1.42%)
-14.97%)
Back
3 MIN READ
In mid-June, the Flandreau Santee Sioux Tribe (FSST) became the first reservation in South Dakota to legalize marijuana. This move comes after the Department of Justice (DOJ) announced that Native American tribes can grow and sell marijuana on reservation lands in December 2014.
After doing a little research, the team at Technical420 found a connection between the tribe and Monarch America (BTFL), a publicly traded cannabis company. In early February, Monarch America appointed Robert Shepherd to be the company’s Native American Tribal Relations Officer. Shepherd is the former Chairman of the Great Sioux Nation of South Dakota (Feb. 2012 – Jan. 2015) and we believe the company is levered to this announcement.
Monarch America enters into a consulting agreement with the tribe
Today, Monarch America, Inc. announced that they entered into a five year consulting agreement with the South Dakota Flandreau Santee Sioux Tribe. will help with the design, construction, and development of a cultivation facility with a tribally owned subsidiary.
Under terms of the agreement, Monarch will assist with the design, construction, and development of a 10,000 sq. ft. marijuana grow facility to supply a 15,000 sq. ft. on-site retail recreational marijuana consumption lounge with 10 lanes of bowling, arcade games, gaming machines, bar and food service, 5,000 sq. ft. outdoor patio and music venue in an existing structure adjacent to the Royal River Casino and Hotel in Flandreau, South Dakota.
Eric Hagan, CEO of Monarch America said, “This is a very important milestone for both Monarch America and the Flandreau Santee Sioux Tribe as we partner to design, build, and consult on the first legal marijuana grow operation and recreational consumption lounge on sovereign tribal land in South Dakota. We are excited to have the opportunity to apply our extensive knowledge and experience to establish this first of its kind marijuana facility that will certainly help to provide significant additional long-term economic development and social empowerment to the Flandreau Santee Sioux Tribe.”
Monarch will receive a fixed percentage fee on net revenues for consulting services related to the design, construction, development, and ongoing advising of the grow facility. Under the agreement, the company’s subsidiary will provide FSST with all nutrients, lighting equipment, grow mediums, and other supplies at wholesale prices. Monarch will oversee and consult on all facets of cultivation and facility management, including technology and equipment leasing, inventory control, staffing and training, and day-to-day operations.
The tribe will be responsible for all construction costs and expenses related to the operation of the marijuana cultivation facility and will maintain 100% ownership and control of its operation.
Outlook
Shares of Monarch America (BTFL) are down over 82% during 2015 and the stock is trading below its 20, 50, and 150 day moving average. Today’s announcement is a major development for the company and for the entire cannabis industry. This agreement provides Monarch with another revenue stream and we expect the company to see incremental revenue growth as they continue to execute on its business plan.
Important Investor Disclosures:
Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries does not accept any form of compensation from companies in return for writing reports on them. Also Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries do not hold any stock positions in companies covered by Technical420LLC.
Technical420 LLC is not a FINRA member firm. Technical420 LLC is responsible for the preparation and distribution of research created in the United States. Technical420 LLC is located at 40 SW 13th St. Suite 1002, Miami, FL 33130.
All good -- no spamming here.
Get the Latest Cannabis News & Stock Picks.
Comments