Decision translates into lower CAPEX to the Company
Update on Conditional Use Permit ("CUP")
TORONTO, Nov. 7, 2017 /CNW/ - High Hampton Holdings Corp. (CSE: HC) (FSE: 0HCN) ("High Hampton" or the "Company") is pleased to announce that Coachella City Council ("City Council") has approved, by unanimous vote, a revised proposal for the construction of greenhouses within the Coachella cultivation zone. In light of this positive news from City Council, High Hampton anticipates a significant reduction in the Company's future CAPEX financial obligations for the build out of its 10.8 acre property. The Company's engineering advisors, Infrastructure Engineers Inc., estimate a 30% build-out savings relative to the construction of indoor growing facilities, resulting in lowered financing requirements and higher return on investment for the project.
The Company, in collaboration with Infrastructure Engineers Inc., has revised the construction plans for the Conditional Use Permit ("CUP") application and is anticipating approval late December 2017 or early January 2018. The proposed cannabis facility will be comprised of a 167,916 square foot greenhouse area and 39,832 square foot production, extraction and administration facility in lieu of indoor growing facilities.
Prior to this decision, City Council had prohibited the construction of any greenhouses in the cultivation zone in favor of permanent, indoor growing facilities. This City Council decision shows significant support towards a growing cannabis industry in Coachella which is understood to bring full-time jobs to the area.
Newly announced strategic advisor Steve Selleck (see press release of November 2nd, 2017) will lead the project development of the Company's facility, and board member David E. Argudo will oversee the cannabis related aspects of the build out given his extensive knowledge of cannabis growing techniques. The Company will also be adding various renewable energy power sources to their facilities, with a minimum of 40 percent of renewables on the project. There are further steps to be completed before the Company can start construction of their new facility, and this will include engaging with a reputable greenhouse firm and receipt of its CUP.
Brendan Purdy, CEO, commented:
"The Company welcomes the news from Coachella's City Council approving the construction of greenhouses within the cultivation zone. This change in municipal ordinance considerably reduces the capital expenditure required to fund the project and reduces the timelines for final construction. Reducing cost and getting closer to revenue significantly increases the underlying economics of the project to the benefit of High Hampton's shareholders."
About High Hampton Holdings
High Hampton Holdings is a cannabis sector investment company focused on opportunities in California. The Company's wholly owned subsidiary, CoachellaGro Corp., is a California corporation focused on the development of a 10.8-acre property situated in the proposed cannabis industrial park located in Coachella, California. CoachellaGro is in the application process for a conditional use permit for development of a full-service production facility in order to serve third party state licensed medical marijuana operators. The City of Coachella has been progressive in setting up city ordinance that sets aside 90 acres within which will be a legal framework for the cultivation, production, extraction and transportation of cannabis. The complex is intended to contain all the necessary; security, infrastructure, equipment, labour and skilled management, supplies and ancillary services for a closed loop production process flow.
On behalf of the Board of Directors
High Hampton Holdings Corp.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the intention of the parties to complete the Acquisition and certain ancillary transactions contemplated thereby. These transactions are subject to a number of material risks, and there is no assurance that they will be completed on the terms or within the timeframes currently contemplated, or at all. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
All monetary references herein refer to Canadian dollars unless otherwise specified.
SOURCE High Hampton Holdings Corp.
For further information: 8 Wellington St. E. Mezzanine Level | Toronto, On | M5E 1C5 CSE: HC | www.HighHampton.com; Brendan Purdy, Chief Executive Officer, Telephone: (416) 276-4581, Email: firstname.lastname@example.org; Or Christian Scovenna, Director & VP Corporate Finance, Telephone: (416) 453-4708, Email: christian@HighHampton.com