principal and interest payments of $52,878 USD due on the 1st of the month starting May 1st, 2019. If the principal outstanding is not paid in full on April 1, 2020, the loan can be extended for 6 months for a 2% extension fee on the face value of principal extended in closing of the transaction, the Company paid lending and broker fees of $78,000 USD.
As previously disclosed on January 2, 2019, Liht is actively negotiating the definitive agreements in an arm's length transaction with Canabiz Systems Inc ("Canabiz"). Canabiz has the rights to a biospherical system providing cannabis cultivators with a low-cost operating model while maximizing cultivation canopy through vertical-stacking. The ownership of title on the property is integral in finalizing the definitive agreements.
Canabiz Systems Inc. will pay for the equipment and tenant improvements required for Alphapheno, LLC ("Tenant"), a Tier 3 license holder with unlimited processing ability. This means the Tenant is able to buy cannabis supply from the Washington market and process it into a variety of products that include but are not limited to extracts/oils, edibles and pre-rolled cannabis products. Upon signing of the definitive agreements, it is estimated the 28,000 ft2 facility will be scheduled for estimated completion in approximately 3-6 months subject to regulatory approvals.
Alphapheno, LLC, Kurt Keating states, "We have an unparalleled opportunity to be profitable in a mature cannabis marketplace while leveraging new technology. A turn-key facility utilizing a vertical growing methodology and an advanced aeroponic control system will allow us to maximize our production floorspace and implement automation not yet seen in our industry. Alphapheno will be positioned for sustainable revenue with this opportunity."
The Company intends to secure a long-term financing solution at a lower interest rate to improve net cash flows generated from the property.
ABOUT LIHT CANNABIS CORP.
Liht Cannabis Corp. is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Liht has rapidly expanded to include cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.
Liht trades in Canada, ticker symbol LIHT on the CSE, in the United States, ticker symbol LIHTF on the OTCQX.
Neither the CSE nor its Regulation Services Provider, nor the OTCQX® has approved nor disapproved the contents of this press release. Neither the CSE nor the OTCQX® accepts responsibility for the adequacy or accuracy of this release.
MARIJUANA INDUSTRY INVOLVEMENT:
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.
Liht owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Liht's ability to access private and public capital could be affected and or could not be available to support continuing operations.
Liht's business is conducted in a manner consistent with state law and is in compliance with licensing requirements.
Copies of licenses are posted on Liht's website. Liht has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.
FORWARD - LOOKING STATEMENTS:
Certain statements in this release are forward-looking statements, which includes, the expected outcomes of its business, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, present and future business strategies, the environment in which the Company will operate in the future, and other factors, many of which are beyond the control of the Company. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: that laws and regulations may become more onerous; the ability of the Company to obtain necessary financing; the economy generally; the future growth, results of operations, performance and business prospectus and opportunities; changes in and the effect of government policies; demand for products; competition; anticipated and unanticipated costs; reliance on management; claims and legal proceedings; conflicts of interest; and market price and volatility of the Common Shares. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, technology failures, failure to obtain a license from Health Canada or from other government agencies, failure to develop new and innovative products, failure of counterparties to perform their contractual obligations and fees charged by service providers. Important factors that could cause actual results to differ materially from the Company's expectations include, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, competition, and failure of counterparties to perform their contractual obligations. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. The Canadian Securities Exchange has not reviewed, nor approved the contents of this news release.
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SOURCE Liht Cannabis Corporation