MJ Holdings to Co-Develop Las Vegas Grow Facility

Las Vegas, NV, Sept. 05, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- MJ Holdings, Inc. (OTC Pink: MJNE) (the “Company”), a leader in the Nevada cannabis market, has entered into an agreement with Element NV, LLC (“Element”) to acquire a 49% interest in the Company’s wholly-owned subsidiary Red Earth, LLC (“Red Earth”) for $441,000 and $4,559,000 of additional capital contributions (the “Capital Contributions”) for infrastructure and operating expenses. Red Earth is the holder of a State of Nevada Marijuana Cultivation Facility License and City of Las Vegas Recreational Cultivation Facility Business License. The membership interest purchase agreement (the “MIPA”) entered into between the parties requires Element to deposit into a segregated execution fund (the “Execution Fund”) $3,559,000 of the Capital Contributions (the “First Tranche”) to be utilized for the improvement and build-out of the Company’s 17,000 sq. ft. Western Avenue leasehold located in Las Vegas, NV. The First Tranche is due within ten (10) days of the receipt by Red Earth of a special use permit (“SUP”) from the City of Las Vegas, allowing us to grow recreational marijuana at our Western Avenue facility. The Las Vegas City Council has set the matter for review and approval on October 8, 2019. Element, in conjunction with the Company, will jointly manage and operate the facility upon completion. The MIPA also requires Element to make a final deposit of the Capital Contributions into the Execution Fund in the amount of $1,000,000 (the “Second Tranche”). The Second Tranche is due between 90 days and 180 days after the issuance of the SUP for the on-going maintenance and operating expenses of the facility. Additionally, Element has a first refusal right to fund and build a 40,000 sq. ft. indoor cultivation facility at the Company’s Amargosa Valley farm, or other mutually agreeable location, the terms of which are to be negotiated in good faith upon the exercise of any rights granted to Element in the MIPA.