RIVERSIDE, CA - (NewMediaWire) - March 28, 2017 - CaliPharms, Inc. (OTC PINK: KGET), a Company operating in the California Medicinal Cannabis industry, is pleased to announce it has duly executed the definitive stock purchase agreement with Pacific Cannabis Growers (PCG), a Humboldt County California Medical Cannabis Farm. (www.pcgrowers.com)
PCG is a medical cannabis farm that is currently in the process of permitting land in Humboldt County for cultivation of medical cannabis. Seedlings are being grown as shown on the PCG website and a cannabis cultivation permit is expected to be issued sometime in late April. Upon the permit being issued, PCG will build fencing and prepare the area for cultivation. PCG expects to achieve two harvests in 2017 provided the permit comes in during April 2017.
CaliPharms has purchased 51% stock ownership of PCG in a structured buy out over a 5 year period. The terms of the agreement are based on the profitability of PCG. The final purchase price is based on the actual profit margin of PCG. In the event the market conditions change in the cannabis growing industry, the agreement with the parties has the flexibility to adjust the final purchase price. The agreement is based on a ten times multiple in its profits and it is payable in CaliPharms preferred series stock. The preferred stock will be eligible to be sold in a leak out agreement over a 5 year period after it has been issued and aged under the applicable SEC rules.
Joshua Clark, President of Pacific Cannabis Growers, stated, "We are very pleased to be joining up with CaliPharms. This deal is performance driven, which will benefit us, CaliPharms and its shareholders in the long run. To be involved with a group as excited about the cannabis industry as we are is a blessing. We plan to produce top quality cannabis for the medical market and we value the long term goals of CaliPharms growth and sustainability."
CaliPharms CEO Bo Linton stated, "Pacific Cannabis Growers is a very important part of our long term plan for continued growth. Joshua Clark is now a valuable part of the CaliPharms team and I couldn't be more pleased to have his expertise, knowledge, and experience on our side." Linton continued, "Joshua knows this California industry as good as or better than anyone and our goals and interests are aligned which is great news for all of our shareholders. This shareholder friendly deal structure only works because Joshua understands the long term value of our fledgling company and we are in it for the long run."
CaliPharms long term business plan includes acquiring numerous cannabis production facilities and product lines. This will allow us to supply our other business ventures with the raw materials needed to make award winning cannabis products, and to create a new market suppling other canna-ventures with the raw material they need to produce their products. Securing CaliPharms cannabis supply/production capability is our top priority. This will help establish CaliPharms as an industry leader in the near future.
Pacific Cannabis Grower's permit type (Mixed-Light) will allow for multiple harvests year round, in fully automated greenhouses, giving this acquisition additional value for Calipharms.
The farm will be operating a 10,000 sq ft "mixed light" commercial cannabis cultivation permit. *Mixed light is growing in greenhouse with artificial light supplementation; this allows for multiple harvests through the year. The estimated total 2017 Gross Harvest/Income value is $1,868,160.
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About CaliPharms, Inc.
CaliPharms Inc., trading under the symbol (KGET) which trades under its former name "Kleangas Energy Technologies, Inc." is a medical marijuana-cannabis business. The Company operates through its 51% owned subsidiary County Junction Farms, Inc., and Pacific Cannabis Growers, Inc. within the State of California. The Company currently is focused within the medical marijuana-cannabis industry. The second tier of development for the company will be to expand into other sectors that support the legalized cannabis industry. The company intends to expand its operations as the laws for each individual State change and allow.
About Country Junction Farms, Inc.
Founded in 2010, Country Junction Farms is a fully permitted cultivator of medical cannabis within the State of California.
About Pacific Cannabis Growers, Inc.
PCG is a medical cannabis farm that is currently in the process of permitting land in Humboldt County for cultivation of medical cannabis. PCG currently is fully funded for one year of cultivation.
Safe Harbor Statement:
Safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as CaliPharms or KGET or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Investment into a microcap company is a high risk investment and it should only be considered if you are able to afford a total loss of the investment. Laws and Regulations of Marijuana are currently in direct contradiction between California and Federal Law and these factors should be a part of your consideration when making an investment into KGET.