Chemistree Technology Inc. (US OTCQB: CHMJF) announced that through its indirect, wholly owned California subsidiary, the company has completed the sale of its 9.55-acre land package located in Desert Hot Springs. Gross consideration for sale was $1,957,000.
The Desert Hot Springs property was acquired in 2019 as raw land, and over the course of the intervening two years Chemistree’s development team advanced the land to a shovel-ready state. Advanced planning, permitting, and engineering work was completed – together with the required anthropological and environmental studies. In conjunction with the sale, Chemistree has negotiated a back-in option agreement with the purchaser, such that as the purchaser advances the construction of the project, re-named “AMP Industrial Park”, the Chemistree has the unilateral option to acquire a new 16,460 square-foot cannabis production and processing building at a predetermined price.
Chemistree president Karl Kottmeier commented, “The property was sold at a significant profit. We purchased the DHS property prior to a dramatic downturn in the cannabis market and found, despite the excellent development work by our California team led by our Chief Cannabis Officer Sheldon Aberman, that the project had become essentially un-financeable given the drastic increase in the cost of capex and opex capital. We persevered with the development plan, held the project in good standing throughout and have now turned a profit from this investment. This is an important capital infusion for Chemistree and will allow management and the Board of Directors to better plan for future investments.”
Chemistree Technology Inc. is an investment company with holdings in the U.S. cannabis sector, real estate and a consumer-targeted biotechnology venture. The Company’s corporate strategy is to focus on opportunistic investments across a broad range of industries, and is seeking to invest in early stage, promising companies where it may be the lead investor and can additionally provide investees with advisory services, mentoring and access to Chemistree’s management expertise.