Seattle, Washington--(Newsfile Corp. - January 13, 2022) - Pervasip Corp. (OTC Pink: PVSP) ("Pervasip" or the "Company"), a developer of companies and technologies in high value emerging markets, and its subsidiaries, Artizen Corporation ("Artizen") and Zen Asset Management LLC ("ZAM"), today announced the execution of agreements with Active Investment Co LLC ("Active") and a group of investors to provide ZAM with $2.5 million in non-dilutive financing, which ZAM will use to develop and build out a next generation cultivation facility in Tacoma, Washington.
Active and a group of investors are funding ZAM's launch of the buildout of 24,000 square feet of cultivation and 9,000 square feet of processing capacity, which ZAM will manage for three new ZAM customers. The new cultivation facility is projected to produce 500 pounds per month of high quality cannabis flower and is scheduled for completion and launch by end of 2022. Pervasip management estimates the additional output to be initially valued at about $6 million in annualized revenues, with pre-tax operating income margins exceeding 10%.
Neal Mulnick, Active's President said that "ZAM has been a great partner and tenant since 2016, and we are excited about the opportunity to partner on the development of this historic site. This building has been in our family since the early 1970s. We cannot think of a better group than ZAM to partner with and realize their next phase of development for this asset. Active is a family run investment company focused on West Coast commercial real estate and venture investments, and we look forward to working with the ZAM team on realizing this project."
With three new customers for ZAM, the building will host a small woman-owned processor developing very unique flower and edible brands, a new distribution company focused on taking the Artizen brand to market in Washington State, and a state of the art cultivation facuility run by an experienced group of cultivators.
"The $2.5 million in capital will be complemented by $1.5 million in equipment leasing and another $1 million in garden equipment already owned by ZAM," said George Jordan, Pervasip's Chief Financial Officer. "I am encouraged by the speed and terms for this buildout. A non-dilutive financing of this magnitude speaks to the trust each of the funding partners has placed in us. We're excited for the impact of this project on our revenue, earnings, and growth plans for 2022."
Pervasip Corporation
Pervasip Corp., a developer of companies and technologies in high value emerging markets, owns Artizen Corporation and its subsidiary, Zen Asset Management LLC, a diversified asset management company founded to acquire, develop, and support companies and technologies in the cannabis industry. ZAM's existing clients operate four licensed cannabis cultivation and one processing facility in Washington. Most of the biomass produced by these independent cultivators has been sold historically under the Artizen™ brand, including all-time top selling products in flower in Washington state. Additional information on Artizen-branded products is available online at www.artizencannabis.com. Pervasip additionally owns 5% of KRTL Biotech, Inc., a developer of biotechnologies with a focus on pharmaceutical applications of cannabinol and psilocybin. Additional information on KRTL is available online at www.krtlbiotech.com. Additional information on Pervasip can be found at www.pervasip.net.
Active Investment Co LLC
Active is a family run investment company focused on West Coast commercial real estate and venture investments. Active and Clover Capital LLC are family owned sister companies that own and manage a substantial commercial real estate portfolio in the Puget Sound. The Union Street building was originally constructed in 1946 and the building served a variety of purposes through the 40's, 50's, 60's and 70's. Over the years the Tacoma Rockets played hockey there, and when the Arena wasn't used for that it served as an event hall hosting large revivals, professional wrestling and boxing matches, and numerous other sporting events. Built by Sam Bergeson Construction it boasted the widest trusses ever built in this area at 160 feet, second only to the Boeing Company hangar which spanned 165 feet.
Forward-Looking Statements
This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives, or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as may, would, could, will, likely, except, anticipate, believe, intend, plan, forecast, project, estimate, outlook, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company's business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company's ability to secure financing on reasonable terms. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company's periodic disclosure statements. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
For further information, please contact:
T: 855-464-2535, Extension 1
E: info@pervasip.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/110010
