KAYS CEO joins first Franchise Academy sales seminar in Toronto
FORT LAUDERDALE, Fla., Sept. 17, 2019 (GLOBE NEWSWIRE) -- Kaya Holdings, Inc. (KAYS), a vertically integrated legal cannabis enterprise that cultivates and retails medical and recreational cannabis under its proprietary Kaya Shack™ and Kaya Farms™ brands, announced today that it has formally launched its Canadian franchise effort with the appearance of Kaya’s CEO at a Franchise Academy franchise sales seminar in Toronto.
In keeping with KAYS’ exclusive representation agreement with the Franchise Academy (http://www.franchiseacademy.ca), Kaya Shack™ was the sole cannabis opportunity and drew significant audience interest. The Franchise Academy and its founder Shawn Saraga, has 15 years of franchise sales and real estate placement experience, successfully closing over 700 franchise agreements and leases across Canada. The firm estimates that development goals for the highly likable and accessible Kaya Shack™ in the Canadian market to be as high as 75-100 cannabis retail stores.
“It was a great pleasure participating in the Franchise Academy’s franchise sales seminar, the professionalism of which and audience size only serving to increase my enthusiasm for the Canadian franchise opportunity,” KAYS CEO Craig Frank remarked. “We have completed our Franchise Disclosure Documents, our franchise training program, and the structure we would need to franchise in Canada, and later, when regulations permit, the United States,” Frank continued, “and importantly, have also concluded our shop conversion program, which we hope will accelerate franchise development in multiple markets.”
Kaya Holdings to Raise Capital Via Rule 506(c) Offering to Fund KAYS Expansion and Launch Kaya Brands International
Kaya Holdings is completing the documentation necessary to formally issue an offering under Rule 506(c) of Regulation D. The Company may seek to raise up to $15 million for; (a) expansion and completion of the Company’s manufacturing capabilities for a variety of to-be-launched proprietary KAYS owned brands in numerous popular cannabis categories, (b) the launch of these Kaya owned brands, (c) expansion of the Kaya Shack™ footprint, (d) implementation of a franchise operating infrastructure, and (e) development of other foreign opportunities.
We intend to structure the capital raise in a manner to limit dilution to current investors, while allowing them to benefit from our deployment of new capital to fund growth. While we have not finalized the structure and terms of the offering, we anticipate that it will include both shares of KAYS stock as well as shares in Kaya Brands International, the majority-owned subsidiary we intend to form for our planned Canadian and international business operations.
KAYS U.S. Cannabis Operations Summary: KAYS (KAYS), through subsidiaries, produces, distributes or sells legal premium medical and recreational cannabis products, including flower, concentrates and oils, and cannabis-infused foods. In 2014, KAYS became the first publicly traded company to own and operate a Medical Marijuana Dispensary. KAYS has expanded and presently operates three Kaya Shack™ OLCC licensed marijuana retail stores to service the legal medical and recreational marijuana market in Oregon (www.kayashack.com), has developed its own proprietary Kaya Farms™ strains of cannabis, which it grows and produces (together with edibles and other cannabis derivatives) at its Eugene, Oregon licensed recreational and medical marijuana production and processing facility, which it acquired in October 2018 and is operating pursuant to a management agreement pending OLCC approval to reissue the license to MJAI Oregon 1, LLC (KAYS’ main Oregon Operating Subsidiary).
The Company also owns a 26-acre parcel in Lebanon, Linn County, Oregon, which it purchased in August 2017 on which it intends to construct a cultivation and production facility. KAYS filed for zoning and land use approval in early 2018, and after numerous regulatory challenges and delays, we finally received zoning and land use approval in January, 2019 to build an 85,000-square foot Kaya Farms™ greenhouse grow and production facility. Kaya Farms has begun designing the facility for maximum production of approximately 100,000 pounds annually, should recent efforts by Oregon state officials to enable export, or Federal decriminalization permit Oregon cannabis farms to maximize capacity and export cannabis.
Brand and Product Development: The Company maintains a genetics library of over 30 strains of cannabis and has also formulated various edibles, cannabis derivatives and marijuana cigarettes under Kaya owned brand names. Pending approval of our production and processing license, the Company has made advances in the development of its Kumba Extracts, Syzygy Extracts, Pakalolo Juice Company and Kaya Yums brands of extracts, oils, vape cartridges, beverages and a variety of edibles, respectively. The brands join the Company’s Kaya Buddies™ pre-rolls, Kaya Gear t-shirts, and Really Happy Glass accessories already available at Kaya Shack™ stores. Upon successful completion of financing and licensing, KAYS intends to begin bringing the new products to market in late 2019, with a multi-state rollout planned in 2020 to the extent permitted by U.S. legal infrastructure.
Franchising, Expansion: KAYS has retained the Franchise Academy, a leading Canadian Franchise Development and Sales Group to implement the Kaya Shack Retail Cannabis Store program in Canada. The Franchise Academy (http://www.franchiseacademy.ca) and its founder Shawn Saraga, is a member and national sponsor of the Canadian Franchise Association. With over 15 years of industry experience and having successfully closed over 700 franchise agreements and leases across Canada, the Franchise Academy has the knowledge, expertise, network and dedication to assist select franchisors to enter the Canadian market.
Additionally, KAYS has retained Toronto, Canada based law firm of Garfinkle Biderman, LLP to prepare the Franchise Disclosure Documents (“FDD”) and related items for the sale of Kaya Shack™ cannabis store franchises in Canada, which is the only G7 country that has legalized both medical and recreational cannabis production, sale and use on a national level. We expect the franchise sale and placement effort throughout Canada to progress over the next 3-18 months. KAYS plans to ultimately expand its franchise operations to the U.S., as regulations and laws permit.
Important Disclosure: KAYS is planning execution of its stated business objectives in accordance with current understanding of state and local laws and federal enforcement policies and priorities as it relates to marijuana. Potential investors and shareholders are cautioned that KAYS and MJAI will obtain advice of counsel prior to actualizing any portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of marijuana products, engaging in said activities or acquiring existing cannabis production/sales operations). Advice of counsel with regard to specific activities of KAYS, federal, state or local legal action or changes in federal government policy and/or state and local laws may adversely affect business operations and shareholder value.
Forward Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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