ECGI Holdings Inc (OTCMKTS:ECGI) is fast emerging as a company that is more focused on acquisitions. The company which is aiming to soon operate as the Elite Cannabis Group is involved in the acquisition of struggling cannabis companies operating in California. Additionally, it is also involved in acquiring distressed cannabis cultivation properties and processing facilities in the state.
California is one of the most lucrative and fastest-growing cannabis markets in the industry and back in February, ECGI Holdings made a major announcement with regards to an agreement. ECGI announced that it signed a new definitive management services agreement by way of which it is going get into the cannabis delivery space.
The entry into the cannabis delivery business is going to be facilitated through collaboration with a company that holds a California cannabis license and is based out of Lynwood.
The contract for the same will be held by Nug Avenue Inc, a fully owned subsidiary of ECHI Holdings which is also classified as a California corporation. However, that is not all. ECGI Holdings is also aiming to complete another agreement that will see it selling as much as 70% of its interest in Nug Avenue to a third party.
The Chief Executive Officer of ECGI Holdings William Chung spoke about the latest developments. He stated that the company is going to continue with its efforts to boost its investments in the California cannabis space. Back in January this year, ECGI had announced that it had completed the acquisition of prime real estate in Northern California that had already been zoned for the cultivation of cannabis.
The latest move from ECGI Holdings is aimed at getting a foothold in the rapidly growing cannabis delivery industry in the state. The company is expected to continue to explore the possibility of completing more such deals in the cannabis industry in California. Chung stated at the time that ECGI Holdings was actually vetting more such transactions.
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