Weekend Unlimited Industries Inc (CSE:POT) (OTCQB:WKULF) announced Friday that it has sold its facility in Wenatchee, Washington for US$400,000, which it plans to use to fund its operations in Oklahoma.
The company purchased the Washington facility in 2018, and it had yet to serve in any active operations. Weekend received US$300,000 when the property was transferred and will get the remaining US$100,000 in 12 monthly payments beginning in January 2021.
The purchasers plan to rent the facility to licensed cannabis producers who will formulate Weekend Unlimited products, the company said.
"The sale of our Washington facility comes at the right time when this capital can be used to further develop our growing operations in Oklahoma," CEO Chris Backus said in a statement. "The deal we've made still allows WKND! brands to have a footprint in Washington. We believe this is the best decision to continue to grow Weekend as a revenue generating company for our investors."
Additionally, Weekend executives and board members decided unanimously to redirect the 2020 operational budget from Northern Lights Organics in Canada to its revenue-generating Oklahoma outfit.
A recent surge in biomass production and a decrease in price, not to mention the fact that harvesting biomass is potentially riskier amid the coronavirus, made the decision clear, the company said.
"Weekend's management team strongly believes this is the most strategic decision we could make at this time," Backus said. "WKND! and Orchard Heights Cannabis brands are growing dramatically in Oklahoma and we believe our efforts and capital are best allocated to a proven business model that is earning Weekend growing and consistent profits. This decision is a strong positive for the company and we are very excited and optimistic about our growing footprint in Oklahoma."
Earlier this week, Weekend signed a letter of intent to acquire Ruby Mae’s LLC, a cannabis-infused edibles producer in the state.
"Strengthening our cash position, and re-allocating capital to Oklahoma, could not come at a better time given our recently announced letter of intent with Ruby Mae’s," Backus added. "We are simply making a methodical decision to move cash from a crop commodity asset with several uncertain factors, and place it into Oklahoma operations which is proven by its month-over-month revenue growth to have less risk and more upside".
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