Cultivation Technologies, Inc.
Cultivation Technologies, Inc. Secures Additional Power from Imperial Irrigation District for Coachella, California Project through $662,030 Investment
Wednesday, January 24, 2018 9:30 AM
IRVINE, CA / ACCESSWIRE / January 24, 2018 / Cultivation Technologies, Inc. ("CTI" or the "Company"), an emerging leader in medical cannabis cultivation, manufacturing, distribution, technology, and branding, announced material progress today for its Coachella, California location - entitled for up to six-acres of cultivation, manufacturing, distribution, transportation, and testing (the "Coachella Project").
In January 2016, the city of Coachella, California adopted ordinances setting forth zoning regulations to allow medical cannabis activities in a zone utilized primarily for auto wrecking (now the "Cannabis Zone"). The original Cannabis Zone in Coachella is comprised of approximately 90 acres of land.
CTI secured the first conditional use permit ("CUP") for commercial cannabis activities from the City of Coachella. Generally lacking sufficient infrastructure to support major development, the Cannabis Zone featured a mere six (6) total megawatts for assignment to local developers. These were assigned to three (3) separate projects, each receiving will-serve letters from Imperial Irrigation District ("IID") for two (2) megawatts each.
IID represented to CTI that a nearby substation could furnish requisite power to the Coachella Project site via CTI investment through the addition of a dedicated circuit. The investment from CTI needed to occur on or before January 29, 2018 to satisfy IID's conditions. Because CTI secured the first CUP in Coachella, IID furnished the company with a will-serve letter (contingent upon CTI's investment) to upgrade available power to a total of seven (7) megawatts. CTI believes the will-serve letter provided by IID is sufficient to power its Coachella Project.
The Company is pleased to announce that a wire transfer was completed for $662,030 to bring this power to the Cannabis Zone which will be dedicated to its Coachella Project. Funds for this transaction were part of a recent $3.15M financing provided by CTI's lead investor, FinCanna Capital (CALI). Based upon representations of IID and other stakeholders in the area, the remaining Cannabis Zone lacks viable options to bring power in the near future to support large projects, thereby increasing the viability and value of CTI's Coachella Project.
CTI has signed a conditional lease-build-to-suit agreement for the Coachella Campus with Graceland Industries, Inc., an entity controlled by Michael Barker of Barker Pacific Group, Inc., a real estate developer based in Los Angeles, California. Barker Pacific Group, Inc. has completed, developed, or redeveloped over US$2.5 billion in real estate projects.
ABOUT CULTIVATION TECHNOLOGIES, INC.
Cultivation Technologies, Inc. provides infrastructure, manufacturing, extraction, distribution, technology, and branding to the legal medical cannabis industry. The company owns 6-acres in Coachella, California, which is entitled for a 111,500+ square foot facility featuring cultivation centers, manufacturing facilities, a testing lab, a distribution hub featuring transportation, and a centralized processing center. For more information, visit www.CultivationTech.com. The Company acquired temporary licenses for "Type 7" manufacturing and distribution from the State of California in January 2018.
This press release constitutes forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, capitalizing the Coachella project, technical advances in the industry, as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made. This press release and the information contained herein is not an offer to buy or sell securities and does not contain investment advice.
SOURCE: Cultivation Technologies, Inc.