Aug 31, 2015
Innovative Market Strategy Is Unparalleled in the Real Estate and Agriculture Industries
FT WORTH, TX / ACCESSWIRE / August 31, 2015 / Cherubim Interests Inc. (CHIT) (the “Company”), a development-stage alternative construction and real estate development company, today issues its stated business objectives specific to its recent entry into the controlled environment agriculture sector.
Cherubim’s primary focus is within the alternative construction, real estate development, and controlled environment agriculture sectors, into which the Company recently entered via acquisition of an exclusive worldwide license for the deployment of a proprietary plant cultivation technology.
Leveraging this exclusive license, and complementary to the operations of its wholly owned subsidiary, BudCube Cultivation Systems USA (“BCS”), Cherubim plans to construct, deploy and lease scalable cultivation facilities for commercial applications.
As the Company pursues existing and future market opportunities in this sector, Cherubim is positioned to take advantage of increasing demand for grow space to accommodate cannabis and other plant species, and will primarily focus on real estate acquisition and development of single, multi-family and commercial rental properties, and portable, scalable plant cultivation facilities.
MINI-STORAGE BUSINESS MODEL
Cherubim’s business model is similar to that of mini-storage companies by leasing secured square footage to individuals and corporations who need it. The company however has a hybrid format in which it will be offering both single tenant or “macro solutions” as well as the traditional multi-tenant or “micro solutions” as its platform.
Single Tenant “Micro” Application: Cherubim Interests will enters into an agreement whereby it will provide a total cultivation solution to a sole tenant. The company will acquire and develop the land required and deploy a “macro” solution to square footage specifications required by that tenant.
Multi-Tenant “Macro” Application: Cherubim Interests will select various land positions across the United States and develop and open select secured locations where multiple tenants can lease “micro” solutions to individuals. Each location will have varying sizes based on market research relative to geographical area.
Specific to Cherubim’s interests, the industrial real estate market in Colorado is booming as pot merchants scramble to find ample warehouse space to house their legal cannabis cultivation. Demand for grow space far outweighs vacant space, driving leasing rates to $17 per square foot or more in Denver – roughly quadruple average industrial space rates of $4.74 per square foot. Demand is expected to climb as Colorado state budget officials project recreational pot sales of $613 million over the next year, up more than 50 percent from previous projections.
“Even though we will first market test leasing units in the legal cannabis industry, there are many other practical applications for this technology,” stated Cherubim CEO Patrick Johnson. “Across the globe, massive food shortages exist due to extreme drought conditions and this application will serve this market niche as well in the future. As we continue to build and prove out our leasing platform, we will at a later time be able to offer the same solution for individuals and corporations who seek to grow their own produce, with so many issues surrounding concerns about produce our grocers are currently selling to us.”
IMPORTANT DISCLOSURE: Cherubim Interests, Inc. (CHIT) and BudCube Cultivation Systems USA is planning execution of its stated business objectives in accordance with current understanding of State and Local Laws and Federal Enforcement Policies and Priorities as it relates to Marijuana (as outlined in the Justice Department’s Cole Memo dated August 29, 2013), and plan to proceed cautiously with respect to legal and compliance issues. Potential investors and shareholders are cautioned that (“CHIT”) will obtain advice of counsel prior to actualizing any portion of their business plan. Advice of counsel with regard to specific activities of (“CHIT”), Federal, State or Local legal action or changes in Federal Government Policy and/or State and Local Laws may adversely affect business operations and shareholder value.
About BudCube Cultivation Systems
BudCube Cultivation Systems USA (“BCS”) has developed a proprietary, fully portable and scalable, Controlled Environment Cultivation Technology that serves as a turnkey solution for cultivators of legal medical and recreational cannabis, as well as any other plant species. Coupled with a real estate development and property management business model, BudCube Cultivation Systems can position itself anywhere in the world where the cultivation of cannabis is legal.
BCS provides cultivation solutions for commercial application. It offers cultivators quick entry into a fast growing market at a price point that is very attractive when compared to the traditional construction and cultivation solution. BCS features a business model unparalleled in the industry and stands to benefit greatly as more and more market participants seek to gain entry into this sector.
For more information, visit www.budcube.com.
About Cherubim Interests, Inc.
Cherubim Interests specializes in alternative construction projects, as well as covering the entire spectrum of real estate development: due diligence, acquisition, planning, construction, renovation, and management; providing complete beginning-to-end development programs for mixed use, single, and multi-family projects and properties.
For more information, visit www.cherubiminterests.com.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, general economic or industry conditions, nationally and/or in the communities in which our company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our access to capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting our company’s operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
Cherubim Interests, Inc.
Patrick J. Johnson
Chief Executive Officer