SOURCE: CannaGrow Holdings, Inc.

August 21, 2015 06:30 ET

CannaGrow Holdings Announces All Pre-Construction Requirements Completed for Submission of Building Permit Applications

CENTENNIAL, CO--(Marketwired - Aug 21, 2015) - CannaGrow Holdings, Inc. (OTC PINK: CGRW) -- a Liaison and Consultant providing Turn-Key solutions to licensed Growers announces an update on the Colorado project.

Mr. Janovec, CannaGrow Holdings, CEO, comments, "There has been significant progress made on the NuGro Industries Colorado Buffalo Ranch Filing No. 5-Lot 61 project since the approval and issuance of the Conditional Use Permit (CUP) by the Huerfano County Board of County Commissioners on May 12, 2015. The CUP carried certain conditions which were required to be completed prior to the issuance of the building permits and the construction phase of the project.

The three most important and critical conditions of the CUP were the Bennett Roadway improvements, the drilling of a well on Lot 61, and the State approval of the Huerfano County Water Conservancy District's Supplemental Substitute Water Supply Plan (SSWSP) - Augmentation Plan.

1. The Bennett Roadway improvements were by far the largest condition in terms of time required for the completion and out-of-pocket expenses. The improvements required grading of approximately 2.4 miles of gravel roadway, placement of approximately 2,000 tons of base rock, and the placement of approximately 700 tons of Pitt-run rock for the three low water crossings. The Bennett Roadway improvements were completed in mid-July by a State licensed Grading Contractor and approved in late July by an agent of Huerfano County.

2. The water well was drilled to a depth of approximately 300 ft. and completed by a State licensed Drilling Contractor during the last week of July, 2015. The contractor has filed his logging information with the State for registration of completion and recording of the water well placement.

3. The State Dept. of Water Resources approved the Huerfano County Water Conservancy District (HCWCD) Supplemental Substitute Water Supply Plan (SSWSP) Augmentation Plan the week of August 10, 2015. This Plan will allow for the augmentation of the well that was drilled on NuGro Colorado Buffalo Ranch Filing No. 5-Lot 61. We are in the process of changing the classification of the well from a monitoring well to a commercial well which is a requirement under the State statues and anticipate that reclassification will be completed within seven (7) working days."

Janovec went on to say, "July and the first half of August have been a very busy time for the Colorado Buffalo Ranch Project. We have cleared major hurdles with the completion of the Bennett Roadway improvements, drilling of the water well on Lot 61, and the approval of the HCWCD-SSWSP-Augmentation plan. Once the monitoring well is reclassified as a commercial well with the State Dept. of Water Resources, the final construction drawings-plans (Site plans and architectural blueprints for the buildings) will be immediately submitted to Huerfano County Building dept. for the issuance of the Building Permits. Although the delays at the County and State Level have been a nuisance, the down time has allowed us to be fully prepared to hit the ground running once Huerfano County approves and issues the Building Permits

Phase I & II consists of site grading for the ingress & egress roadways, a 3200 sq. ft. head-works building, six 2300 sq. ft. hoop-houses for outdoor grows, an approximate 3,300 sq. ft. state-of-the-art Nexus Greenhouse that utilizes the most up to date technology for the growing of cannabis. The Nexus Greenhouse and the Olympia Head-house building will provide a premier work and growing facilities for an approved Licensed Grower's operations that will optimize all operations, from seed to sale.

CannaGrow Holdings, Inc., the Liaison and Representative for NuGro Industries, will continue in that capacity, working with the various Contractors and State/County Agencies, to see the Multi-Phased project through to an operational status. The completion of this Project will provide CannaGrow the basis to begin generating revenues from the licensed Growers sub-leasing the Turnkey Growing Facilities. CannaGrow has already received numerous inquiries from perspective tenants and we are also exploring additional business ventures in the area that could further enhance shareholder value."

The revised site plan, grading plan, and phasing plan that was submitted by NuGro Industries, the landowner and developer, can be viewed on our website at: http://cannagrowholdings.com.

About CannaGrow Holdings, Inc.:

CannaGrow Holdings, Inc. has entered the Medical/Recreational Cannabis Industry as a Lessor, Liaison, and Consultant to licensed Growers providing them with turnkey Growing Facilities in the State of Colorado. The Company intends to expand this business model within this industry as business opportunities evolve whereby providing for the highest return to its shareholders

CannaGrow Holdings, Inc. is currently working with a website designer to update its website to reflect the new business model in the very near future.

CannaGrow Holdings, Inc. does not and will not, until such time as Federal law allows, grow, harvest, distribute or sell marijuana or any substance that violate the laws of the United States of America.

CannaGrow Holdings, Inc. encourages the public to read the above information in conjunction with its year-end statement for December 31, 2014, and the quarterly statements filed in calendar year 2015, at www.otcmarkets.com.

The information contained in this press release may include forward-looking statements. Forward-looking statements usually contain the words "may," "could," "possibly," "feel," "estimate," "anticipate," "believe," "expect," or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its services, competition, limited service facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein.

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