FORT LAUDERDALE, Fla., Aug. 20, 2019 (GLOBE NEWSWIRE) -- Kaya Holdings, Inc. (KAYS), an integrated retailer and producer of legal medical and recreational cannabis, today announced that it had filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 with the Securities and Exchange Commission after the close of market yesterday afternoon.
The Form 10-Q contains financial results for the three and six month periods ending June 30, 2019, the Kaya Farms™ 2019 Summer Harvest Crop Reports, details regarding the recently signed agreement with the Franchise Academy regarding the Kaya Shack™ Retail Cannabis Store Franchise Program Targeting 75-100 Kaya Shack™ retail cannabis stores in Canada by 2024 and the development and rollout schedule of a total of eight Next Stage Traditional and Innovative Kaya Brands currently under development.
Financial Results for the six months ended June 30, 2019 versus the six months ended June 30, 2018. Revenues stayed roughly the same ($512,000 for the six months ending June 30, 2019 versus $546,000 for the same period in 2018) but our Operating Expenses decreased to $912,000 from $1,932 ,000 and our Operating Loss decreased to $637,000 from $1,607,000 for the same periods (approximately a 53% reduction in operating expenses and a 60% reduction in operating losses for the six months ending June 30, 2019 versus $546,000 for the same period in 2018). Additionally, our Interest expense and debt amortization expense decreased to $972,181 for the six months ended June 30, 2019 from $1,407,930 for the six months ended June 30, 2018 due to lesser debt incurred over the past 12 months. Please read our 10-Q and Management Discussion and Analysis.
Kaya Farms 2019 Summer Harvest Kaya Farms™ Cannabis Test Results. The 2019 Summer Kaya Farms™ crop at Kaya Farms yielded eight strains of which seven (7) strains posting test results of total cannabinoid content in excess of twenty (20) percent. Top performers (ranked by total cannabinoid content) include:
Rude Boi at 19.37%
Chem 91 at 20.67%
Zurple Punch at 21.21%
Sour OG at 22.05%
Cherry Chem at 22.2%
Citrus Sap at 23.15%
Nigerian Silver at 24.9%,
Unicorn Delight at 26.45%.
Kaya Shack™ Retail Cannabis Store Franchise Program in Canada. On July 30, 2019 KAYS announced that it had signed an agreement with The Franchise Academy, a leading Canadian franchise development and sales group recognized for its work with top U.S. and international franchise systems to establish and implement the Kaya Shack™ Retail Cannabis Store Franchise Program in Canada to target 75-100 Kaya Shack™ retail cannabis stores in Canada by 2024, subject to regulatory approval and market acceptance. The Franchise Academy (http://www.franchiseacademy.ca) and its founder Shawn Saraga have over 15 years of industry experience and have successfully closed over 700 franchise agreements and leases across Canada.
Kaya™ Brand & Product Development. We continue to progress with the development of the Kaya Shack family of Brands which include 5 operational brands (Kaya Shack, Kaya Farms, Kaya Buddies, Kaya Gear and Really Happy Glass), as well as 4 Next Stage Traditional brands (Kumba Extracts, Syzygy Extracts, Kaya Yums and Soothe Tropical) and 4 Next Stage Innovative brands (Pakalolo Juice Company, Uptown Shaman, Tony Giggles Pleasure Foods and Kind Catering). Upon successful completion of financing and licensing, KAYS intends to begin bringing the new products to market in 2019, with a multi-state rollout planned in 2020 to the extent permitted by U.S. legal infrastructure. Each of these brands have been sourced and branded and await approval of the OLCC license for production to commence.
“I believe we have successfully met our objectives for the first six months of 2019, as we reduced our operating costs in Oregon while preparing ourselves to solidify our position through building out our two cultivation sites, launching our proprietary brands, and preparing to expand the Kaya brands beyond Oregon and into Canada,” commented Kaya CEO Craig Frank. “As we prepare to selectively access capital, we have positioned the Company to maximize its deployment of resources for value creation. We thank our shareholders for their continued support as we prepare to enter this exciting new phase of our development.”
Note: Please visit our website (www.kayaholdings.com) to view the Kaya Farms™ 2019 Summer Cannabis Crop Reports, obtain information on the development of the new Kaya Shack brands and access updates on the Canadian Franchising Developments currently in progress with the assistance of the Franchise Academy (www.franchiseacademy.ca). The 10-Q report may be accessed at www.sec.gov or by logging onto our website www.kayaholdings.com where we have the entire library of KAYS SEC Filings available.
About Kaya Holdings, Inc. (www.kayaholdings.com) and the Kaya Shack™ brand (www.kayashack.com) of licensed medical and recreational marijuana stores:
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 Sunstone Farms legal recreational and medical marijuana production and processing manufacturing 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. We 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.
The Company maintains a genetics library of over 30 strains of cannabis it has developed and has also formulated various edibles, cannabis derivatives and marijuana cigarettes under the “Kaya” brand name.
Kaya Holdings Conference Call Update. The Kaya Holdings Annual Shareholder Call, originally slated for late December 2018/ early January 2019 was postponed due to pending developments with our International division and opportunities in Canada. We apologize for the delay and anticipate announcing a firm date soon. Interested parties are advised to go to www.kayashack.com and register for KAYS updates; a confirmation email and participation code will be sent out to all shareholders and interested parties as soon as the date is set.
Kaya™ Brand and Product Development. The Company has made advances in the development of its 4 Next Stage Traditional brands (Kumba Extracts, Syzygy Extracts, Kaya Yums and Soothe Tropical) and 4 Next Stage Innovative brands (Pakalolo Juice Company, Uptown Shaman, Tony Giggles Pleasure Foods and Kind Catering). The brands join the Company’s Kaya Shack family of Brands which include 5 operational brands (Kaya Shack, Kaya Farms, Kaya Buddies, Kaya Gear and Really Happy Glass). 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. KAYS has retained the Toronto, Canada based law firm of Garfinkle Biderman 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. KAYS is near completion of negotiations with a leading franchise and real estate brokerage firm to lead the initial effort, which will most likely begin in the Province of British Columbia, and advance to other Provinces as license allocations are developed by the Canadian authorities. 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 (as outlined in the Justice Department's U.S. Attorney General Jeff Sessions Memo dated January 4, 2018, and subsequent commentary from the U.S. Attorney for the District of Oregon Billy Williams), and plans to proceed cautiously with respect to legal and compliance issues. 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.
For more information contact Investor Relations: 561-210-7664