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Note 10. Land Deposit
9 Months Ended
Jun. 30, 2014
Notes  
Note 10. Land Deposit

NOTE 10.    LAND DEPOSIT

 

On June 16, 2014, the Company entered into an agreement to purchase a five-acre parcel of undeveloped land in Denver, Colorado. The Company plans to develop the property as a facility called the "Denver Cannabis Center." Plans for the Denver Cannabis Center include the construction of a 126,000 square foot facility that would include greenhouse and indoor cultivation areas that will be sold to licensed cannabis operators. The Company does not cultivate, process or sell cannabis.

 

Additional plans for the Denver Cannabis Center include a cannabis dispensary, a research facility, a training center, an infused product production facility and corporate offices.

 

The Company paid the seller $250,000 for the option which amount will be applied toward the purchase price of $2,250,000 at the closing.

 

The Company estimates that the cost to build and develop the Denver Cannabis Center will be approximately $8.5 million.

 

Subsequent to June 30, 2014, the Company completed the transaction by paying the remaining $2,000,000 plus closing costs.