Vancouver, British Columbia / TheNewswire / June 9, 2015 – – Chlormet Technologies Inc. (“Chlormet” or the “Company”) (CSE: PUF) (Frankfurt: HR2P) is pleased to announce that it has completed the purchase of property located near Ferndale, Whatcom County, Washington State (See news releases dated Nov. 4, 2014 and May 28, 2015) and is now the registered owner by way of its subsidiary PacCan Industries LLC.
The property is 9.7 acres in size and has multiple buildings located on it. The largest building is approximately 13,000 square feet (of total floor space) and is divided into eight bays. Three separate tenants currently occupy six bays. Two tenants, who rent 4 bays between them, have been given notice to vacate by June 30, 2015. The Company intends to meet with the third tenant with the goal of trying to sign a long-term lease.
The property is large enough for the construction of multiple additional large-scale buildings and the company has engaged a developer to provide schematics and zoning guidance. During the escrow phase, the company had the property re-zoned to reflect the recommendations of the developer.
The purchase price of the property was $1,200,000 USD and the company has secured a third party mortgage on the property in the amount of $1,080,000 USD. The mortgage is non-recourse and has a 24 month term with 5% interest only payments due monthly.
The Company intends to generate revenue from the property via long-term rentals and/or leases for the building (or portions thereof). To further clarify, Chlormet will rely upon landlord exemption provisions under Washington State regulations RCW 69.50 and WAC 314-55 that allow for the lease of facilities, security equipment, fixtures, tenant improvements, utility services, and maintenance/security services to State licensed producers and processors.The rents will be reasonable and fixed and the Company will not be involved in or participate in the business of its tenants.
“The company is thrilled to have closed a transaction that will in short order diversify its income. I was very pleased with the efforts put forth by both management and our consultants during the due diligence and re-zoning processes,” stated CEO Yari Nieken.
As a result of the Company’s intent to negotiate with the current tenant, PacCan will not continue with the rental agreement with a private Washington state licensee announced in a news release dated November 20th, 2014
In addition the Company would like to confirm that the previously announced agreement with Babcock Bench Farms (see news release dated June 19th, 2014) has expired and there is no association between the two groups.
About Chlormet Technologies
Chlormet Technologies Inc. is moving into the Medical Marijuana sector by purchasing a 100% interest in AAA Heidelberg, a private Ontario company that is in the process of applying for a MMPR license. Although the Company cannot guarantee nor estimate the timing for the issuance of a license to AAA Heidelberg, it is Chlormet’s goal to become the next publicly traded Canadian company to be granted a new medical marijuana production license.
VapeTronix, a wholly owned subsidiary of the Company is in the process of expanding its 1313 brand of electronic cigarettes and associated technologies.
With the purchase of the property in Whatcom County, WA, the company plans on generating revenues via long term leases to tenants.
ON BEHALF OF THE BOARD OF DIRECTORS
“Yari Nieken”
Interim President and CEO
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer’s future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
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Chlormet completes purchase of Washington State property
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Source: TheNewswire.ca