LOS ANGELES– Cannabis Strategic Ventures (OTC:NUGS), an emerging U.S. cannabis company, announced it will deploy its newly acquired licenses, including the upcoming grand opening of the Company’s customer-facing cannabis dispensary brand, “MDRN Tree,” which will open its first Los Angeles location sometime this fall.
After the launch of MDRN Tree, the Company plans to deploy another of its new licenses for the establishment of an indoor cultivation facility with the capability of up to 1,200 grow lights, 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 for total production capacity of over 15,000 lbs. of premium exotic cannabis flower per year.
As discussed in its release dated September 23, the Company entered into a material definitive agreement in 2019 with LW Ventures, Inc. (“LW”) involving the assignment of NUGS equity to LW shareholders in exchange for up to $8 million in funding and the transfer of four cannabis licenses issued by the City of Los Angeles and the State of California for the Retail Sale, Cultivation, Distribution, and Manufacturing of cannabis products.
However, due to the Covid-19 pandemic, approval of the transfer of licenses was delayed until recently: On August 9, 2021, following prior approval by the State of California, the Company was notified that the City of Los Angeles approved the change of ownership applications resulting in final regulatory approval to transfer all four licenses to NUGS.
“After securing key licensing, we are wasting no time in deploying those assets to launch one of California’s top vertical cannabis models,” noted Simon Yu, CEO of NUGS. “MDRN Tree will be our factory retail store – our direct interface with our end-market community – where we plan on showcasing the cannabis flower produced at our NUGS Farm North cultivation site. This farm-to-sale model offers the potential to drive simultaneous gains in quality control and profitability, and I look forward to providing further updates as we make strides in this direction.
(This information is primarily sourced from NUG. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).