IBrands Acquires Colorado Real Estate And Shovel-Ready Cannabis Construction Project With Long-Term Tenant
- May 09th, 2018
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DALLAS, TX / CRWE PRESS RELEASE / May 9, 2018 - iBrands Corporation, Inc. (OTC PINK: IBRC) ("the Company"), a diversified holdings company, announces that it has acquired Durango Warehouse LLC., holder of 38 acres of arable land in Ignacio, Colorado. The property is located about 1 mile from the Durango-La Plata Airport.
With this acquisition the company has garnered its second leasing location consisting of more than 20 acres of land zoned for cannabis cultivation, representing another leasing opportunity following the mini-storage business concept of subsidiary, Cherubim Interests Inc. (CHIT).
"This is great for the company because we have proven our single tenant or "big box concept" and also compliments the multi-tenant or co-op business model of our Lowell, Oregon property," states CEO Patrick Johnson.
The company will construct a cannabis grow facility that features 10,000 sq. ft. of bloom space, along with an additional 5,000 square feet of additional required space for vegetation, processing, etc. The conceptual drawings to the shovel-ready project may be found (HERE). Additionally, the company has entered into a long-term, 30-year lease with a tenant on the constructed facility on the Ignacio property at a monthly rental rate of slightly over $11,000 USD per month.
"We will continue to acquire properties and deploy technology like this where there is a substantial rental revenue-generating opportunity and that brings real value to our shareholders," stated Johnson.
MINI-STORAGE BUSINESS MODEL
Cherubim's business model is similar to that of mini-storage companies by leasing secured square footage to individuals and corporations who need it. The company however has a hybrid format in which it will be offering both single tenant or "macro solutions" as well as the traditional multi-tenant or "micro solutions" as its platform.
Multi-Tenant (Co-Op) Concept
The multi-tenant concept allows for multiple tenants to rent individual, self-contained BudCube Cultivation Systems (BCS) cultivation units at a secure location staffed with management, maintenance, and security personnel. BCS will offer either facilities constructed of retrofitted shipping containers (Image Here) or Via modular building components (Image Here). Local zoning variances, climate and logistics, will determine which application the company will use.
Single Tenant (Big Box) Concept
The single-tenant concept allows for an entity to enter into a long-term lease agreement with an option to purchase the facility (plus land if applicable) at the end of the lease term for a sales price determined considering fair market value. This is a much larger square footage concept with construction techniques and materials determined on a case by case basis. (Image Here)
Specific to Cherubim's interests, the national industrial real estate market in states where cannabis is legal is booming as pot merchants scramble to find ample warehouse space to house their legal cannabis cultivation as legal cannabis sales topped $1 billion in Colorado last year. From 2009 to 2014, 36% of new industrial tenants were marijuana businesses there and nearly four million square feet of industrial space in Denver was being used for cultivation in 2015, about 3% of the city's warehouse space. Warehouse vacancy rates in Denver fell to just 3.7 % in 2015, down from 7.5 % in 2010.
About BudCube Cultivation Systems
BudCube Cultivation Systems USA ("BCS") has developed a proprietary, fully portable and scalable, Controlled Environment Cultivation Technology that serves as a turnkey solution for cultivators of legal medical and recreational cannabis, as well as any other plant species. Coupled with a real estate development and property management business model, BudCube Cultivation Systems can position itself anywhere in the world where the cultivation of cannabis is legal.
BCS provides cultivation solutions for commercial application. It offers cultivators quick entry into a fast-growing market at a price point that is very attractive when compared to the traditional construction and cultivation solution. BCS features a business model unparalleled in the industry and stands to benefit greatly as more and more market participants seek to gain entry into this sector.
For more information, visit www.budcube.com
About Cherubim Interests Inc.
Cherubim Interests specializes in alternative construction projects, as well as covering the entire spectrum of real estate development: due diligence, acquisition, planning, construction, renovation, and management; providing complete beginning-to-end development programs for commercial, mixed use, and residential projects and properties.
For more information, visit www.cherubiminterests.com
About iBrands Corporation, Inc.:
iBrands Corporation, Inc. is a holding company that acquires and operates niche market brands having unique market positions within sectors that demonstrate return on investment potential. Business partnerships throughout the United States, Canada, Mexico, South America, and Europe provide our brands many markets to expand into and produce consistently high growth rates for the next decade. www.iBrandscorporation.com
Safe Harbor Statement
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.
For more information please contact:
iBrands Corporation Inc.
Patrick J. Johnson
Chief Executive Officer
SOURCE: iBrands Corporation, Inc.
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