Pervasip Raises $2.5 Million in Non-Dilutive Capital
Following the 2022 shareholder letter and cultivation upgrade announcements, Pervasip raises $2.5 million in non-dilutive capital from Active and a group of investors, adding to the $1.5 million already available in equipment financing for building a state of the art cultivation facility
“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" George Jordan, CFO & COO
SEATTLE, WASHINGTON, JANUARY 13, 2022
Pervasip Corp. (OTC: 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 facility 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.
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