Last month, ECGI Holdings, Inc. (OTC PINK: ECGI) entered into a definitive agreement with a privately held farm to further develop its dedicated cannabis acquisition model and become a leader in the California cannabis market. The estate included in the agreement has around 1.7 million square meters that is intended for the cultivation, processing and production of cannabis. One interesting goal that the company has announced is to initially use the land for premium cannabis strains.
The seller will receive $3,500,000 in cash and $500,000 in restricted ECGI common stock for the ownership and future cannabis licenses to be issued. The agreement states that the farm, associated land and mortgages are thus 100% acquired by ECGI Holdings.
A new wind is blowing in 2021
It is now important to obtain the necessary licenses as quickly as possible so that the activities, facilities and business model for regulated processing and production can be optimally deployed or utilized. It is not the only deal that ECGI Holdings has on its agenda, as various planned acquisitions of related cannabis companies and properties suitable for cannabis appear to be part of the overall process.
Thanks to a new management team, the new facility will be well-operated. This is necessary because expertise and knowledge are more than welcome in this fast-growing and successful sector. ECGI Holdings report that many properties and companies are looking to partner with a company that has a great management team with not only knowledge about cannabis, but also a financial and strategic background. As a result of this development, the company is now conducting due diligence on multiple properties and other assets in California in order to add to their portfolio of investments.
Corporate identity change announced
In addition to the definitive acquisition, ECGI Holdings has more surprises in the pipeline for 2021. The company recently announced that it would like to change its corporate identity to Elite Cannabis Group, Inc. The company will begin operating physically in and around California, while maintaining its Nevada corporate registration.
In summary, ECGI Holdings will spend the coming time entering several select cannabis business areas in California, with the potential of expanding its national footprint. Multiple acquisitions are soon to follow as the company can call on a newly experienced management team. By implementing vertical integration and thereby reducing costs, ECGI Holdings wants to realize and strengthen its position as a recognized market leader in the cannabis sector.
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