LOS ANGELES, CA (UPTICK Newswire – March 14th, 2016) PINEAPPLE EXPRESS, INC. (OTCPink:PNPL) (the “Company”), a publicly traded company that offers cannabis industry consulting, technology, investments, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, announced today that the Company was prominently featured in a cover story about its new cultivation complex published by The Sacramento Bee, the fifth largest newspaper in California, and the 27th largest paper in the U.S.
The Company announced a robust plan for “Pineapple Park”, its new cannabis cultivation complex, and has expanded the facility with additional structures and acreage. The complex is expected to increase to fifteen buildings and greenhouses totaling approximately 170,000 square feet of cannabis cultivation space on 10.08 acres of land from the current 150,000 square feet of cannabis cultivation space.
The terms of the Company’s two existing consulting and subsequent lease arrangements and proposed consulting and lease arrangements are as follows:
- Tenant/licensees shall pay a one-time up-front fee of between $150,000 to $500,000, depending on whether they desire a greenhouse or modular building rental. The fee shall be paid in progressive payments as licensing milestones are reached and includes assistance in securing a Regulatory Permit for the tenant/licensee’s business from the City of Desert Hot Springs based on Pineapple Park’s existing Conditional Use Permit, architect fees, and delivery of a building or greenhouse in vanilla shell condition with adequate electrical service and air conditioning units. Tenants shall be responsible for all interior build-out and equipment. However, if desired by a tenant, Pineapple Express may offer assistance with a full turn-key solution through a 3rd party equipment financier.
- Tenants shall execute a lease at a rental rate of $3.00 per square foot per month for greenhouse space and $6.00 per square for modular building space, commencing upon approval of permitting by the City of Desert Hot Springs and delivery of the rental in vanilla shell condition. Three of the first four months’ rent is fully abated (three months of zero rent after first month). This allows for sixty days for tenant improvements, installation of lights, etc., followed by sixty days of cultivation commencement. Should California legalize marijuana for recreational purposes, then on the first day of the calendar month following the effective date of the law, the rent rate shall increase to $4.00 per square foot for the greenhouse rental and $8.00 per square foot for the modular building.
- The leases shall be subject to a fixed five-year term with additional option periods available to the tenant.
- Although the Company does not anticipate that the price of wholesale products will diminish over time, both greenhouse and modular building leases shall have clauses that may reduce the price of rent based on market conditions and comparable leases present in the industry during the prior 12-month period.
“One organization has just signed on to lease two of the greenhouses and we look forward to signing up a couple more modular building tenants this week,” stated Matthew Feinstein CEO at Pineapple Express. “We received over 70 prospective tenant inquiries in the last few weeks since announcing our “Pineapple Park” project. This venture is an important undertaking for our company and we will take our time in the process of screening and vetting potential tenants. We must select only the most qualified and reputable organizations to fill these coveted vacancies.”
Company executives were proud that the City’s initiatives and its CEO Matthew Feinstein were positively featured in The Sacramento Bee Newspaper.
Theresa Flynt, VP of Business Development, added, “We couldn’t be more excited about our opportunities and rapid growth. Time is well spent building strong partnerships for a solid future in the cannabis space.”
The Sacramento Bee article can be found in the link below:
About Pineapple Express
Headquartered in Los Angeles, CA, Pineapple Express is a publicly traded company that invests in, expands, and brands existing and newly established canna-businesses through expert consulting and cutting-edge technology. We provide capital to our canna-business clientele, lease real properties to canna-businesses, and provide consulting and technology to operators within the cannabis industry. We intend to create a nationally branded chain of company-owned cannabis retail stores under the “Pineapple Express” name, as soon as federal laws allow. As long as cannabis remains federally illegal, our operations will be limited to consulting, product licensing, leasing to and investing in existing and new canna-businesses, selling industry specific technology and branding/retail concept support services. Home to some of the most experienced and well-connected minds in the business, Pineapple Express is at the forefront of the legal cannabis industry.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business, including that we have a limited operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. More detailed information about the Company is available at www.otcmarkets.com/stock/PNPL/quote. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
CEO / Chairman / Co-Founder
Pineapple Express, Inc.
1901 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Investor Relations Contact:
Scott Arnold CorProminence LLC
Garden City, NY 11530