MJ Harvest (OTCMKTS:MJHI) Announces Asset Purchase Agreement: Stock Jumps
Shares of MJ Harvest (OTCMKTS:MJHI) closed higher in the previous session.
Market Stats
On Wednesday, MJHI stock gained 2.35% to $0.48 with more than 28.9k shares, compared to its average volume of 12.67k shares. The stock moved within a range of $0.4700 – 0.4900 after opening trading at $0.47.
MJ Harvest Signs Agreement to Purchase Cannabis Extraction and Manufacturing Licenses and Assets for Colorado Operations
MJ Harvest (OTCMKTS:MJHI) on February 16, 2022, announced that the wholly-owned subsidiary, Country Cannabis (CCCO) Inc has forayed into Asset Purchase Agreement to buy cannabis and extraction licenses. The company will also buy equipment for operating a cannabis manufacturing facility in Colorado.
The buying price is 100,000 common shares of MJHI. The acquisition is affiliated with active operations in Oklahoma, South Dakota, and Arizona, through direct ownership as well as affiliated entities including PPK Investment Group, Inc, an Oklahoma company. The acquisition will depend on the approval of the State of Colorado Department of Revenue Marijuana Enforcement Division as well as the City of Denver. CCCO will be working with PPK for developing the best manufacturing as well as quality control practices for the business.
Located in a leased facility for five years, the Denver operations has a base rent of $6,000 per month and about $1,700 per month for triple net charges. The lease gives a base rental increase of 5 percent every year after the first year.
Patrick Bilton, Chief Executive Officer of MJHI said that the acquisition demonstrates continuous efforts on expanding multistate operations by locating and taking assets on favorable terms. Bilton added that he had recently visited operations in Oklahoma and it is amazing to see the relationship with Country Cannabis Brand and PPK. The CEO added that the firm will leverage PPK’s expertise and looks to establish the brand in Colorado in the near term.
Key Quote
Patrick Bilton, Chief Executive Officer of MJHI commented, “This acquisition reflects our continuing efforts to expand our multistate operations by locating and acquiring assets and licenses that are available on favorable terms. I recently visited our operations in Oklahoma, and we couldn’t be happier with our relationship with PPK and the Country Cannabis Brand. We continue to leverage PPK’s expertise and look forward to establishing the Country Cannabis brand in Colorado in the near term.”
Traders Corner
MJHI stock is trading below the 20-Day and 50-Day Moving averages of $0.4808 and $0.4828 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.4889.
