Consortium Inc. (OTCMKTS:CNTMF) And Freedom Town Holdings Enter Management Agreement For The New Zolfo Springs Facility
Consortium Inc. (OTCMKTS:CNTMF) signed a management agreement with Freedom Town Holdings. Freedom Town is a multistate operator that focuses on the production of premium cannabis flower, genetics, products, and extraction.
Consortium to leverage Freedom Town’s expertise in their Zolfo Springs Facility
According to the terms of the management agreement, Freedom Town will offer operational and management consultancy services to Consortium’s newly acquired Zolfo Springs growing and production facility located in Florida. Most importantly, the agreement will run for seven years, and Freedom Town will be compensated based on the level of production at the facility.
Consortium will leverage the growing and processing expertise of Freedom Town to enhance its cultivation in Florida, its main market. Equally, FT will help in accelerating the opening of new Consortium dispensaries in Florida and also ensure there are consistent premium cannabis products and dry flower supply to meet the needs of the growing patient population in the state.
The Zolfo Springs facility sits on 26,000 sq. ft. of space and is expected to begin operation in Q1 2021 after the Florida Department of Health approves. The new facility will complement Consortium’s current cultivation and production operations in Florida, including its main facility located in Tampa. Freedom Town will fund the initial capital costs for construction of the Zolfo Springs facility, which will be refunded through the profits the facility will generate. The company expects the second phase of the construction to commence in 2022, with funding mainly from cash flow generated by the facility.
Consortium expanding its operations in Florida
Consortium continues to enhance its position in the Florida market, and it is targeting expansion of its dispensary network in Florida to 26 by the end of 2020. The company’s executive Board, Chairman Neal Hochberg, stated that they were delighted to partner with Freedom Town to expand their production and cultivation footprint in Florida. He added that they expect the facility to help them expand product offerings and enhance customer experience.
