Bloomberg Weed Index component MJ Holdings, Inc. (OTCQB:MJNE) said Tuesday that it entered a definitive agreement to acquire Red Earth LLC, a holder of a provisional license to grow cannabis in Las Vegas, Nevada. No terms for the acquisition were disclosed, but it was stated that the transaction is expected to be completed this quarter.
Effectively, the merger will give MJ Holdings some substance to its operations described simply as developing various technologies and healthcare solutions. The company previuosly owned and leased real estate to licensed operators in the regulated cannabis industry, operations that were divested last year after a failure to scale. It further is developing desktop and mobile social, meet-up and health and wellness applications with an emphasis on the cannabis space. The company has had no news since June 11, 2015, according to OTC Markets, and its listed website fails to open. Current with its SEC filings, MJ Holdings showed no revenue and a net loss of $246,657 for the quarter ended June 30, 2017.
Paris Balaouras, Red Earth's manager, has now been appointed to the roles of chief executive, replacing Adam Laufer, and chairman of the board of MJ Holdings. Balaouras said that he believes Las Vegas, which just legalized recreational marijuana this year, is the perfect hub to build brands and brand extensions to capitalize on the expected swell of agritourism in Sin City.
MJNE shareholders will likely now have their ears perked up listening for more details on the planned business model.
Shares of the thinly-traded stock climbed 14.1% in Tuesday trading to close at 97 cents.
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