This company is planning to do what SKTO is doing but in colorado.........http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9464661
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Proposed Business:
The Company plans to lease growing space and related facilities to licensed marijuana growers and dispensary owners for their operations. Additionally, the Company plans to provide a variety of services to the cannabis industry, including a medical marijuana research and new product development laboratory. The Company will not harvest, distribute or sell cannabis or any substances that violate United States law or the Controlled Substances Act, nor does it intend to do so in the future.
The Company plans to acquire two properties for the initial phase of its business.
The first property is a 90 acre parcel of land near Pueblo, Colorado. The Company estimates that the Pueblo property will cost approximately $3,000,000, with $1,300,000 payable at closing and $1,700,000 payable over a three-year period. If the Company is successful in acquiring the property, which is permitted for the legal growing of marijuana for medical purposes, the Company plans to spend approximately $1,800,000 for the construction of a facility which will be leased to medical marijuana growers. The proposed facility will include specialized equipment necessary to allow for the use of the facility by medical marijuana dispensaries. The facility will have indoor greenhouse growing facilities, as well as a research, testing and new product development laboratory. Tenants will pay rent and other fees to the Company for the use of the facility.
The second property is a 9-acre parcel located in Boulder, Colorado. Improvements on the property consist of a 40,000 square foot greenhouse and a 2,000 square foot building, with 8 undeveloped acres. This property is presently leased until August, 2014 to a state licensed cannabis dispensary. If the Company is successful in acquiring this property, the Company is of the opinion that it can negotiate a new lease on the property which would provide for rental income of approximately $130,000 each month to the Company.
The Boulder property will cost approximately $6,500,000, with $4,500,000 payable at closing and $2,000,000 payable over a three-year period.
The Company refers to its proposed growing facilities as Cannabis Campuses. The Cannabis Campuses will offer dispensary owners the opportunity to grow marijuana in a controlled setting without the costs associated with the implementation of an expensive and difficult to manage growing facility.
If successful, the Company plans to reproduce the Cannabis Campus concept in other locations in Colorado, as well as other states.
There can be no assurance that the Company will be able to obtain the capital needed to purchase the properties.
Market Conditions
In Colorado (with 5.1 million residents), the 2013 medical marijuana market, with approximately 500 licensed dispensaries and 110,000 legal medical users, is believed to be $200,000,000.
While projections vary widely, many believe that when legalization occurs in 2014, the Colorado medical and recreational market combined will reach $600,000,000 (according to Colorado State University).
In Colorado, the market will be expanded in January 2014 to include adult use, including visitors from other states. Voters in Washington state recently approved a ballot measure to legalize cannabis for adult use. Many experts
predict that other states will follow Colorado and Washington in enacting legislation or approving ballot measures that expand the permitted use of cannabis.
Government Regulation
Marijuana is a Schedule-I controlled substance and is illegal under federal law. Even in those states in which the use of marijuana has been legalized, its use remains a violation of federal laws.
As of July 31, 2013, 18 states and the District of Columbia allow its citizens to use Medical Marijuana. Additionally, voters in the states of Colorado and Washington approved ballot measures last November to legalize cannabis for adult use. The state laws are in conflict with the federal Controlled Substances Act, which makes marijuana use and possession illegal on a national level. The Obama administration has effectively stated that it is not an efficient use of resources to direct law federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws allowing the use and distribution of medical marijuana. However, there is no guarantee that the administration will not change its stated policy regarding the low-priority enforcement of federal laws. Additionally, any new administration that follows could change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial damage to ACS and its shareholders. While ACS does not intend to harvest, distribute or sell cannabis, the Company may be irreparably harmed by a change in enforcement by the Federal of state governments.
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Proposed Business:
The Company plans to lease growing space and related facilities to licensed marijuana growers and dispensary owners for their operations. Additionally, the Company plans to provide a variety of services to the cannabis industry, including a medical marijuana research and new product development laboratory. The Company will not harvest, distribute or sell cannabis or any substances that violate United States law or the Controlled Substances Act, nor does it intend to do so in the future.
The Company plans to acquire two properties for the initial phase of its business.
The first property is a 90 acre parcel of land near Pueblo, Colorado. The Company estimates that the Pueblo property will cost approximately $3,000,000, with $1,300,000 payable at closing and $1,700,000 payable over a three-year period. If the Company is successful in acquiring the property, which is permitted for the legal growing of marijuana for medical purposes, the Company plans to spend approximately $1,800,000 for the construction of a facility which will be leased to medical marijuana growers. The proposed facility will include specialized equipment necessary to allow for the use of the facility by medical marijuana dispensaries. The facility will have indoor greenhouse growing facilities, as well as a research, testing and new product development laboratory. Tenants will pay rent and other fees to the Company for the use of the facility.
The second property is a 9-acre parcel located in Boulder, Colorado. Improvements on the property consist of a 40,000 square foot greenhouse and a 2,000 square foot building, with 8 undeveloped acres. This property is presently leased until August, 2014 to a state licensed cannabis dispensary. If the Company is successful in acquiring this property, the Company is of the opinion that it can negotiate a new lease on the property which would provide for rental income of approximately $130,000 each month to the Company.
The Boulder property will cost approximately $6,500,000, with $4,500,000 payable at closing and $2,000,000 payable over a three-year period.
The Company refers to its proposed growing facilities as Cannabis Campuses. The Cannabis Campuses will offer dispensary owners the opportunity to grow marijuana in a controlled setting without the costs associated with the implementation of an expensive and difficult to manage growing facility.
If successful, the Company plans to reproduce the Cannabis Campus concept in other locations in Colorado, as well as other states.
There can be no assurance that the Company will be able to obtain the capital needed to purchase the properties.
Market Conditions
In Colorado (with 5.1 million residents), the 2013 medical marijuana market, with approximately 500 licensed dispensaries and 110,000 legal medical users, is believed to be $200,000,000.
While projections vary widely, many believe that when legalization occurs in 2014, the Colorado medical and recreational market combined will reach $600,000,000 (according to Colorado State University).
In Colorado, the market will be expanded in January 2014 to include adult use, including visitors from other states. Voters in Washington state recently approved a ballot measure to legalize cannabis for adult use. Many experts
predict that other states will follow Colorado and Washington in enacting legislation or approving ballot measures that expand the permitted use of cannabis.
Government Regulation
Marijuana is a Schedule-I controlled substance and is illegal under federal law. Even in those states in which the use of marijuana has been legalized, its use remains a violation of federal laws.
As of July 31, 2013, 18 states and the District of Columbia allow its citizens to use Medical Marijuana. Additionally, voters in the states of Colorado and Washington approved ballot measures last November to legalize cannabis for adult use. The state laws are in conflict with the federal Controlled Substances Act, which makes marijuana use and possession illegal on a national level. The Obama administration has effectively stated that it is not an efficient use of resources to direct law federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws allowing the use and distribution of medical marijuana. However, there is no guarantee that the administration will not change its stated policy regarding the low-priority enforcement of federal laws. Additionally, any new administration that follows could change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial damage to ACS and its shareholders. While ACS does not intend to harvest, distribute or sell cannabis, the Company may be irreparably harmed by a change in enforcement by the Federal of state governments.
