The agreement includes 5 plus acres of indoor greenhouses, outdoor farms, extraction capabilities and much more. The property was originally utilized in the flower business but was sold in 2019 to a now defunct hemp company for over $3.5M. The most recent tax assessment of the property was over $3M.
The purchase & sale agreement includes a 60-day due diligence period in which R2S will have time to conduct an additional appraisal on the property and asses to ensure it has all necessary zoning for the intended use. The DD will be led by Rusty Hendrickson and Michael J. French and will commence in March 2022.
The new property has the capabilities to grow a multitude of products including hemp, potted plants, vegetables and more, while also allowing hemp extraction and processing to produce our proprietary full spectrum formulates. The campus provides integrity and continuity to our supply chain, protects company IP, genetics, extraction processes, and the Root 2 Shelf tracking and traceability that our customers and distribution partners have come to lean on.
Rusty Hendrickson, Director of company infrastructure stated, “We have been in Paris for the past 4 years, and our relationships with contractors and local officials are great assets for the project. Our plan is to prioritize the setup of extraction and processing for faster revenue and where the demand is highest. We aim to start cultivation later this year. I am personally looking forward to working with the original owners of the property as they have over 40 years of experience in the facility.
Michael J. French, company CEO added, “I love the fact that we have cut our monthly facilities expense from over $250,000 down to a fraction of that cost, while maintaining all growing, extraction and processing capabilities in-house. There is a lot of work ahead, but I am very excited to move forward!”