Las Vegas, NV, April 04, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — MJ Holdings, Inc. (OTCQB: MJNE; (“MJNE” or “Company”), a leader in the Nevada cannabis market, has entered into a definitive agreement to acquire a Nye County cultivation and production license for cash and stock valued at $2,500,000.00. The purchase is scheduled to close by June 30th of this year. As previously announced, MJNE recently purchased 260 acres of farmland with 180-acre feet of water rights in the Amargosa Valley of Nevada to expand its cultivation capabilities. Upon closing of the purchase of the cultivation and production licenses, the Company will immediately become the largest marijuana grower in the state.
In December of last year, MJNE harvested almost six thousand pounds of marijuana, the first and largest outdoor crop in Nevada history. Pursuant to the terms of the Company’s contract with Acres Cultivation, upon whose land MJNE produced this initial crop, MJNE is entitled to receive 85% of the gross revenues received from the sale of marijuana grown at their facility. The Company has sold about a third of its inventory and expects a small operating profit for the first quarter. The cultivation license that the Company is buying is pre-approved to grow up to 460,000 sq. ft. of marijuana and, when combined with MJNE’s current 120,000+ sq. ft. under canopy at the Acres facility, will make MJNE by far the largest grower of marijuana in the state of Nevada.
MJNE CEO and Acres Cultivation founding member Paris Balaouras stated, “With the success of our initial grow in 2018, we knew we needed to expand our grow capabilities; thus, the acquisition of our own land, cultivation and production licenses in Nye County was the shortest path to achieving our goals.” Balaouras added: “With this transaction we will have acquired more than $7,000,000 of