CGrowth Capital Inc (OTCMKTS:CGRA) Capital Inc with over 1,000 acres of mineral rights and leases has agreed a five-year lease agreement with Tier 3 cannabis producer Wildfire Cannabis Company. Under the terms of the agreement, CGrowth stands to generate $2,000,000 annually in gross payments, made of common area maintenance charges, administration fees, and base rent.
Property Leasing Business
CGrowth Capital Inc (OTCMKTS:CGRA) is aggressively taking advantage of a new legislation in Washington that gives it the right to lease property to licensed cannabis producers and retailers across the state. The management plans to maximize profits and lease rates through the lease agreements as part of a larger plan to generate more shareholder value.
Leasehold agreements should allow the budding company to strategically position itself in the marijuana industry as more states continue to approve the growth and sale of marijuana for medicinal purposes. CGrowth Capital Inc (OTCMKTS:CGRA) is also pursuing other areas of growth notably in areas of oil and gas while trading precious metals and venturing more into real estate development.
Improved Business Opportunities
The deal with Wildfire Cannabis Company provides CGrowth Capital Inc an opportunity to increase its rentable space by 33%, expected to act as a key revenue stream going forward. The company has been attracting a lot of businesses lately having already contracted a professional engineering firm to survey and document its magnesium Dolomite quantities and values.
Data from the forthcoming survey study should allow CGrowth Capital Inc (OTCMKTS:CGRA) to get the true of assets under management while also providing a framework on how the assets can be averaged to generate more value. The company plans to use an asset-backed financing model to extract value from the dolomite reserves instead of equity-based, to avoid diluting the stock.