SILVERDALE, WA / ACCESSWIRE / May 15, 2015 / CGrowth Capital, Inc. (PINKSHEETS: CGRA) (the "Company") is excited to share the details of the Lease Agreement between our wholly- owned subsidiary Chewelah Properties, LLC and Wildfire Cannabis Company, LLC ("Tenant" or "WFCC"), a Tier 3 cannabis Producer in Washington state. The five (5) year, with five (5) year renewal, Lease Agreement calls for a turn-key operational facility provided by the Company for the production and processing of cannabis by the Tenant. The Lease Agreement anticipates gross payments in excess of $2,000,000 annually, to include base rent, tenant improvements, common area maintenance charges, ancillary rentable areas, and administration fees. The Lease Agreement provides for the Tenant to increase its base rentable space by up to 33% as future business growth dictates, in turn increasing the realized rent and revenue to the Company.
In addition to the Lease Agreement, the Company is pleased to announce that it has executed an Option to Purchase Agreement ("Option") with Wildfire Cannabis Company, LLC. The Option gives the Company the right to purchase WFCC for three (3) times its net annual revenue - to be paid by half in cash and half in restricted stock of the Company - for the term of the Lease Agreement. Triggers for the Option include the Company's evaluation of current Federal regulations as they relate to the classification of marijuana as a Schedule I substance, versus the anticipated reclassification to a Schedule II substance. The Company will also continue to evaluate the progression of current banking regulations regarding cannabis, and the ability to provide proper audit accounting moving forward.
"There are so many new opportunities beginning to present themselves to our Company within the marijuana sector that we are beyond excited for what the future holds," stated Bill Wright, CEO of CGrowth Capital. "We are building on existing relationships in Colorado, California, Texas, and other progressive states for future expansion into the broader national marijuana market. By leading in with strong leasehold agreements and the ability to purchase the business at a later date, we are setting ourselves up to be a leader in this emerging market when the legal climate changes."
The Company will continue to deliver on its commitment to transparency to its shareholders and investors, as we actively pursue business opportunities within our target markets, including the cannabis market space, oil and gas ventures, precious metals, real estate development, and the advancement of our dolomite and silica holdings.
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. The Company continues to serve as a holding company for businesses and assets focused on all aspects of mining, minerals, exploration, and commercial real estate. The processing of metal ore mining, mineral and specialty rock extraction, as well as oil and gas production, are multi-billion dollar market opportunities which are capitalized on through the processing, sales, contracting and licensing of Company owned assets. CGrowth Capital's services and solutions are designed to assist landowners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, dolomite, and terrazzo to market. CGrowth Capital continues to focus on acquiring additional land assets, while also providing partners and affiliates with management services, capital funding, contract management and logistical services necessary for the successful execution of operations. Through wholly owned subsidiaries, the Company has begun to strategically leverage assets for maximum value within the legally developing cannabis industry currently underway in Washington State.
For more information about CGrowth Capital, visit their website:http://www.CGrowthCapital.com.
CGrowth Capital, Inc.
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
SOURCE: CGrowth Capital, Inc.