Las Vegas, NV, Dec. 11, 2018 — via NEWMEDIAWIRE — MJ Holdings, Inc. (MJNE) (the “Company”), a leader in the Nevada cannabis market, updates shareholders as their first year as a new company comes to a close. Paris Balaouras CEO of MJ Holdings said this:
As we begin to close in on the anniversary of our first year in business I want to share some insights, updates and my thankfulness for all of your continuing support. As the saying goes “good things come to those who wait.” When we completed our reverse merger last December we knew that we had a lot of hard work and challenges ahead of us. Our initial annual audit proved to be one of those challenges. As a U.S. public company in the cannabis industry, our audit firm conducted a thorough analysis of our company to insure that completely accurate and transparent information would be made available to our shareholders and the general public. This in-depth review took almost seven months to complete and naturally caused you, our valued shareholders, to have some concerns. I want to thank you all for your patience while our annual audit and subsequent quarterly reports were being prepared.
In April of this year we entered into an agreement with a licensed operator to manage a three-acre plot at their cultivation facility in the Amargosa Valley of Nevada and we petitioned the State of Nevada to let us conduct a “test” grow of marijuana utilizing a state-of-the-art high tech mesh system. We began erecting the facility in March of this year and received approval from the state in August to move more than 8,000 marijuana plants onto the site. Utilizing the mesh system, first developed in Israel to improve desert farming conditions, that filters out harmful UV light, reduces heat and increases humidity, while protecting the plants from insects and pests. We were able to achieve results that rival indoor and greenhouse growing conditions but with considerably higher yields and lower costs per plant. We began harvesting the crop on November 30th and we will complete it in mid December. We expect to cure about 3,500 lbs. of high quality, high THC top flower and dry more than 4,000 lbs. of plant “trim” to be extracted into THC/CBD distillate. Current wholesale pricing for trim in Nevada is over $650 per pound and flower is wholesaling for about $2,000 per pound. We expect to gross more than $10,000,000 from this harvest. We are proud of this achievement in light of many obstacles and hurdles placed in our path by regulatory agencies, Canadian cannabis industry headwinds, and turbulent US political policies. Growing our product with our mesh system gives us a significant competitive advantage as we are able to cultivate marijuana for considerably less (50% – 75%) than in a greenhouse or indoor facility. This test grow has established MJ Holdings as a preeminent cultivator of high quality marijuana. We are in contract to purchase additional acreage for our 2019 grow and we will be scaling up by more than 3X next year. This unique style of growing, which was led by our incredible grow team, Mike Kelley and Doug Warren, will be a model that we will implement in future cultivation projects with our partners in other states and internationally.
While we had some structural and related issues at our indoor cultivation facility, the Highland Show Grow that has caused unexpected construction delays, we are happy to report that our 1600 sq. ft. Phase 1 section of the facility is ready to go online. We will be utilizing this facility to produce high quality marijuana seeds for our own use and to sell to other cultivators. Producing our own seeds generates considerable cost savings, further reducing our cost per pound to grow marijuana.
In November we launched our new brand of marijuana products, Highland Brothers (www.highlandbrothers.com). Highland Brothers embodies what we stand for: Honor, Vision and Drive, while being a truly iconic Las Vegas brand. Launching with the newly patented Q-cup quartz vaping system, Highland Brothers will feature pre-rolls, edibles and other marijuana concentrate products for distribution throughout the Nevada market.
In 2019 we will commence our industrial hemp operations to take advantage of the continually growing demand for CBD isolate in the U.S. CBD is found in numerous dietary supplements, beverages, pet products, cosmetics and the list is growing almost daily. The anti-inflammatory aspects of CBD and the other health benefits are currently being investigated by numerous researchers and drug companies and we feel the future for hemp and CBD is limitless. Our grow team will plant 100 acres of hemp that should yield about 10,000 kilos of CBD isolate with a wholesale value in excess of $40,000,000. Our belief in the future cultivation of hemp for the production of high quality CBD distillate and isolate is so strong that we are securing rights to cultivate up to an additional 2,000 acres in 2020.
As we continue to look forward to 2019 we are preparing to expand both domestically and internationally, MJ International Research Company, Ltd., a wholly owned subsidiary of MJ Holdings, Inc., will be headquartered in Dublin, Ireland. We will launch our entry into the European marketplace, initially cultivating 10 acres of medical marijuana, utilizing our proven mesh system for distribution in Greece and export to Germany, Poland and other EU countries as the use of medical marijuana becomes legal. We have formed a strategic partnership with an Oklahoma cultivation and dispensary license holder to operate their grow and dispensary facilities. We have formed Alternative Hospitality, Inc., to operate a chain of cannabis lifestyle hotel properties. This project is being done in partnership with a renowned U.S. hotel operator and we are excited about the future of this opportunity, and I look forward to sharing more about this unique business model in the coming months.
I know many of you have been concerned about the recent volatility of our stock price and we share your concerns. Our stock price is subject to overall market conditions, particularly those affecting cannabis stocks and there has been downward price pressure in the sector of late. Other factors that influence our stock price include the marketplace’s short-term ability to absorb large blocks of our securities coming into the market due to either registration of those securities or expiration of other holding period restrictions. We believe the markets will react positively to our quarterly earnings and our plans for growth in 2019. Most of you have been with us since the beginning, our “Friends and Family” and, on a personal level, your continuing support and belief in us now and into the future is invaluable. We have taken initial steps to get our stock listed on the Canadian Stock Exchange (“CSE”) which may allow us to establish relationships with well known Investment Banks that can support our continued growth.
In closing, I feel that our future is bright and that changing attitudes toward cannabis use at both the local and federal levels will insure our long-term success. As always, you, our shareholders, are the ones who allow us to set our course for the future and we appreciate you and want to again thank you for all your support.
Wishing everyone a happy and healthy holiday season.
About MJ Holdings, Inc.
MJ Holdings Inc. (MJNE) is a diversified publicly traded holding company providing management and consulting services to the regulated cannabis industry. Through our subsidiaries we provide cultivation and production management services and infrastructure development. Our management operations include a three-acre outdoor marijuana cultivation facility in the Amargosa Valley if Nevada, as well as a fully licensed indoor agritourism facility located in the city of Las Vegas known as the Highland Show-Grow. We are also active in identifying and acquiring revenue producing assets and licenses within legalized cannabis markets both nationally and internationally.
The information provided in this press release may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipates,” “plans,” “expects,” “intends,” “will,” “potential,” “hope” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company’s periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled “Risk Factors”, copies of which may be obtained from the SEC’s website at www.sec.gov. The parties do not undertake any obligation to update forward-looking statements contained in this press release.