Operations

Home / Operations

Operations

Forming a vertically integrated cannabis system means expanding into states by acquiring low cost, high return businesses or operations. Various regulations and legislation in differing states may lead to unique business agreements in terms of revenue, ownership, sales, product distribution and more. Our Lineage team is well versed in the legalities of the industry, which means we can form the best agreement possible for both our team and for the strategic partner.

Lineage has already entered into a number of agreements to acquire dispensaries, medical marijuana clinics, grow operations, and cultivation facilities.

Business Model & Strategic Partnerships

The Lineage mission is to provide maximum profitability to shareholders through our strategic acquisition model and current industry expertise. By acquiring retail, distribution, and cultivation facilities, our team is poised to create a “big picture” model that spans across multiple sectors of the industry.

Pending Acquisitions

Explore our partners below to learn more!

Yolo County

Maryland

Sacramento

Pennsylvania

San Jose

Washington

Oregon

Grow and GreenhouseYolo County, California

Agreement to acquire low-cost greenhouse and premium indoor California grow.

  • Fully-licensed & fully operational 40,500 square for greenhouse faculty
  • Additional 3,000 square foot craft-style indoor cultivation facility
  • Application submitted to increase canopy space onto adjoining 15-acre panel
  • Existing space has potential to yield 6,000+ pounds of cannabis
  • Strong operational track record with distribution relationships in place
  • Definitive agreement in place to acquire 51% of license holder with the closing anticipated in July 2018

Disclaimer: completion of Yolo acquisition is subject to satisfactory due diligence and all required approvals and consents, including the approval by applicable regulatory agencies. There can be no assurance that the acquisition will be completed as proposed or at all.

Indoor Cultivation and ExtractionSacramento, California

Option to acquire Sacramento indoor cultivation and extraction project

  • 54,000 square foot of indoor cultivation, extraction, manufacturing and distribution capabilities
  • Conditional Use Permit (CUP) submitted in January 2018
  • Estimated CapEx: $4.0 million
  • Annual Capacity: 2,000 pounds of premium quality flower
  • Annual Capacity: 3,000+ pounds of high-margin cannabis extract
  • Secured 30-year lease at the $1/square foot, 100% below market rate

Disclaimer: completion of Sacramento acquisition is subject to satisfactory due diligence and all required approvals and consents, including the approval by applicable regulatory agencies. There can be no assurance that the acquisition will be completed as proposed or at all.

Lux DispensarySan Jose, California

Letter of Intent to acquire 1 of 16 licenses dispensaries in San Jose.

  • Retail foothold in the largest cannabis market with attractive barriers to entry
  • The City of San Jose is not taking new applications for cannabis licenses
  • Includes delivery, cultivation, and extraction licenses
  • Platform to launch Bay Area delivery service in Q4 2018

Disclaimer: Lineage has a binding LOI in place to acquire 100% is Lucrum Enterprises inc., d/b/a LUX Cannabis Dispensary. Closing anticipated in June/July 2018. Completion of the LUX acquisition is subject to satisfactory completion of due diligence, execution of a definitive agreement, and all required approvals and consents, including the approval by applicable regulatory agencies. There can be no assurance that the LUX acquisition will be completed as proposed or at all.

Terpene Station DispensaryEugene & Portland, Oregon

Letter of Intent to acquire proven Oregon retail operation (Terpene Station)

  • Operating dispensaries in Oregon branded under the “Terpene Station” banner
  • Premium product offering via exclusive supply arrangements with Oregon’s top growers and processors
  • 5,500 square foot of retail space between 2 locations
  • Binding LOI in place with closing anticipated in June/July 2018
  • Application to secure licenses from OLCC submitted in June

Disclaimer: Completion of the Terpene Station acquisition is subject to satisfactory completion of due diligence, execution of a definitive agreement, and all required approvals and consents, including the approval by the Oregon Liquor and Cannabis Commission. There can be no assurance that the Terpene Station acquisition will be completed as proposed or at all.

Herbiculture DispensaryBurtonsville, Maryland

Letter of Intent to acquire high-end retail in coveted east coast market (Herbiculture)

  • One of 11 licensed dispensaries in Montgomery County, MD (over 1 million residents)
  • Situated within 1 hour of Baltimore, Rockville, and Gaithersburg
  • Binding LOI in place to acquire 35% equity interest
  • Negotiations ongoing to acquire a majority interest

Disclaimer: Completion of the acquisition of the 35% equity interest in Herbiculture is subject to satisfactory completion of due diligence, execution of a definitive agreement, and all required approvals and consents, including the approval by the Maryland Medical Cannabis Commission. There can be no assurance that the Herbiculture acquisition will be completed as proposed or at all.

Medical Marijuana ProgramSouthwest, Pennsylvania

Footprint expansion into the large oligopolistic market

  • Lineage has advanced USD $200,000 for a 20% interest in a cultivation license applicant with negotiations ongoing to acquire a major interest
  • Partner group has successfully secured 3 dispensary licenses
  • Full refund of investment if an application is unsuccessful
  • Limited licenses: 25 grower/processor licenses and 50 dispensary licenses, with only 2 available in the Southwest region
  • Extensive conditions list in the medical-only state
  • Legal status: medical-only
  • Current patient count: 30,000+
  • Projected 2018 Sales: USD $100+ million
  • Population: 12,805,537

Cultivation R&D CampusBellingham, Washington

Cultivation Research & Development Campus

  • Joint-venture with Nutritional High International Inc (CSE:EAT)
  • IP licensing, equipment leasing, and consulting agreements in place with Mt. Baker Greeneries, LLC — holder of Tier 2 producer/processor license
  • Indoor cultivation facility to supply in-house extraction operations and serve as a testing ground for innovative cultivation techniques