Cherubim Interests, Inc. (CHIT) Set to Benefit from Strong Performance of Colorado Cannabis Industry
Following its legalization of cannabis for recreational use at the beginning of 2014, the performance of Colorado’s recreational and medical marijuana markets have exceeded expectations. Last year, the state recorded just shy of $700 million in total sales, beating market forecasts by more than 20 percent, according to the Legislative Council of the Colorado General Assembly. This sharp increase in demand produced a similar spike in cultivation figures, with more than 500,000 plants being cultivated each month as of December 2014. Cherubim Interests, Inc., through wholly-owned subsidiary BudCube Cultivation Systems USA, is primed to capitalize on this cultivation boom through its unique mini-storage business model.
While the term ‘mini-storage’ probably brings to mind small garages packed full of antiques and holiday decorations and owned by companies like Public Storage (NYSE: PSA) and AMERCO (NASDAQ: UHAL), Cherubim’s innovative approach to the concept could be the perfect solution for meeting the rising demands of Colorado’s cannabis industry while maintaining a low barrier of entry for startup cultivation operations. Through its single tenant ‘micro’ units, Cherubim plans to enter into agreements with individual tenants to acquire and develop an affordable solution to cannabis production. Likewise, the company will offer ‘macro’ solutions to larger clients that can then be subleased to individual tenants.
“Even though we will first market test leasing units in the legal cannabis industry, there are many other practical applications for this technology,” Patrick Johnson, chief executive officer of Cherubim, stated in a news release. “Across the globe, massive food shortages exist due to extreme drought conditions and this application will serve this market niche as well in the future.”
Reaffirming the viability of Cherubim’s strategy, the industrial real estate market in Colorado is currently thriving as marijuana merchants scramble to locate ample space in which to house their legal cannabis cultivation operations. This demand is illustrated by the current leasing rates for industrial space in Denver, which are roughly four times the national average at $17 per square foot. This demand is expected to continue its climb in the coming months, with state budget officials predicting recreational sales of $613 million over the next year.
As Cherubim continues to utilize a hybrid business model that capitalizes on the performance of legalized cannabis markets around the country while maintaining a focus on the acquisition and development of residential and commercial rental properties, the company is in a favorable strategic position to promote sustainable growth. For prospective shareholders, this positioning makes Cherubim an intriguing investment opportunity moving forward.
For more information, visit www.cherubiminterests.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
Following its legalization of cannabis for recreational use at the beginning of 2014, the performance of Colorado’s recreational and medical marijuana markets have exceeded expectations. Last year, the state recorded just shy of $700 million in total sales, beating market forecasts by more than 20 percent, according to the Legislative Council of the Colorado General Assembly. This sharp increase in demand produced a similar spike in cultivation figures, with more than 500,000 plants being cultivated each month as of December 2014. Cherubim Interests, Inc., through wholly-owned subsidiary BudCube Cultivation Systems USA, is primed to capitalize on this cultivation boom through its unique mini-storage business model.
While the term ‘mini-storage’ probably brings to mind small garages packed full of antiques and holiday decorations and owned by companies like Public Storage (NYSE: PSA) and AMERCO (NASDAQ: UHAL), Cherubim’s innovative approach to the concept could be the perfect solution for meeting the rising demands of Colorado’s cannabis industry while maintaining a low barrier of entry for startup cultivation operations. Through its single tenant ‘micro’ units, Cherubim plans to enter into agreements with individual tenants to acquire and develop an affordable solution to cannabis production. Likewise, the company will offer ‘macro’ solutions to larger clients that can then be subleased to individual tenants.
“Even though we will first market test leasing units in the legal cannabis industry, there are many other practical applications for this technology,” Patrick Johnson, chief executive officer of Cherubim, stated in a news release. “Across the globe, massive food shortages exist due to extreme drought conditions and this application will serve this market niche as well in the future.”
Reaffirming the viability of Cherubim’s strategy, the industrial real estate market in Colorado is currently thriving as marijuana merchants scramble to locate ample space in which to house their legal cannabis cultivation operations. This demand is illustrated by the current leasing rates for industrial space in Denver, which are roughly four times the national average at $17 per square foot. This demand is expected to continue its climb in the coming months, with state budget officials predicting recreational sales of $613 million over the next year.
As Cherubim continues to utilize a hybrid business model that capitalizes on the performance of legalized cannabis markets around the country while maintaining a focus on the acquisition and development of residential and commercial rental properties, the company is in a favorable strategic position to promote sustainable growth. For prospective shareholders, this positioning makes Cherubim an intriguing investment opportunity moving forward.
For more information, visit www.cherubiminterests.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
