CGrowth Capital Inc (OTCMKTS:CGRA) has been moving up after its recent announcements of being linked with Wildfire, from the cannabis industry. It finally released a statement that it would be leasing some of its properties in Washington for 5-years for growing pot. The property is owned by CGRA’s subsidiary Chewelah Properties. As per the details of the agreement, the lease would be valid for 5-years, with the option to be renewed for another 5-year.
The property has been planned to be used for growing pot, following the recent legalization of the product in the state. The annual rent would amount up to $2 million, which also includes tenant maintenance charges and administration fees. The lease also accounts for an increase in rent of up to 33%, depending on the business growth of the tenant. Following the lease agreement, the company has executed an option with Wildfire as well. The option would allow CGrowth to purchase Wildfire for three times its net annual revenue. The acquisition can take place by providing half the payment in cash and the remainder in the form of restricted stock.
CGrowth’s business revolves around assets focused on mining minerals, exploration and real estate. Currently, it owns 47 acres of industrial land and around 1,000 acres of mineral rich areas. The company has been very interested in making use of this property to raise its value by using it for the legal cannabis industry. The CEO of CGRA, Bill Wright, stated that companies like Wildfire Cannabis are viewed by the company as some of the most valued tenants. CGRA believes that through the Cannabis market it can maximize the profits and lease rates of its properties. The Cannabis industry is growing and will soon become one of the most valuable industries in the country, CGRA intends to make full use of this fact.
CGrowth Capital Inc (OTCMKTS:CGRA) closed at $0.0077 on May 15. The company has 319.10 million shares being traded in the market, with a 52-week range of $0.00-$0.02.