G-Pel International Inc (OTCMKTS:KGET) Releases Marijuana Farm Acquisition Update
G-Pel International Inc (OTCMKTS:KGET) a developmental stage acquisition firm in the Cannabis industry and awaiting a name change to CaliPharms, Inc., is in the final phase of closing its first acquisition of a medical marijuana farm in Northern California.
KGET has a signed term sheet with this outdoor marijuana grower firm and is now in the closing stages of completing a share purchase deal to own 51% of this marijuana farm. The property in discussion has been in operation since 2010 as a non-profit California firm, which is fully allowed to cultivate medical pot in California.
In this year, the acquisition candidate is estimating to cultivate nearly 4700 pounds of trim and 4500 pounds of flower annually. The trim will be offered for application in the cannabis oil concentrate operation. The total buy price for this stock purchase deal is outlined to be $1.750 million. G-Pel has outlined to compensate for the deal in the form of promissory notes. It is to be deducted from 51% ownership of firm and secured by 175 shares in company’s Preferred C Series Stock, which were released as security for Promissory Note until it is paid in full.
As per the update, Preferred C Shares are estimated to have a market value of $10,000 per share after being converted to common stock. The management determined that its 51% ownership model worked well for its first acquisition. It incentivizes the prevailing owner operator to have a high degree of efficiency in managing the business.
G-Pel International foresees procuring, merging, and joint venturing with officially permitted fully operational pot-cannabis businesses. It is intending acquisitions deals in medicinal marijuana-cannabis cultivation. Also, it plans to expand into distinct sectors that directly or indirectly are a part of legalized marijuana industry. Initially the focus will continue to remain on medicinal grade marijuana-cannabis within California.© Copyright 2016 OTC News Magazine. All rights reserved.