McapMediawire -- UC Asset LP (OTCQB: UCASU) announced today that the company has signed second MOU on its recently announced deal of $4 million cannabis property transaction in the State of Oklahoma. Four weeks ago, UCASU entered into a MOU to acquire a 10,000 square foot cannabis cultivation property using $3 million non-cash payment, and to invest $1 million cash to build extra 5,000 square feet of facility at the same site.
The new MOU details on what UCASU calls “Phase I” of the deal. In this Phase I, UC Asset will acquire 20% of ownership in the said property using non-cash payment of 500,000 preferred shares, and then will invest $1 million cash for the aforementioned expansion of the cultivation facility, while increasing UC Asset’s ownership to 50%.
UC Asset will have the option to acquire the remained 50% ownership of the property by issuing 2 million preferred shares.
“The updated plan of Phase I enables us to expediate the construction of the extra 5,000 square feet of cannabis cultivation facility, and therefore it will speed up the return from our investment,” claims Larry Wu, founder of UC Asset. “Now we are expecting to receive monthly payment after 3 months, in comparison to the previous plan under which we will only be paid after 6 months.”
This expedition is a win-win solution for both parties, according to Wu. The State of Oklahoma will hold a special election in March to decide on marijuana legalization. It is projected that the result will be in favor of legalization. For this reason, it is very desirable to complete the said expansion of growing facility as soon as possible, possibly right after the legalization of recreational marijuana within the state.
Most other terms and conditions remain the same, including the amount of monthly payment that UC Asset will receive, which will represent a 14.4% cash on cash annual return. It will still include protective terms for existing shareholders, so that the issuance of 500,000 preferred shares will not dilute the value of holdings by existing shareholders, particularly, it will not dilute dividends allocated to existing shareholders. This is possible since the preferred shares are not entitled to receive dividends unless converted into common shares, and the holder of preferred shares can only convert when revenue from the property has increased to a certain level.
This 10,000 square foot cannabis property, according to UC Asset, is built to the state-of-art standard, with computerized and automatized environment control, and has the capacity to host full cycle cannabis production from creating clones/genetics to extracting cannabinoids.
UC Asset has set a goal of $1 million gross profit for the year of 2023. And the speed-up of this deal will likely help UC Asset to reach that goal.
About UC Asset LP
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies. For more information about UC Asset, please visit: www.ucasset.com
This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.
For More Information Contact: IR@UCasset.com
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