MJ Holdings Inc (OTCMKTS:MJNE) announced recently that it managed to raise $5,565,000 USD as part of a private share buyback that took place towards the end of March, through which it repurchased 20 Million common shares.
The company initially issued the 20 million shares in December 2017 at around the time of its Red Earth LLC reverse merger. Red Earth has a marijuana cultivation license issued in Las Vegas. MJ Holdings CAO Terrence Tierney recently revealed that the company repurchased the shares from one of its largest shareholders. He also revealed that the shareholder agreed to sell back the shares at their initial cost. This allowed the firm to resell the shares without causing any dilution to other shareholders.
“In fact, the transaction is anti-dilutive as we have increased our cash on hand while reducing the number of issued and outstanding shares of our common stock,” stated Tierney.
MJ Holdings also expects to receive more funding as part of commitment from more shareholders and it plans to close the financing round on April 26. Some of the revenue will be used to build a three-acre facility located in Amargosa Valley. This will effectively boost the firm’s hybrid-mesh cultivation system to around 240,000 sq. ft, therefore doubling it.
MJ Holdings acquires 50-acre facility in Nye County, Nevada
MJ Holdings is determined to expand its operations in Nye County, Nevada and it recently enforced that plan by acquiring a 50-acre facility located in Amargosa valley that it plans to use as its genetics lab for hemp seeds. The company also plans to grow hemp on five acres which will be used for genetic studies. The studies are in line with the demand for more resilient hemp plants that are also of high quality.
The facility also comes with housing for the company employees that will be based there. MJ Holdings has been rapidly expanding its operations in Nevada in line with the fast-paced cannabis and hemp industry. The company is determined to develop strong hemp strains that will survive harsh climatic conditions such as deserts. Nevada is, therefore, one of the ideal places and it also represents more potential for hemp farmers in the state.’