SILVERDALE, WA / CRWEPRESSRELEASE / August 12, 2015 / CGrowth Capital, Inc. (OTCMKTS:CGRA) (the “Company”) is pleased to update shareholders on progress made towards its first turnkey lease to a cannabis producer in Washington State. As previously announced, the Lessee has completed its initial interviews and approvals with the Washington State Liquor Control Board (“LCB”), paving the way for the future site(s). The Company has followed this up with preliminary approval from Stevens County for the placement of the facility, and is now preparing for formal permit and site development submission. The Company has budgeted up to $1m for the complete buildout and remodel and is working with investors and lenders to arrive at acceptable financing terms.
Recent changes in the recreational cannabis space in Washington State continue to improve the feasibility of the project. The state enacted changes to its tax structure in July of this year which eliminated the multi-tier tax structure on the producer and processor, and has now shifted to a flat tax at the retail sale only. This lowers the overall cost to the Lessee and improves gross margins. Additionally, medical cannabis dispensaries are being phased out by the end of June 2016, shifting all sales to the new state retail system supported by the producer / processors. The results of this change should positively impact the demand for legal production by up to tenfold, as a majority of sales are still completed via medical dispensary sales – who get their product from co-ops – which will be effectively restricted for sale under the new system.
“Predictions abound about a future of ‘big pot.’ ArcView, a cannabis industry research firm, put the size of the legal marijuana market at $2.6 billion in 2014. Another study by a pro-marijuana group said the industry, if fully legalized across the country by 2020, could be worth $35 billion each year.”
“Whether you are a proponent or not, the cannabis movement is upon us,” stated Bill Wright, CEO of CGrowth Capital, Inc. “Many observers predict this to be the fasted growing market segment in the years to follow. We believe that positioning the Company to be a part of this opportunity, both as a legal lessor now, as well as being in position to complete a future rollup upon national legalization, is a prudent business move to maximize shareholder opportunity.”
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. The Company continues to serve as an alternative asset management company for businesses and assets focused on all aspects of mining, minerals, exploration, and commercial real estate. The processing of metal ore mining, mineral and specialty rock extraction, as well as oil and gas production, are multi-billion dollar market opportunities which is capitalized on through processing, sales, contracting and licensing of assets. CGrowth Capital’s services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, dolomite, and terrazzo to market. CGrowth Capital will focus on acquiring land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of operations. Through wholly owned subsidiaries, the Company has begun to strategically leverage assets for maximum value within the legally developing cannabis industry currently underway in Washington State.
For more information and updates about CGrowth Capital, visit their website or Facebook page:
CGrowth Capital, Inc.
Statements about the Company’s future expectations and all other statements in this press release other than historical facts, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words “anticipate,” “estimate,” “expect,” “intend,” “plans,” “projects,” and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
SOURCE:CGrowth Capital, Inc.