Cherubim Interests Inc (OTCMKTS:CHIT) released its business goals specific to its recent venture into the controlled environment agriculture industry. The primary focus is on real estate development, controlled environment agriculture division and alternative construction.
Cherubim recently bought an exclusive worldwide license for the use of a patented plant cultivation technology. With the help of this license, the company intends to construct, lease and deploy scalable cultivation facilities for marketable applications.
As Cherubim seek market opportunities in this untapped sector, it is well positioned to benefit from increasing demand for cultivation area to accommodate cannabis and several other plant species. Also, the company will focus on acquisition of real estate and development of multi-family, single and commercial rental assets, and scalable, portable plant cultivation facilities.
The company’s business model is much more like that of mini-storage firms that lease secured regions to corporations and individuals who need it. Cherubim have a hybrid business model in which it will be providing both single tenant and the traditional multi-tenant as its platform.
It will be micro application segment wherein Cherubim will offer a total cultivation solution to a single tenant. It will purchase and develop the asset required and use a macro solution as per the requirements of that tenant. In Multi-Tenant Cherubim Interests will short-list different land positions across the nation and open and develop selected secured locations.
The industrial real estate segment in Colorado is flourishing as marijuana merchants rush to locate ample warehouse space to accommodate their legal marijuana cultivation. The demand for grow space far surpass vacant space, pushing leasing rates as high as $17 per square foot in Denver. Demand is expected to rise as budget officials in state estimate recreational marijuana pot sales to touch $613 million by next year.
In last trading session, the stock price of Cherubim Interests Inc (OTCMKTS:CHIT) declined more than 8% to close the trading session at $0.0430.