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Grapefruit USA, Inc. (OTCQB "GPFT") Announces One-Year Extension to its Private Label Cultivation Agreement with Prominent Southern California Cannabis Cultivator
Grapefruit USA, Inc. (OTCQB "GPFT") Announces One-Year Extension to its Private Label Cultivation Agreement with Prominent Southern California Cannabis Cultivator.
About this update from Grapefruit Usa Inc.
[{"type":"text","content":"LOS ANGELES & DESERT HOT SPRINGS, CA / ACCESSWIRE / August 18, 2020 / Grapefruit USA, Inc., ("GPFT", "Grapefruit" or the "Company") (OTCQB:GPFT) a California based cannabis distribution and manufacturing company, is announcing today that it has entered into a one-year extension of the previously-announced Private Label Cultivation Agreement (the "Agreement") entered into with a prominent indoor cannabis cultivator on January 28, 2020. This Cultivator utilizes a state of the art, indoor Canopy grow system in Los Angeles, California to produce premium grade cannabis flowers such as Gelato 33 and other exotic strains. Under the terms of the extension, the Cultivator will continue to allocate a predetermined portion of its annual crop to Grapefruit subject to the terms of the January 28, 2020 Agreement.With respect to Grapefruit's one-year extension, Bradley J. Yourist, Grapefruit CEO, stated, "This is a big step forward, after only nine months of operations with a premiere cultivator, Grapefruit has generated enough good will and credibility in the highly skeptical grow community to be able to negotiate a twelve-month extension of our agreement with our current master grower and its cultivation team. The cannabis market is experiencing a huge previously unseen demand for indoor-grown, high-grade, "exotic" cannabis flowers. In the face of this unprecedented demand, it was mission critical to extend our Agreement for at least another year and well before its expiration. The extension provides Grapefruit with certainty that its supply chain will be uninterrupted and insure a steady revenue stream. The Company anticipates annual revenue of approximately $3,000,000 affording a 20% margin from this Agreement alone.Grapefruit believes the newly extended Agreement as well as others under development will result in overall significantly higher revenues and margins from our distribution operations for the remainder of 2020 and early 2021. Margins will also be extended by the elimination of significant distribution operations one-time startup costs, non-recurring reorganization costs and elimination of legacy settlement costs. With this important step achieved, and our ongoing advances in the process of commercialization of the Company's patented disruptive Hourglass™ TH...