Monarch America Inc (OTCMKTS:BTFL) disclosed that it finalized as exclusive Management Services Deal with Greensky Inc. It is a company developing marijuana grow operation in Colorado and is currently near completion of a state-of-the-art indoor recreational and medical marijuana grow facility developed and engineered by Monarch America. Monarch America expects the construction at the Denver location to be finished in next two to three weeks with the required permits and licenses transferred to the facility within 30 days.
As per the deal, Monarch America will manage all activities related to cultivation, distribution, and operations, indirectly and directly, to both recreational and medicinal marijuana and related products. It will oversee the various operations including but not limited to, day-to-day operational management, staffing, logistical services, technology and equipment leasing, growing, property management and inventory control. The term for exclusive deal is of three years.
The expert view
Eric Hagen, the CEO of Monarch America said that the team has been working with Greensky on advance grow facility from last many months. He is confident that with the expert assistance from Monarch’s team and the expertise and equipment delivered by the company The Big Tomato segment, the Greensky grow facility will be second to none.
Hagen further added that Monarch America contracted with Greensky to run and operate the new advanced facility for the associate company for the next three years. The company expects to generate considerable monthly recurring management fees from Greensky project. Also, depending on the initial success of the project, the management intends to expand the implemented business strategy with similar management and consulting deals with additional existing and new grow facilities.
In last trading session, the stock price of Monarch America surged more than 4% to close the trading session at $0.130. The gains came at a share volume of 1.47 million.