LOS ANGELES, CA--(Marketwired - Nov 7, 2016) - Agritek Holdings, Inc. (OTC PINK: AGTK), a leader in compassionate care technology and agricultural solutions for the recreational cannabis industry, today announced that the Company has executed a Letter of Intent and Agreement for the acquisition of one hundred per cent (100%) of the stock and ownership of "Sterling Classic Compassion," a two (2) year old tax reporting non-profit qualifying for the sale of medical marijuana within the state of California. The Company believes that Sterling can qualify for a recreational license within the state of California if Prop 64 were to pass in the general election Tuesday November 8th. Agritek Holdings based on state guidelines to be determined, could participate in the ownership and sale of wellness products within the state similar to rules set up and approved for public companies in Washington State, Nevada and Oregon. The all stock transaction and agreement was approved by the Board of Directors of both Agritek Holdings, Inc. and Sterling Classic Compassion in which Agritek would transfer five million restricted shares upon completion of the transfer of one hundred per cent of the assets and stock of Sterling. Sterling Classic Compassion, a non-profit based in Desert Hot Springs, California, has recently become an established area for favorable cannabis legislation within the state. The 2 year old company now acquired by Agritek Holdings qualifies as a legal entity for medical sales or recreational cultivation if passed by legislation within the state. Sterling has never had physical retail operations to date, but is a clean entity with two years state taxes filed and will be put forth as an immediate candidate for recreational license after the favorable vote. Sterling will be a wholly owned subsidiary of Agritek Holdings with California residents acting as officers and an independent CPA within the state to be announced next week who both will be joining the Agritek advisory board as acting officers of the subsidiary.
"We are one day away from the vote in California as recreational state through a majority vote on Prop 64. The acquisition of Sterling Classic Compassion could become one of the most valuable assets in our portfolio for several reasons. First, owning a two year old aged non-profit set up as a collective for the legal sale of cannabis to patients in California with taxes properly filed but never operating as a retail operation to date, we could be one of the first viable candidates once guidelines for recreational licenses are set forth by the state. Essentially, every California collective and dispensary presently operating is unfortunately operating illegally or in grey areas without set state guidelines. Sterling would have a clean slate and fast track to proper licensing," stated CEO for Agritek Holdings B. Michael Friedman.
"On the other hand, even if larger, more established collectives were to be considered for recreational guidelines as existing operations, they would still face much higher scrutiny and time involved going through books and records of sales and patient records, and we would still have our place in line being established and tax reporting for two years. This tremendous acquisition and asset on our books if properly guided through legislation, and meeting eligibility requirements could in my opinion, catapult Agritek Holdings to a whole new level," further added Friedman.
California, Prop 64
A recent article from Forbes magazine stated, "California is the biggest potential market in the country and the passage of Prop 64 'will create an explosion in the value of compliant medical marijuana dispensary and cultivation licenses in good standing,' said Steve Gormley, CEO of Seventh Point LLC, a private equity fund acquiring those kinds of assets throughout Los Angeles, California. 'That's the precedent we've seen in Colorado, Oregon, Washington State, Alaska and D.C.,' he said. 'I have no reason to believe California will be any different.'" Read the full Forbes article here:
About Agritek Holdings, Inc.
Agritek Holdings, Inc., a pioneer within the medicinal marijuana space, provides innovative technology and agricultural solutions and seeks to be the leader in Compassionate Care Technology for the recreational cannabis industry. Agritek Holdings, Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act, nor does it intend to do so in the future.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein.