Mountain High Acquisitions Corp (OTCMKTS:MYHI)’s Subsidiary – One Lab Co has supplied Modular Extraction Lab to Workforce Labor Solutions, LLC. Washington based licensed cannabis producers will get extraction and labor services from Workforce Labor. As per the agreed terms, Workforce Labor will pay monthly $25,000 to One Lab for five years.
No need to build a separate lab
With access to the extraction equipment of One Lab, Workforce Labor eliminates the need for building a separate lab to serve its clients.
Chief Executive Officer of Mountain High, Alan Smith, said annual revenue stream of $300,000 creates a significant leap for the company. It fulfills the ambition of supporting the licensed producers and growers in the growing cannabis industry by providing access to professional services, cost-cutting solutions, turnkey solutions, and required capital. Both Workforce Labor and Modular Extraction will benefit from this deal going forward.
Mountain High took over One Lab through an all-stock deal of 88 million restricted shares last year. One Lab is engaged in the supply of cannabis extraction equipment/ services to manufacturers, who need consistent extraction quality. Mountain High is also striving to satisfy the growing need for cannabis concentrates.
Plans to acquire additional assets
Mountain High offers infrastructure assets to retailers, processors, and licensed manufacturers, who are engaged in the cannabis business. It plans to take over real estate, equipment, and technologies using its internally generated cash flow.
Mountain High has reported revenues of $61,875 in Q3 2018. However, it has not divulged details of revenues in Q3 2019. The company reported an operating loss of $59,773 in Q3 2019. For the six months ending September 30, 2019, Mountain High has converted convertible notes of $88,957 into common shares of 8.37 million.
The outstanding convertible notes, which are payable to third parties, as of September 30, 2019, are $128,811. Each convertible note carries an interest of between 3% and 12%. The holders of convertible notes have an option to convert the notes into common shares of the company at a discount to the current price. Mountain High paid a fee of $45,000 to its director and CEO as of September 30, 2019.