Kings Garden Enters Joint Venture To Fund New Grow Facility Expanding Footprint In Coachella Valley - Michael King

Kings Garden Enters Joint Venture To Fund New Grow Facility Expanding Footprint In Coachella Valley

New Operation to Meet Growing Consumer Demand for Top-Ranking Cannabis Brand


CATHEDRAL CITY, Calif.Jan. 19, 2021 /PRNewswire/ — Today, Kings Garden, the original and largest cannabis cultivation, processing and manufacturing company in California announced a joint venture to fund a new 24K sq. ft. grow facility in Cathedral City, Ca.  The $9.5M deal supports the brand’s continued expansion in California – #1 cannabis market in the U.S. Construction on the facility is set to begin later this month, with a projected completion date of end of 2021.

Founded in the Coachella Valley, this new facility further cements Kings Gardens’ ties to the region, providing job opportunities to the local community.  With the continued explosive growth of the market, the Cathedral City operation will allow Kings Garden to meet the increased consumer demand for their top-ranked indoor flower, which is on track to be fully planted by the end of the year.  In order to meet this high demand, the new addition will feature 500 lights — adding 15% to Kings Garden’s current operation that includes 3,400 lights — allowing for more product and growth of specific strains to be carefully cultivated and cared for.

“We’re working to get this operation up and running and could not have done this without our dedicated partners,” said Michael King, co-founder, Kings Garden. “This facility represents another step in achieving our growth strategy of dominating the California market and fits perfectly into our long-term expansion plan.”

“From day one, our focus at Kings Garden has and continues to be on the superior quality of our product,” said Lauri Kibby, co-founder, Kings Garden. “We project the new facility to increase revenue 10% by the close of 2022.  Ultimately, continued expansion like this puts Kings Garden in a position to feed the larger national market as the federal legalization policies continue to be at the forefront of the conversation.”

The company has achieved steady growth most recently driven by the continued exclusive distribution of Kings Garden’s packaged product in California by Cresco Labs’ subsidiary Continuum – one of California’s largest full-service distribution businesses as well as extending its long-term real estate relationship with IIPR with an acquisition of a Southern California property comprised of approximately 200K sq. ft. of industrial space.

About Kings Garden:

Based in Coachella Valley, Kings Garden Inc. is California’s predominant cannabis cultivation, processing and manufacturing company, specializing in the world of premium grade boutique products at an unsurpassed commercial scale. Now one of the largest producers in California, Kings Garden prides itself on having organized a highly experienced cannabis management and operations team, while being fully compliant and licensed across the state of California.

From its inception, Kings Garden has held unwavering values focused on superior quality of end products, its team of management and employees who are considered family, giving back to local communities, and the advancement of the cannabis industry as a whole.

For more information, please visit the Kings Garden website at https://kingsgarden.com/.

SOURCE Kings Garden

Related Links

https://kingsgarden.com/


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Dem-Controlled Senate Could Usher In Cannabis Reform, Say Experts

Iris Dorbian – Contributor

With the Democrats gaining majority control of the U.S. Senate for the first time since 2010, some pundits in the legal cannabis community are eagerly weighing in on how this shift in leadership will impact the industry from a regulatory standpoint.

Justin Strekal, political director of NORML,  a Washington, D.C.-based nonprofit focused on marijuana legalization, feels Senator Chuck Schumer’s ascension to Majority Leader, is a boon for the industry because of the New York-based lawmaker’s vocal stance for the need of cannabis legislation. And, as both Georgia Senators-elect Jon Ossoff and Reverend Raphael Warnock are on the record about ending federal marijuana prohibition, the political climate does seem far more amenable to reform than it was previously.

Under the outgoing GOP Senate leadership, notable cannabis reform bills such as the MORE Act, which decriminalizes marijuana and the SAFE Banking Act, a measure that allows banks and other financial institutions to work with cannabis companies without incurring legal penalties, languished in the Senate after being approved in the House of Representatives. However, the impasse might ease as many Senators, which include Cory Booker (D-NJ) and Rob Wyden (D-OR), “have already pledged publicly to debate and advance legislation to end federal marijuana prohibition via descheduling,” noted Strekal.

Charles Gormally, co-chair of the cannabis law practice at Brach Eicher in Roseland, New Jersey, echoed Strekal’s sentiment. “The change of control in the United States Senate has created the possibility that the long-overdue rescheduling of cannabis may have a puncher’s chance of passing,” he said. “While cannabis liberalization polls as a bipartisan issue, Republican control of the Senate has been where reasonable proposals go to die.”

Dem-Controlled Senate Could Usher In Cannabis Reform, Say Experts 2 - Michael King

With the ascension of Senator Chuck Schumer to Senate Majority Leader, the debate toward cannabis reform is likely to shift markedly.

Gormally expressed hope that this shift in leadership would usher in a serious debate of cannabis reform bills as well as decriminalization and expungement of cannabis convictions. “Rescheduling of cannabis could also open up interstate marketplaces and inject the kind of efficiency of a marketplace that is sorely lacking now,” he continued.

Seasoned industry professionals, such as Michael King, co-founder and CEO of Kings Garden, a cannabis cultivation, processing and manufacturing company based in California’s Coachella Valley, are also feeling very upbeat with the imminent Democrat-controlled Senate. Like Gormally, King feels decriminalization may now be more likely. Yet King can’t help but sound a cautionary tone, adding that “any major legislation would need 60 votes in the upper chamber to avoid a filibuster.”

Still, he and other industry leaders are planning on being in the forefront when it comes to making their voices heard. “We will continue to advocate for licensed cannabis businesses to have access to banks and the U.S. stock market — opportunities that are dependent on federal lawmakers taking action to make cannabis legal on a national level,” said King.


Source: https://www.forbes.com

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Cannabis-industry investors are likely overestimating the odds for federal decriminalization - Michael King

Cannabis-industry investors ‘are likely overestimating the odds for federal decriminalization,’ analyst says

SAFE Banking Act seen as marijuana-related bill that’s most likely to pass Democratic-run U.S. Senate in the next 2 years.

While cannabis stocks have soared this week after Democratic wins in Georgia’s runoffs put that party in control of the U.S. Senate, one analyst has warned the rally looks overdone.

“Investors in cannabis producers, including Tilray (TLRY), Canopy Growth (CGC), and Aurora Cannabis (ACB), are likely overestimating the odds for federal decriminalization and descheduling along the lines of the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act that passed last month in the House,” said Beacon Policy Advisors analyst Charlotte Jenkins in a note Thursday.

“Passage of the MORE Act is unlikely even in a Democratic-controlled Senate because there is likely not enough Republican support to reach the requisite 60 votes to pass the MORE Act or Schumer’s similar legislation,” she added, referring to Democratic Sen. Chuck Schumer of New York, who is set to become the chamber’s majority leader.

The Senate’s filibuster rule requires 60 votes to end debate on most items and allows the minority party to stymie the majority’s efforts. With the Democratic victories in Georgia, the party will have 50 seats in the 100-seat chamber and only get control of it because a Democratic vice president, Kamala Harris, will cast tiebreaking votes.

Related: Maverick moderates the big winners in a divided U.S. Senate

And see: Democrats win Georgia’s runoff elections, giving their party control of U.S. Senate

Others who are tracking the prospects of cannabis-related legislation also are highlighting how getting to 60 votes would be key.

“The federal decriminalization of marijuana certainly becomes more likely with Democrats in control of the Senate, though any major legislation would need 60 votes in the upper chamber to avoid a filibuster,” said Michael King, co-founder and CEO of a California-based cannabis company, Kings Garden, in a statement.

Tilray TLRY, 6.29% has gained 40% this week, while Canopy Growth CGC, 5.04% WEED, 6.38% is up 24% and Aurora Cannabis ACB, 3.85% ACB, 5.13% also has jumped 24%.

The Cannabis ETF THCX, 4.43% has advanced 21% for the week, the ETFMG Alternative Harvest ETF MJ, 3.50% has added 18%, and Cronos Group CRON, 7.20% CRON, 8.63% has climbed 29%.


Source: https://www.marketwatch.com

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Cresco-Labs-Extends-Partnership-With-Top-selling-California-Cannabis-Brand-Kings-Garden - Michael King

Cresco Labs Extends Partnership With Top-selling California Cannabis Brand, Kings Garden

CHICAGO–(BUSINESS WIRE)–Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or “the Company”), one of the largest vertically integrated, multistate cannabis operators in the United States, announced today that it had entered into an extension of its distribution agreement (the “Agreement”) with the leading California-based cannabis brand Kings Garden Inc. (“Kings Garden”). Under the Agreement, Cresco’s subsidiary, Continuum, which is one of the largest full-service distribution businesses in the state, will continue to serve as the exclusive distributor of Kings Garden packaged products.

Kings Garden is a brand powerhouse in California, consistently ranked in the top five of flower and concentrate sales according to BDS Analytics. Continuum currently services nearly 600 of the top licensed retailers in California.

“California continues to be one of Cresco Labs’ core markets and a major contributor to our total revenue. We believe that our strength in a historically competitive state is attributed to our ability to offer an assortment of category-winning cannabis products across price points. Kings Garden compliments our strong California product portfolio allowing us to open new doors and increase velocity of current accounts,” said David Gacom, West Regional President of Cresco Labs.

“We’ve been working closely with the Cresco Labs team since their acquisition of Origin House and are thrilled to continue this partnership with today’s announcement,” said Michael King, Co-founder, Kings Garden. “We’re confident that the combination of our large-scale production, brand prowess and Continuum’s reach and exceptional distribution network will accelerate growth and increase market share for both parties and ensure that top-shelf Kings Garden product is available throughout the state of California.”

“As we continue to increase our cultivation footprint and annual production, it’s important we continue to grow our reach and hold our position as the number one indoor flower brand in the state of California,” said Charlie Kieley, Co-founder and Chief Operating Office, Kings Garden. “This can only be accomplished by continuing our distribution partnership with the state’s leading distribution company and platform.”

About Cresco Labs:

Cresco Labs is one of the largest vertically integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi, High Supply, Cresco Reserve, Good News, Wonder Wellness Co., FloraCal Farms and Mindy’s Chef Led Artisanal Edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco provides the industry’s first national comprehensive Social Equity and Educational Development (SEED) program designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at crescolabs.com.

About Kings Garden:

Based in Coachella Valley, Kings Garden Inc. is California’s predominant cannabis cultivation, processing and manufacturing company, specializing in the world of premium grade boutique products at an unsurpassed commercial scale. Now one of the largest producers in California, Kings Garden prides itself on having organized a highly experienced cannabis management and operations team, while being fully compliant and licensed across the state of California.

From its inception, Kings Garden has held unwavering values focused on superior quality of end products, its team of management and employees who are considered family, giving back to local communities, and the advancement of the cannabis industry as a whole.

For more information, please visit the Kings Garden website at https://kingsgarden.com/.

Forward Looking Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the company’s Annual Information Form dated April 28, 2020, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco’s shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.


Source: https://www.businesswire.com

Contacts

Media:
Jason Erkes, Cresco Labs
Chief Communications Officer
press@crescolabs.com

Investors:
Jake Graves
Senior Analyst, Investor Relations
investors@crescolabs.com

For general Cresco Labs inquiries:
312-929-0993
info@crescolabs.com

Media:
Pristina Alford for Kings Garden
253.307.8462
Pristina_alford@dkcnews.com

Courtney Greenberg for Kings Garden
917.439.8009
Courtney_Greenberg@dkcnews.com

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Innovative Industrial Properties Expands Long-Term Real Estate Partnership with Kings Garden with Acquisition of New California Property

Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it is extending its long-term real estate relationship with Kings Garden Inc. (Kings Garden), one of California’s top cannabis producers, with the acquisition of a Southern California property, which comprises approximately 192,000 square feet of industrial space.

The purchase price for the property was approximately $25.4 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at the property with Kings Garden, which intends to operate the property as a licensed cannabis cultivation and distribution facility upon completion of redevelopment. Kings Garden is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $25.0 million. Including this property, IIP leases six properties to Kings Garden, representing approximately 364,000 square feet of industrial space and a total commitment (including purchase prices and commitments to fund tenant improvements, but excluding transaction costs) of approximately $95.0 million.

“Kings Garden is one of the preeminent operators in California, and has pioneered industry best practices to develop the highest quality and consistency in its cannabis products,” said Paul Smithers, President and Chief Executive Officer of IIP. “We are thrilled to expand our long-term real estate partnership and support Kings Garden in significantly enhancing their capacity through redevelopment of this new facility to Kings Garden’s exacting environmental controls and specifications.”

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“IIP has been a powerful partner for us, enabling us to expand operations in the largest cannabis market in the world,” said Michael King, Chairman and CEO of Kings Garden. “Kings Garden prides itself on working with only the best and IIP is on a different level from all others, working collaboratively with us to facilitate a smooth transaction. Our partnership with IIP provides us with strategic, non-dilutive capital to continue to leverage our expertise as purveyors of world-class cannabis products, to further increase our reach to patients and customers throughout California. We expect this new facility to increase our production capacity by more than double, adding approximately 50,000 pounds of finished cannabis on an annual basis.”

According to BDS Analytics, through September 30, 2020, California generated over $2.6 billion in regulated cannabis sales, which is expected to grow to nearly $7.4 billion by 2025. Also according to Marijuana Business Daily, while only 168 of California’s 540 cities and counties allow for regulated cannabis companies to operate within their borders as of June, dozens of city and county initiatives were approved by voters this month, which are expected to further increase demand for regulated cannabis products throughout the state.

As of November 16, 2020, IIP owned 64 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 5.2 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment), which were 99.3% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.3 years. As of November 16, 2020, IIP had invested approximately $943.2 million in the aggregate (excluding transaction costs) and had committed an additional approximately $293.1 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. These statistics do not include up to approximately $3.2 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, as the tenant at that property may not elect to have IIP disburse those funds to the tenant and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant being in receivership and its ongoing default in its obligation to pay rent at that location.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.


About Kings Garden

Based in Coachella Valley, Kings Garden Inc. is California’s predominant cannabis cultivation, processing and manufacturing company, specializing in the world of premium grade boutique products at an unsurpassed commercial scale. Now one of the largest producers in California, Kings Garden prides itself on having organized highly experienced cannabis management and operations team, while being fully compliant and licensed across the state of California. From its inception, Kings Garden has held unwavering values focused on superior quality of end products, its team of management and employees who are considered family, giving back to local communities, and the advancement of the cannabis industry as a whole. For more information visit https://kingsgarden.com/ or https://www.instagram.com/kingsgarden.ca/.

Innovative Industrial Properties Forward-Looking Statements

This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding the lease and redevelopment of the California property, Kings Garden and the California regulated cannabis market, are forward-looking statements. When used in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com:
https://www.businesswire.com/news/home/20201116006098/en/

SOURCE: Innovative Industrial Properties, Inc.

Catherine Hastings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Innovative Industrial Properties, Inc.
(858) 997-3332

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Coachella Valley ‘King of Weed’ Grows Highest THC % Cannabis in California

Video Link: https://www.youtube.com/watch?v=TNwM-NgGc24

Welcome to the King of Weed. Kings Garden is California’s highest THC % cannabis grow operation based in Palm Springs (Coachella Valley).

“Kings Garden is the original Coachella Valley cannabis grow operation. What this means on the surface, is that we received the first licenses issued in both Cathedral City and Palm Springs. But what makes us truly who we are, runs much deeper. Our co-founder hails from one of Palm Springs’ founding families. Which means Kings Garden is more than a place we work. This is our home. A genuinely rare and revered corner of the world. A mecca which never ceases to inspire our creativity and drive our passion to create a family of cannabis strains unmatched in consistency, value – and above all – quality.”

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Kings Garden Announces Initiation of Regular Quarterly Dividend Backed by Record Financial Results in the First Half of 2020

Represents the first time in the history of the legal cannabis industry that a prominent brand has declared a regular cash dividend to shareholders1.

COACHELLA VALLEY, CA, June 20, 2020 /CNW/ – Kings Garden Inc (“Kings Garden” or the “Company”), one of the most prominent cannabis brands in the U.S. market, announced an industry-first today with the declaration of a regular quarterly dividend of US$1 million, to be paid at the end of Q2-2020 and quarterly thereafter.

“We are pleased to have the opportunity to pay a dividend to our shareholders based on our strong Q1 and Q2 performance,” said Michael King, Co-Founder and CEO. “Our shareholders trusted in our vision and have been our biggest supporters throughout the years. To our knowledge, this is a first for the legal cannabis industry and represents our commitment to take care of those who have shown continued faith in us.”

Co-Founder and CFO Lauri Kibby added, “Building a profitable cannabis company that would benefit the consumer and thereby benefit shareholders, has always been our number one objective. Despite the challenges of the COVID-19 pandemic, Kings Garden has maintained its focus on prudent capital allocation and as a result, achieved record-breaking sales in the first half of 2020.”

Based in Coachella Valley, Kings Garden is a leading cannabis cultivation, processing and manufacturing company, specializing in boutique products such as premium flower, concentrates, and vape cartridges. With a commitment to producing only top-shelf boutique products at commercial scale, Kings Garden has been able to maintain not only the integrity of its brand promise but consistently deliver a high-quality product that consumers have come to count on.

Charlie Kieley, Co-Founder and COO stated, “I would like to thank each and every one of our 180 Coachella Valley employees for their continuous commitment both to the Company’s vision and to translating that vision into results and great customer experiences every single day. I want to thank all of our retail partners and thanks to Chris CandelarioBobby AshtianiMatt Chiu and our entire staff for their remarkable efforts. Underpinning the quality and experience of the Kings Garden product is our team’s focus on relentless execution, continuous efficiency, and consistency. These principles have served us well so far and they are the same principles that will help us drive continued growth in the back half of 2020 and beyond.”

Ivan Talan, Co-Founder and Director of Marketing added, “One of the main problems for startup brands and even some of the more established brands in the industry today, is that they haven’t spent the time to weave the essence of cannabis culture into their corporate DNA. This lack of understanding is one of the primary reasons brands fail in this space. Success is not just about marketing, or sales, or service. Success is about delivering an entire experience, based on day one on what real consumers are actually looking and asking for.”

About Kings Garden

Kings Garden is California’s predominant cannabis cultivation, processing and manufacturing company, specializing in the world of top-shelf, boutique products at an unsurpassed commercial scale. In an emerging industry filled with many newcomers, Kings Garden prides itself on having organized highly experienced cannabis management and operations teams and being one of the largest and most profitable cannabis companies.


For more information, visit https://kingsgarden.com

Follow Kings Garden on
IG: @kingsgarden.ca
FB: facebook.com/KingsGardenInc/
LinkedIn: linkedin.com/company/kings-garden-inc
Twitter: @KingsGardenInc

Media contact: Info@KingsGardenInc.com

SOURCE Kings Garden, Inc.

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Innovative Industrial Properties Acquires California Property and Expands Long-Term Real Estate Partnership with Kings Garden

Innovative Industrial Properties Acquires California Property and Expands Long-Term Real Estate Partnership with Kings Garden

Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in southern California, which comprises approximately 70,000 square feet of industrial space.

The purchase price for the property was $17.5 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at the property with Kings Garden Inc., for continued operation as a licensed cannabis cultivation, manufacturing and distribution facility. Including this property, IIP leases five properties to Kings Garden, which includes the four-property industrial portfolio comprising an aggregate of approximately 102,000 square feet that IIP acquired in April of last year in southern California.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“Kings Garden has truly differentiated itself in the California market over the past five-plus years by its dedication to developing the highest quality cannabis products, which has translated to its consistent strong growth and success throughout that time,” said Paul Smithers, President and Chief Executive Officer of IIP. “We are thrilled to expand our long-term real estate partnership with a proven operator dedicated to excellence in product quality and operations.”

Kings Garden is licensed for cannabis cultivation, nursery, manufacturing, processing, delivery and distribution. With its advanced growing techniques, state-of-the-art facilities and research and development for the creation of new proprietary genetics, Kings Garden has developed a distinguishing brand in the southern California market, including botanicals, concentrates and accessories. Kings Garden has over 200 employees, and has raised approximately $55 million in capital since inception.

“We are excited to partner again with the IIP team on this transaction,” said Michael King, Chairman and Chief Executive Officer of Kings Garden. “IIP has been a great long-term real estate partner, providing flexible real estate solutions, being highly responsive and moving quickly to address our needs, while enabling us to retain full operational control over our state-of-the-art facilities, where we plan to continue to develop the highest quality cannabis products for our California customers in the many years to come.”

Similar to other states during this coronavirus health crisis, California authorities ordered all businesses that are not offering essential services to close operations for a period of time. However, regulated cannabis operators are permitted to continue selling both adult-use and medical-use cannabis products, and have been categorized as essential. Despite stay-at-home restrictions, according to Marijuana Business Daily, regulated adult-use cannabis sales in California were approximately $248 million for April, representing a 17% increase from one year ago. Also according to Marijuana Business Daily, while only 180 of California’s 482 municipalities and 29 of its 58 counties allow for regulated cannabis companies to operate within their borders, the current coronavirus pandemic and associated severe economic disruption are causing localities to reevaluate their positions on banning cannabis operations, in consideration of much-needed job creation and tax revenue.

As of May 12, 2020, IIP owned 56 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 4.1 million rentable square feet (including approximately 1.3 million rentable square feet under development/redevelopment), which were 99.2% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.0 years. As of May 12, 2020, IIP had invested approximately $739.7 million in the aggregate (excluding transaction costs) and had committed an additional approximately $140.6 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. These statistics do not include up to approximately $10.7 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Illinois properties, or approximately $23.8 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant being in receivership and its ongoing default in its obligation to pay rent at that location.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.

Innovative Industrial Properties Forward-Looking Statements

This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding the lease of the California property, Kings Garden and the California regulated cannabis market, are forward-looking statements. When used in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Source: https://www.businesswire.com

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Kings-Garden-California - Michael King

Kings Garden Inc on the Value of Brotherhood and the Direct Correlation Between the Team and Success of the Organization

Posted by Janet Harrison

The cannabis industry is notoriously one of the most competitive and cutthroat industries in the world. With a $10 billion market at stake, it is no surprise why some of the world’s leading companies and entrepreneurs are fighting for their share. Additionally, investors have started to allocate more of their resources towards cannabis, which has resulted in an additional inflow of over $14 billion globally in 2018 alone.

One of these titans, Kings Garden Inc was founded in California in 2015 by entrepreneurs Michael King and Charlie Kieley. Kings Garden has also launched their medical product line in January 2020.

During this rare opportunity, Kings Garden was nice enough to break down how they have grown this successful from the lens of both their founders and leadership team. We will hear how important culture has been and how a sense of brotherhood has built a team bond that resonates beyond the business itself.

  1. Michael and Charlie, can you please introduce us to them and explain how they help power the organization?

Sure, we pride ourselves on our people, our brotherhood and our relationships with each other. That is our backbone and we are only as strong as each other. That has been the foundation from day one that we continue to build on. It takes a certain kind of character and personality to fit our mold and its certainly not for everyone. We don’t take any shit or allow excuses. We are ruthless in our approach to execution, and we set extremely high expectations for everyone.

With that said, we have a great time doing what we do, we have fun messing around in and out of the office, and we all love what we do. Kings Garden is our family. Today we employ approximately 180 people and will be growing by approximately 15% over the next 3 months.

We have a tremendous amount of beautiful, strong and amazing women in Kings Garden like Lauri Kibby (CFO), Fiñe Score (Executive Assistant), Lauren Steffany (Field Marketing Director), Sarah Halpert (Social Media Manager), Olivia Bustillos (Manufacturing Manager), and many more. What they bring to the company and the importance of their roles is unmatched. We wouldn’t be where we are without them. We have so much love and respect for all of them.

Our leadership team and brotherhood consist of the following people, based on seniority:

Ivan Talan, VP of Marketing. Ivan was one of the first people to join Kings Garden as Ivan and Michael go back many years and are like family. Ivan invested his money along with his time and is an integral part of the organization. Ivan currently oversees sales, marketing, social media, and brand awareness. Ivan is a true warrior accomplishing herculean tasks which at times of assignment seem impossible. When the company was just launching and we needed to create a brand, Ivan took it upon himself to create the name and the logo. He told us he will handle it, and he did. As the production was starting to outpace the sales, we needed Ivan to create and run a sales team. Ivan, not having any experience in sales, took it upon himself to run all sales. He was so successful that the entire state of California got introduced to the Kings Garden brand practically overnight, going from a backlog of product to a complete shortage.

There is not a single task that Ivan has been asked to handle which he couldn’t, regardless of his experience with it. Ivan is one of the most reliable, honest and hardworking people we know. The saying “it’s not the size of the dog in the fight, it’s the size of the fight in the dog” describes Ivan perfectly. Ivan is an absolute animal who will not eat or sleep and will blast his 165lb body through concrete walls to get something done, because he said he would. Ivan is a brother, we love him, and respect him very much.

Jeffrey Fellbaum, VP of Distribution. Jeff was one of the first employees of Kings Garden who joined us during the construction of our very first facility. Jeff and Charlie go back years to when they used to work on construction projects together. When Jeff joined us we could not pay him very much due to a very tight budget, but we made Jeff a promise that we will take care of him. Not asking for anything and taking home almost nothing, Jeff believed in us and what we were doing. Jeff has always done and continues to do so much for the company.

Currently Jeff oversees all “product out” and all “money in”. Essentially, not a gram of any product goes out without Jeff’s approval and not a dollar comes in without Jeff signing off on it. We are blessed to have Jeff as he is one of the leaders of this organization who demands and receives perfection from everyone. With a tremendous amount of responsibility, Jeff’s attention to detail and respect earned through leadership is an example for so many. Jeff is a tremendous person and we are beyond blessed to have him as our brother.

Tyler Geld, Head of Cultivation. Tyler joined us in the second year of operations, quickly displaying incredible managerial and leadership skills. In no time, he became a manager of the facility in which he was operating. Very quickly he was promoted not so much by choice but by sheer will power to manage 4 facilities, then 6, and ultimately within 12 months, Tyler became Head of Cultivation. Tyler is an incredible person who commands people with his bravado. With Tyler at the helm, people perform or heads roll.

This should come as no surprise because Tyler, or as we like to call him “Cuz”, is also a tremendous athlete. Tyler’s dedication to sports via his purple belt in Jiu Jitsu and his passion for iron on the training grounds, is a huge reason for his success. Tyler pays tremendous attention to detail, has impeccable scheduling skills, internal drive to outperform every single time, and a burning desire to produce results. All of that can be seen in the flawless operational excellence and consistent high-quality product. We love this man as he is our youngest brother.

Cam Magallanes, VP of Processing and Packaging. Cam joined us roughly 2 months after Tyler and like Jeff, Cam and Charlie go way back to the days they used to work on farms together in Northern California. Cam started out as the processing (trim room) manager, as this has been his experience prior to joining Kings Garden. The processing room grew quickly over 3 years from 12 people, to its current size of 80. Cam is also in charge of the packaging division which consists of an additional 30 people. If that wasn’t enough, we also tasked Cam to oversee all manufacturing operations, thus adding an additional 20 people.

Cam’s larger than life personality and no bullshit approach to operations, results is precision like output of 600-700 lbs of finished flower on weekly basis. The finished flower then moves to the packaging department where it is packaged into 1/8th oz jars, 1/4 oz jars, pre-rolls, and grams. Excess biomass is transferred to the manufacturing facility where it is processed and packaged into shatter, budder, sugar, diamonds, and vape pens. Cam’s ability to manage multiple verticals, to know exactly what’s going on where, and to have his finger on the pulse the way that he does is unheard of not only in this industry, but in any industry. With Cam, the more we put on his plate, the tighter everything runs. Cam operates with a sense of pride and alpha male ability to lead, Cam dominates daily. Cam’s reliability allows us to sleep good at night knowing that big brother has everything on lock down.

Tommy Kieley, CMO. Tommy has been with Kings Garden for two and a half years and for his entire life with his brother Charlie. Tommy’s drive, relentless pursuit of perfection, and complete and utter dominance in anything he does and in everything he touches, has led to the way the company is perceived in the world. From design, to implementation of artwork, packaging, website, online store, more packaging, equipment, retail presence, and much more.

Tommy has dominated not only the CMO position, but also everything he touches and gets involved in. With complete disregard for the hours in the day or days in the week, Tommy just gets things done. His ability to dominate leaves everyone he is working with outside of Kings Garden crying for mercy. Mentally, Tommy is one of strongest people we know. Tommy is a huge inspiration to Kings Garden not only with his actions but also with his character, personality and work ethic. Tommy is a dear brother who we all love very much.

Gary LaSalle, VP of Operations. Gary joined us roughly two years ago, however, we have been working with Gary for close to three years prior to him joining the company full time. Gary has been our electrical contractor on all of the projects making sure that all of the nearly 250,000 sq ft of operations are in fact operating. Additionally, Gary’s and Charlie’s family go back a few generations. Gary is a beast and an executioner. Sometimes his laid-back personality confuses people, but if they bring out the beast, it’s unlikely that they will ever forget it.

If anything needs to be done in any part of the organization in regards to any matter, Gary will get it done. From design, to construction and operations, Gary is a terminator whose skill is unmatched and will literally do anything to make sure the task is finished. One of the most reliable people we have ever met in our lives, Gary is the definition of excellence. Gary is an incredible, gentle and kind person who gives the somewhat “rough” group of guys a warmer and gentler side. We all truly love this man and are blessed to have this brother in our family.

  1. Thanks for the introduction to your team Michael. Could we get feedback from your team on how this brotherhood has benefited them and Kings Garden?

Ivan: “I am living a dream every day of my life being surrounded by family at work. I am beyond blessed to be surrounded by these men, and the pleasure I get from working together is beyond words. I always knew we were going to do something great together, but what I am proud of the most are the relationships we have been able to establish and the team we have been able to build. We are in the cannabis industry, but really, none of that matters. It’s the people and what we are willing to do for each other.”

Jeff: “If you are able to do what you love, and love the people you are doing it with, it becomes a labor of love. If you are winning you can’t lose.”

Tyler: “The reason why this team is so special is not because of the level of experience each person holds. It is solely due to the amount of respect, love and most importantly trust we have for each other. Each of us has a great amount of responsibly and we are only as strong as our weakest link. Every day we are dealt a long list of tasks, issues and hurdles that we must come together as a team to conquer. We all have one goal in mind, which is to be the highest quality, extremely efficient and most consistent operators for not only one of the biggest cannabis companies in California but one of the best companies in the world.”

Cam: “Kings Garden has shown me you can choose your family as well as your friends. We breed winners here, everything is a thought-out process, and we do not rush to be like the other brands out there. This is where large-scale cannabis meets the top shelf.”

Tommy: “At its basic reduction, when everything Kings Garden has accomplished over the years is stripped away to reveal its core, it’s easy to see one simple truth; we are a family. You fight & you win for your family. This is what drives our tenacious appetite and enables us to succeed in our industry without fear or envy of others. We drive each other and we win for each other every day, without fail. We know who we are, where we come from, and what we believe in. We protect our roots.”

Gary: “The team that Mike and Charlie have assembled are the most loyal, hardworking and dedicated men and women that I have had the pleasure to work with. A true family environment.”

As you can see, we are a family with personal relationships dating back to before the start of the company. This has built a sense of responsibility, loyalty, and brotherhood. We rely on each other, push each other, and demand greatness from each other. The stronger each one of us is, the stronger the company is.


Source: https://startupfortune.com

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How Kings Garden Rose to the Top of the Cannabis Industry

As with any highly popular industry, the cannabis industry took the world by storm and created a high stakes opportunity that merged changing laws, a complicated black market, and legitimate entrepreneurs who looked to capture an explosive opportunity.

In California specifically, the industry has flourished for decades, as the state was at the forefront of both medicinal legal approval in 1996 and recreational approval in 2016 with Proposition 64. Simply put, the California cannabis market is the most competitive, promising, and renowned market in the world.

At the forefront of the cannabis market in California are entrepreneurs Michael King, Co-Founder, CEO and Chairman of Kings Garden, and Co-Founder and COO, Charlie Kieley. Kings Garden is one of the largest indoor cannabis producers in the state and have developed a strong brand presence on Instagram and in the market . With a dedicated focus on quality and working with state legislators, Kings Garden scaled into 250,000 sq ft of indoor operations consisting of indoor cultivation (3,400 flowering lights), manufacturing, processing, and distribution.

The company is currently producing around 40,000lbs of indoor flower to support their flower line consisting of 1/8th oz jars, 1/4 oz jars, pre-rolls, and grams. In addition to the premium flower line, Kings Garden has an ultra-successful connoisseur concentrate line consisting of shatter, budder, sugar, diamonds, and vape pens. In late 2019, Kings Garden launched their medical product line in a partnership with Avicanna to produce the highest quality medical products consisting of capsules, deep tissue gel, localized cream, tincture and spray. Additionally, a transdermal time release patch will be hitting the market at the end of Q2, 2020.

For those not familiar with the industry, an operation of this scale requires not only deep knowledge, but also financial resources and operational excellence. At this industrial scale, margins for error need to be extremely low, if non-existent. To paint the picture from a financial perspective, in 2019 Kings Garden hit $45 million in revenue (up 50% from 2018) with an EBITDA of over 20%. This is nearly three times higher than the average of the top five publicly traded cannabis companies in the world. Kings Garden is on its way to produce $75 million plus in 2020, and close to $100 million in 2021.

The Q&A below was shared by Michael King and Charlie Kieley, who gave more insight into their start in the industry as well as their success growing Kings Garden:

What was your inspiration behind Kings Garden? How did it all start?

It all started in 2014 with an idea two people had to do something great together in a state and in an industry that operated under some crazy laws and even crazier regulations. This was a time before public companies, public capital, $300+ million raises and everything else we see in the news today. Regardless of all that, the approach was very simple, if we do anything together, we have to do it right and we have to do it big. However, before we do anything, we have to build a model and a foundation which works, can be replicated, and expanded. At the time the goal was to start slow and to build up to a 100-light facility which can generate roughly $2mm gross per year. We knew that if we could build a successful 100-light operation, we could scale it. And so, it began.

After working with the local government and helping them with the licensing process, we were able to acquire one of the first licenses the city made available in 2015. Our first grow room was 16 lights in a 10,000 sq ft facility. We now operate 3,400 lights producing 40,000 pounds of cannabis per year in approximately 250,000 sq ft.

The first project launched 5 years ago to date, which we self-funded along with our partner Ivan Talan, VP of Marketing. Once we realized a working and a profitable model, we began expansion very quickly by locking down opportunities, funding them very quickly and getting operational as fast as possible. Speed was always the number one priority for us because we wanted to get ahead of our competition. We currently operate 12 buildings ranging from 9,000 – 70,000 sq ft, all of which are located in the Coachella Valley – Palm Springs and Cathedral City. The location was always by design. The goal was to have all of our facilities in a concentrated area as opposed to all over the state, thus providing us with operational efficiencies and one of the reasons for a great EBIDTA.

We have been very fortunate to have a lot of great investors who believed in the industry, in the company, and more importantly, who believed in us as people. We owe our investors everything because it was very difficult to raise money at a time of uncertainty and outdated regulations. That on top of a “non-for profit” and “medical” environment, it required complete trust and a vision to understand what a “for profit” business would be like if it actually happens. We raised funds on “per project” basis as the opportunities became available and the raises were anywhere between $2 and $12mm. In all, we were successful in raising $55mm over 3 years – all private through friends and family, and have been able to build Kings Garden together.

2. Given your experience in real estate and finance, do you have an advantage over competition that might lack “real world” business experience?

I don’t know if we have an “advantage” over others, I just know what we have. We never concerned ourselves with what anyone else is doing, why or how they are doing it. We knew what we had to and still have to do. A horse has blinders on in a race to stay focused and not to be distracted by anyone. Our approach is very similar. Of course, our respective backgrounds gave us a perfect partnership in that Charlie was able to bring an extensive cannabis operations expertise which he has been perfecting over the last 16 years.

With a degree in ornamental horticulture, Charlie’s experience included outdoor, greenhouse, indoor and retail operations. Michael brought his experience on Wall Street, specializing in finance, investments, private equity, real estate, and construction. Together it was a perfect partnership where we could rely on each other’s strengths in order to accomplish our goals. To this day, we operate very similarly – 95% of everything that goes on we are both involved in and make decisions on together, the other 5% we handle ourselves and trust each other to make the right decision.

3. What is the biggest challenge of scaling a cannabis operation as big as Kings Garden?

The biggest challenge has been not to lose sight of the details, to always strive for perfection, and to have the same standards if not higher at this scale. When it was one room or one facility with 1 employee it was easy. When you’re pushing 200 employees and an HR, compliance, and accounting departments, in addition to all the other stuff going, it’s easy to lose sight or stop paying attention to the little things. We just have to stay on top of all aspects of the operation and continue to settle for nothing but operational excellence with drive and determination. We are extremely involved in everything that happens in the business on daily basis and must continue to do so in order to be successful.

4. If you could change one thing about the industry, what would it be?

Nothing! We are where we are because of where the industry came from and because of where its going. The more challenges that get thrown at us the more of an opportunity we have to separate ourselves from the competition. Our approach to running our company is warfare. It’s not supposed to be easy and you’re not supposed to know what’s coming. You have to be prepared at all times for everything and anything that can happen. You have to be able to react instantly, adjust, and continue killing it.

If the industry didn’t have its challenges, we wouldn’t be here. We are excited about the new opportunities with the banking act and possible legalization but at the same time we are laser focused on stay ahead of everything that’s taking place now, and making sure that we are in the best position to take advantage of whatever happens next. We love challenges and difficulties. It keeps your mind sharp and allows you to stay focused.

5. What are your main goals within the next five years?

After 5 years of non-stop construction and expansion, we are 100% operational with all of the capital being reinvested back into the brand. We are laser focused on growing our company and our brand both in and outside of the state. We are currently in discussions reviewing both licensing and management opportunities in key states outside of California. We are very strategic in selecting the right relationships, right opportunities, and will continue to be methodical in everything we do.

We cannot forget what got us here and we can never get ahead of ourselves. As long as we are true to our principals and each other, the company will continue to be a leader in the cannabis industry in the future, whatever that future may bring. With most of the foundational work behind us, we are looking forward to building the company and the brand in the years to come. Kings Garden will continue to lead by example in everything we do.


https://www.thedrum.com

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