Miami, FL – October 10, 2019 (EmergingGrowth.com NewsWire) — EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on Eco Allies, Inc. (OTC Pink: SVSN).
Eco Allies’s, Inc. (OTC Pink: SVSN) bold foray into the lucrative global hemp market—a market projected to hit $26.6 billion by 2025 according to a report by ResearchAndMarkets—is beginning to pay off.
With hemp as a base raw material, over 25,000 products can be produced and because cannabis containing the psychoactive ingredient THC, is illegal under U.S. Federal Law, Eco Allies, Inc. chose to focus only on legal cannabis, i.e., hemp.
Eco Allies, Inc. has formed Amalgamated Agricultural Properties Inc. (AAPI) (http://hempreit.biz) to establish a mission critical foundation for its venture into hemp with its planned registration, for a New York Stock Exchange (NYSE) listing, to be filed with the SEC for a $90 million Real Estate Investment Trust (REIT).
APPI’s purpose is to acquire farms and properties for growing hemp. AAPI will then be leasing its properties to Eco Allies, Inc.’s own hemp centric businesses, as well as to third party hemp growers.
Eco Allies, Inc. (OTC Pink: SVSN) currently owns 500,000 shares of AAPI’s 5 million authorized shares, with 90% of the remaining authorized shares (4,500,000 shares) to be sold for $20.00 per share yielding AAPI $90 million to complete letters of intent (LOI’s) that AAPI is procuring.
Eco Allies, Inc.’s shareholders will ultimately be the beneficial owners of 10% of AAPI’s 5 million shares then outstanding for $10 million in shareholder equity.
Further, “Innovative Industrial Properties Inc., (NYSE: IIPR) has demonstrated that a cannabisrelated REIT can be a success as its stock has grown dramatically in price from its IPO. Its management and founders reflect the rare expertise required to be successful in this business and our Farming Advisors, John Toth (member of the Eco Allies, Inc. Board of Directors), and Shad Sullivan (Member of the Climate Cure Board of Directors) are in the same league. Eco Allies, Inc. is another pioneer following the success of, Innovative Industrial Properties Inc., (NYSE: IIPR), Unlike IIPR however, Eco Allies, Inc. seeks to advance the legal cannabis REIT model to benefit AAPI, and Eco Allies, Inc. through its relationship with AAPI.” said Honour.
The AAPI REIT, of which Eco Allies, Inc. (OTC Pink: SVSN) is the current principal shareholder has already aroused sharp interest from Wall Street investors who are keen on venturing into the legal cannabis space.
In order to assist with the development of AAPI, Eco Allies, Inc. (OTC Pink: SVSN) has incorporated into its a “Who’s Who” of the hemp industry into its board of directors.
Wayne Hunton, CEO and Director of AAPI, is an expert in real estate and is a licensed real estate broker with a CRS designation. He has worked with property buyers, sellers, developers, and property managers on various large projects and also has experience with REIT’s gained over his extensive real estate career.
Hemp (AKA cannabis) is now legal under Federal law (U.S. Farm Bill of 2018).
Because cannabis containing the psychoactive ingredient THC, is illegal under U.S. Federal Law, Eco Allies, Inc. chose to focus only on legal cannabis, i.e., hemp. With hemp, as a base raw material, over 25,000 products can be produced.
AAPI will pay Las Vegas based Eco Allies, Inc.’s (OTC Pink: SVSN) management fees and provide Eco Allies, Inc. with long-term favorable lease rates for use of AAPI’s properties. Upon its registration with the NYSE, AAPI will be a fully reporting public company in the form of a legal Cannabis Real Estate Investment Trust (REIT) that issues periodic financial and operational disclosures.
Acreage is the Holy Grail
Among the many products made from hemp, CBD can generate as much as $180,000 (CAD)/$140,000 (USD) per acre. This is according to research based on the Canadian market, which research is more readily available because at this time, Canada has more progressive cannabis laws than the U.S. The chart below gives a detailed breakdown of the potential revenue from one acre of hemp.
APPI’s purpose is to acquire farms and properties for growing hemp. AAPI will then be leasing its properties to Eco Allies, Inc.’s own hemp centric businesses, as well to third party hemp growers. Eco Allies, Inc. has been assisting AAPI so it possesses a qualified team to operate successfully and cohesively with Eco Allies, Inc. AAPI’s roster of officers and directors reflects this was achieved.
You can view the full team here: http://www.hempreit.biz/
Clearly, acreage is the Holy Grail in hemp cultivation. Revenues are a direct function of how many acres that can be grown. But expanding controlled acreage is easier said than done. Farmland is increasingly expensive in the U.S. Prices have increased consistently since the early 1990s and even defied the 2008 financial crisis. This is according to analysis by The Motley Fool, and cited on USA TODAY.
But here again, Eco Allies, Inc.’s innovative strategy shines. Targeting Florida’s warm climate, allows 3 crops per year to be cultivated from the same acreage. The high cost of farmland presents a challenge to the vast majority of hemp cultivators as legal cannabis is still a development stage industry and the vast majority of companies in the space are currently not generating sufficient revenues or cash flows to purchase irrigated farmland.
The average price of U.S. farmland is currently around $2,728, according to the aforementioned Motley Fool analyst. Through the planned $90 million-dollar US REIT, Eco Allies, Inc. will be able to access a considerable amount of acreage. This translates into an opportunity to generate strong revenues long-term. This is not a typo, but a calculation based on the average revenue per acre of hemp can be $100,000+ for hemp.
U.S. farmland prices have increased consistently since early 1990s
Despite continued hype over progressive cannabis legislation coming to the U.S., growing Federally illegal psychoactive cannabis is an illegal business under U.S. Federal Law. That fact introduces challenges that are insurmountable when seeking capital from Wall Street, commercial banks, and investment banks operating within the U.S. financial system.
Unlike others, Eco Allies, Inc. (OTC Pink: SVSN) found a way to get the smart money into legal cannabis through a planned NYSE listed REIT that will lease land only for growing legal cannabis (i.e., hemp). Without resorting to shareholder-unfriendly financial acrobatics, this REIT would allow Eco Allies, Inc. to gain reduced cost access to substantial acreage of irrigated farmland for hemp cultivation and product manufacturing.
Eco Allies, Inc. CEO, Jack Honour, commented on how their ingenious strategy allows the Company to avoid share dilution because the need to raise capital has been effectively transferred to another entity.
“A REIT is designed to raise capital to acquire real estate. In this instance, AAPI can raise the cash it needs through a deal with a major Wall Street Firm to purchase farmland to grow hemp. The Eco Allies, Inc. strategy leverages conventional funding, expenditure reduction, and innovative generation of revenue, to produce, and then vastly increase legal cannabis cash flows for it and its shareholders,” commented Jack Honour, CEO of Eco Allies, Inc..
The Climate Cure Acquisition
“Eco Allies, Inc.’s recent acquisition of Climate Cure Capital Corporation added another thoroughbred to the Eco Allies, Inc. stable and furnishes Eco Allies, Inc. with the way to add a number of revenue generators to increase Company profits.” Stated Jack Honour Eco Allies, Inc. (OTC Pink: SVSN)
Eco Allies, Inc. acquired 100% of Climate Cure Capital Corporation’s stock in exchange for five million shares of Eco Allies, Inc. restricted common stock. Eco Allies, Inc.’s General Counsel, Arnold F. Sock, is a founder, officer, and board member of Climate Cure Capital Corporation.
Climate Cure Capital®, the recently acquired wholly owned subsidiary, is the result of more than 40 years of combined experience in project design, management, and implementation in GHG (Greenhouse Gas) reduction and renewable energy arenas. Our strategy is to identify specific opportunities to provide, emission reduction or energy efficiency opportunity in the early stages of a development. Climate Cure provides its innovative solutions and technologies while it directs and manages the necessary technical consultants and becomes the repository for all of a carbon related project’s data.
Climate Cure has an experienced management team.
You can view the full team here: http://climatecurecapital.com/
The Climate Cure Capital Corporation (CCCC) acquisition is another example of management’s determination to expand into eco-friendly businesses with socially positive impacts and strong earnings potential. Climate Cure Capital Corporation currently has over 295,000 environmental credits in its account. It provides environmental commodities services to produce and broker carbon offset credits, emissions offset credits, as well as other offset credits that finance pollution mitigation.
These credits have value. Depending on the market, the 295,000 credits held by Climate Cure Capital can be sold for between $10.00 and $14.00 each, providing $295,000 to $413.000 in cash proceeds. Eco Allies, Inc. will sell the credits to finance its ongoing progress to have AAPI’s $90 million REIT listed on the NYSE.
Climate Cure Capital Corporation (CCCC) has farmed and harvested its proprietary Paulownia trees for the Ortigalita Power Plant in California of which Climate Cure owns 30%. Climate Cure has in stock 5,000,000 seeds for these proprietary trees it developed through non-genetic modification. It will also be burning hemp chaff and hemp by-products to create green gas, electricity, and carbon and emission offset credits.
Our proprietary Paulownia Trees, according to WF Billy Barnwell, CEO of Climate Cure Capital Corporation and Eco Allies, Inc. Board of Directors member, grow to 2 feet high in 6 weeks after planting and 20 feet per year to a maximum of 60 feet in 3 years. Climate Cure’s proprietary Paulownia Tree can be harvested at any point after the first year (at 20 feet) and then used for biomass to produce energy, producing biochar (a soil amendment), phytoremediation (soil clean-up), coal supplanting (when processed for such), and because they are a carbon sink (breathing in CO2) they result in carbon and emission offset credits that are sold for additional revenue at the same time they produce revenue from their primary usage.
According to Philip Scalzo, (https://www.linkedin.com/in/philip-scalzo-731a5830/) who was instrumental in analyzing CCCC’s the Paulownia trees, and their potential market value to Eco Allies, Inc. concluded that a 2,000 lb. tree is 70% water and 30% dry matter. CCCC is expected to recover 94% or 564 lbs. of the dry matter, (which will still contain 10% moisture) and sell it to a customer for $140.00 per ton, or $43.86 for each tree.
Eco Allies, Inc.’s now wholly owned subsidiary CCCC has 5,000,000 seeds in stock of which it expects to yield over $200,000,000.
Climate Cure’s other plans include, mitigating dairy farm excrement, a major source of methane pollution using its Tree to mix with to form a more cleaner burning pellet fuel, thus reducing methane pollution through a process that combines the trees with the excrement to provide the fuel pellets.
Last but not least, it will produce biochar. Biochar is a type of charcoal that is a soil amendment and is a stable solid, rich in carbon, and can endure in soil for thousands of years to enhance the soil for better growing properties for extensive periods. Like most charcoal, biochar is made from biomass via pyrolysis and is now in great demand with hemp farmers.
Just like humans and animals require and breath oxygen, hemp breathes carbon dioxide (a greenhouse gas that produces global warming). Mother nature provides the source of what plants and animals need to breath to co-exist and exist. Hemp provides a particularly effective method to reduce greenhouse gases simply from growing it and in other ways (See later.).
Industrial hemp has been scientifically proven to absorb more carbon dioxide per hectare than any forest or commercial crop and is therefore the ideal carbon sink. In addition, the carbon dioxide is permanently bonded within the fiber that is used for anything from textiles to paper and as a building material. Hemp consumes large amounts of carbon dioxide, making growing it an ideal source of carbon offset credits. Then include the fact that hemp has the ability to grow to maturity, depending on the climate grown in, anywhere from one to three, and even four times a year on the same land. These can produce carbon offset credits. These credits can be worth $10-14/ton for each offset credit. A hectare of hemp can breathe in about 22 tons of carbon dioxide (expelling human and animal breathable oxygen in the process) per crop. So, if there are two or three crops, the amount removed is increased accordingly and the amount of credits possible increases accordingly.
Methane is a dangerous greenhouse gas. It is generated in vast amounts by raising cattle, hogs, and chickens. When mixed with cellulosic material the combination can produce a clean burning fuel and eliminate the methane from leaching into the air and ground, untreated, from effluent ponds found anywhere animals are raised in abundance. The emission credits resulting can be worth far, far more than carbon credits.
These credits result from the growth of hemp already being grown for whatever products it is to produce. As such it is an additional revenue source through from the same activity. It requires no additional cost or action other than for paperwork, tracking, and brokering costs. These are limited costs. The majority of the sales proceeds therefrom thereby drops to the bottom line.
There are other methodologies that Climate Cure brings to the Company to produce revenue, including especially from biochar production (biochar is a valuable soil amendment. Biochar made from Climate Cure’s proprietary Paulownia trees has been chemically analyzed and shown to be in the top tier of biochar because of its carbon content and low and trace negative chemical compound components. It can be used in products from gas masks to algae bloom treatments). Setting up hemp carbon and emission credits programs for others and brokering those credits, as well as offering advisory services for credits are just more ways that Climate Cure can generate revenue and do good for the environment.
Because of the foregoing, Climate Cure can add a significant amount to the Company’s bottom line. Climate Care can therefore now have a significant upside effect of shareholder value.
CannaFlora Farms, Inc. – The Latest Subsidiary
Eco Allies, Inc. recently formed CannaFlora Farms, Inc. It also has an incredible business model and itself could witness exponential growth in revenue in coming years. CannaFlora will provide various services to the AAPI REIT including finding and assisting with acquisition of hemp suitable farmland. In addition, it will handle product aspects and help with sale of high quality and very valuable hemp seeds, in addition to handling other operational activities involved in the hemp product manufacturing. CannaFlora Farms has an important role from management of hemp growing, to turning hemp into valuable products, and directly generating its own significant revenue and income through its own operations. Going forward, CannaFlora plans to syndicate its industrial hemp farming business to farmers on a profit-sharing basis. This will allow it to access even more acreage and gain the goodwill of the local community, which is highly critical in any agricultural business. As a key aspect of the Canna Flora mission, CannaFlora and its parent company will be able to access farmland without being put in financial jeopardy, a feat that very few cannabis players have achieved.
Doing Good While Doing Well
“An interesting thing about our business is that, other than creating shareholder value, the
company values our philosophy of doing good while doing well,” noted Honour.
Eco Allies, Inc. has created a roadmap for its future. It has changed its focus so that it can enhance shareholder value. It has assembled a team of experts in this new focus to be able to successfully execute on its new focus. The Company will retain its valuable intellectual property and put into a newly formed subsidiary. It will also retain the REZN8 subsidiary to create videos and other promotional media to promote the Company’s hemp operations.
Jack Honour, CEO, Eco Allies, Inc. (OTC Pink: SVSN) stated “Eco Allies, Inc., which has a 100% ownership stake in CannaFlora Farms and Climate Cure Capital is grossly undervalued in light of its current market cap of around $9.81 million versus its subsidiaries’ potential to rake in revenues and income in the millions in the near term of operation without land acquisition costs, debt financing costs, or stock dilution.”
Mr. Honour continued, “Eco Allies, Inc.s potential to become a billion-dollar company from revenue and income produced by the AAPI REIT, and its subsidiaries cannot be downplayed. REITS require that 90% of their income be distributed to their shareholders, and as a significant shareholder in AAPI, Eco Allies, Inc. (OTC Pink: SVSN) could look forward to significant income from its AAPI holdings (as well as the potential benefit of holding AAPI stock that may significantly increase in value). Eco Allies, Inc. has a stable of diversified companies to establish of tremendous shareholder value.”
“Talent acquisition and retention is at the heart of Eco Allies, Inc.’s strategy. While we love working with people who are genuinely passionate about the possibilities our business model offers, and we put an even greater premium on skill and competence. Our talent pool is premier quality,” concluded Honour.
When investors look at the amazing success story of Innovative Industrial Properties Inc. (NYSE: IIPR) they often get mesmerized by the stock chart and forget that successful companies are built by talented executives like , William Barnwell, James Gaspard (Eco Allies, Inc. Board of Directors member and biochar [patent holder and expert), Scientist John Toth (CEO of CannaFlora, Inc. and agriculture expert), Shad Sullivan (patent holder and farming expert), Arnold F. Sock (LL.M), Esq., T.J. Culbertson (real estate expert and Eco Allies, Inc. Board of Directors Member), Wayne Hunton, CRS (CEO and Director of AAPI), Ron Watson (Eco Allies, Inc. Board of Directors member and hemp consultant), Glenn Kirk, CPA, and Jack Honour, who can all successfully execute strategy.
Adding to this critical resource are the capabilities and capacities of the wholly owned current and future subsidiaries of Eco Allies, Inc.. These companies will grow, maintain and expand revenue and income producing activities. Being “just a REIT,” Innovative Industrial Properties, Inc. (NYSE: IIPR), cannot take advantage of income generating capabilities available to Eco Allies, Inc. through its collaborative multi-faceted operations concept and its ability to execute it.
Once the AAPI REIT draws much deserved attention to Eco Allies, Inc. and its difference from just being associated with an “ordinary REIT,” the upside could be tremendous – Possibly in the six to nine figures” Concluded Jack Honour, CEO Eco Allies, Inc.
Eco Allies, Inc.
OTC Pink: SVSN
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