Los Angeles-based cultivator Cannabis Strategic Ventures signed a memorandum of understanding with Devine Solutions to purchase 10% of an indoor cannabis cultivation facility in Sacramento, California.
According to a news release, Cannabis Strategic Ventures – which is known for its Nugs brand – intends to purchase part of the facility at a valuation of $15 million for the entire facility.
Cannabis Strategic Ventures also has an option to purchase an additional 41% of the facility, which would give the company a 51% stake at the present valuation.
The company said the roughly 15,600-square-foot facility has the potential to produce 7,000 pounds of cannabis flower per year.
“This deal represents the potential to sharply increase our premium cannabis production capacity and materially augment our status as an emerging leader in the vertically integrated California cannabis marketplace,” CEO Simon Yu said in a statement.
Shares of Cannabis Strategic Ventures trade on the over-the-counter markets as NUGS.