LAS VEGAS, NV / ACCESSWIRE / May 26, 2021 / MJ Harvest, Inc. (OTCQB:MJHI) announced today that PPK Investment Group Inc. ("PPK") has entered into a comprehensive cannabis joint venture agreement with FSST Pharms, LLC which is wholly owned by the Flandreau Santee Sioux Tribe ("FSST"). MJHI currently owns 10% of PPK with options to acquire 100% of PPK at any time prior to March 31, 2023 provided any increase can then be accomplished in accordance with Oklahoma law.
FSST is one of 574 Native American Indian tribes recognized by the United States Government. This unprecedented cannabis joint venture immediately creates a burgeoning economic opportunity for PPK and adds to the tribe's already-successful economic development portfolios within the gaming and hospitality industries. The Flandreau Santee Sioux Reservation is situated on over 5,000 acres of land located along and near the Big Sioux River in Moody County, South Dakota. The reservation facilities include the Royal River Entertainment Complex, which is the only legal casino in South Dakota with over 430 gaming devices, a 300-seat entertainment and conference center, a 120-room hotel, an adjacent RV park, plus a full-service restaurant, buffet, snack bar and lounge.
The Tribe has been active in tribal cannabis since 2015 and has a state-of-the-art cultivation facility that it has resumed cannabis cultivation in after the legalization of cannabis in South Dakota in November 2020. The cultivation facility currently houses about 65 strains of cannabis and there are concurrent plans to renovate an existing building to develop a lab, kitchen, packaging, and a dispensary with drive-up service. FSST also has developed a full-line of 2018 Farm Bill Compliant hemp products which is sells under its trade name "Native Nations Cannabis."
Native Americans have a long history of affinities for plants, herbs and other natural resources. In fact, many of the products you see on store shelves are made from naturally sourced plants, herbs, fruits and other naturally occurring plant derivatives grown on Indian reservations. For hundreds of years, American Indians have recognized both the spiritual and healing properties of plants, including cannabis. Industrial hemp and cannabis create potentially large economic opportunities for federal recognized tribes as did the gaming and hospitality industries first recognized almost 5 decades ago.
Federal recognition of the sovereign status of Native American Indian tribes under the Indian Reorganization Act of 1934 (the "Act") allows tribes such as the Flandreau Santee Sioux Tribe to manage their own affairs including their assets, land, and mineral rights. The Act and the ensuing legislation were intended to create a sound economic foundation for the inhabitants of the reservations. Two of the main benefits of federal recognition are exemption from payment of federal taxes and exemption from many federal and state licensing requirements applicable to non-tribal companies. As sovereigns, many tribes have pursued business opportunities in the gaming and tobacco industries. Now, with the growing legalization of marijuana for medicinal and adult use, marijuana provides a new growth area for tribes. FSST is the first tribe to expand into the marijuana industry in South Dakota and the joint venture with PPK is a step toward taking full advantage of this high growth opportunity.
Patrick Bilton, Chief Executive Officer of MJ Harvest, Inc. stated, "We believe this joint venture may be a business and economic game changer for MJ Harvest and all parties involved. It is a winning combination when all parties can benefit, and this joint venture creates many business opportunities for FSST as well as for PPK and MJHI. This joint venture with a federal recognized tribe will provide many advantages to MJHI and PPK as we unveil our business plan."
Mr. Bilton concluded, "The Flandreau Santee Sioux Tribal leaders expect up to 1,000 cannabis customers a day at their operations in South Dakota. This joint venture may create a blueprint for opportunities with other federal recognized tribes as the current joint venture progresses."
PPK grows, harvests, processes and manufactures cannabis products under the Country Cannabis brand name in Oklahoma. As a result of the joint venture, PPK will expand the Country Cannabis brand into South Dakota while the JV will assist the tribe in expanding its Native Nations brand into Oklahoma. The joint venture's goals are to create an immediate cross marketing opportunity for both companies to Oklahoma residents and cannabis customers in South Dakota. PPK will provide the tribe with its proprietary methods to ensure adequate quantities of biomass are available for both partners while efficiently increasing both processing and manufacturing capabilities."
MJHI is currently preparing initial filing documents on a Regulation A offering to be filed with the Securities and Exchange Commission to raise up to $7,500,000 to further expand the equity ownership of PPK, build synergies between MJHI and PPK, and expand the business into new and rapidly growing markets. PPK is currently operating in Oklahoma, is in the process of expanding into Arizona and South Dakota and has several other expansion opportunities in various other markets, including California.
This press release contains forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company assumes no obligation to update any forward-looking statement to reflect any event or circumstance that may arise after the date of this release.
MJ Harvest, Inc.
9205 West Russell Rd., Ste. 240
Las Vegas, NV 89148
SOURCE: MJ Harvest, Inc.