LOS ANGELES, CA, July 02, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Agritek Holdings, Inc. (AGTK) www.AgritekHoldings.com, a fully integrated, active real estate investor for the cannabis sector and consultant for multiple cannabis brands, today announced that the Company has negotiated terms and effected a Letter of Intent to acquire 100% of a recreational manufacturing license and Vape Company based near Vail, Colorado. Terms of the closing of the license transfer and final acquisition are subject to standard due diligence and approval of the Definitive Agreement by the parties.
The new manufacturing license and asset acquisition are the result of new legislation passed by Colorado last month allowing outside investments from public companies for the first time in the state of Colorado. Colorado’s prohibition on publicly traded cannabis companies, which dates back to legalization and was previously preserved by former Governor John Hickenlooper, is now a relic of the past.
Gov. Jared Polis signed legislation recently ending the ban, opening up Colorado’s cannabis industry to outside investors for the first time. Agritek Holdings as a publicly traded Company through its subsidiary based Denver Company “American Hemp Trading Inc.” can now acquire Colorado based cannabis companies within the state, earning it potentially millions of dollars in annual revenue through acquisition of established licensed operations. Publicly traded cannabis companies have operated in Colorado for some time, but were restricted in their ability to hold state marijuana licenses.
“This change in legislation and state law is expected to bring new cannabis products to Colorado from public companies like ourselves that have previously stayed away from the state due to licensing issues not offered to public companies. We expect the new opportunities will also accelerate consolidation and increased M&A activity, with large national chains and public deals purchasing Colorado’s smaller cannabis companies seeking cash infusions,” stated Neil Mundie, CEO of Agritek Holdings, Inc.
Some of the state’s largest cannabis companies lobbied lawmakers to support the bill. Beyond Broadway LLC, the company behind LivWell dispensaries, spent more than $20,000 on lobbying in the first three months of 2019, including on the investment bill. Medicine Man spent $18,000 on lobbying, The Green Solution paid $16,251 and Native Roots used $15,000, state records show.
After the bill passed, Medicine Man Technologies, a publicly traded cannabis firm in Denver, announced it can now acquire the companies MedPharm Holdings and Medicine Man Denver.
“We expect Agritek Holdings to complete this proposed acquisition of our new manufacturing license and operation including its popular vape and flower brands with distribution presently in Vail and Aspen. Further, we are seeking expansion of our hemp cultivation operations within Colorado Springs also presently under negotiation,” further stated Mundie.
About Agritek Holdings, Inc.
Agritek Holdings, Inc. (www.AgritekHoldings.com), is a fully integrated, active investor and operator in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of cannabis related holdings. Currently, the Company is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property/brands, and infrastructure, with operations in three U.S. States, Canada and Puerto Rico. Agritek Holdings, Inc. presently owns or manages property in Colorado, Washington State, Puerto Rico and Canada and has licenses with permitted facilities in California approved for cultivation as well as manufacturing capabilities. The company owns several Hemp and cannabis brands for distribution including "Hemp Pops", Hemp oil wellness products and "California Premiums". Agritek Holdings Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act, nor does it intend to do so in the future.
This press release may contain certain 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. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein.
Agritek Holdings, Inc.