Arcturus is a British Columbia company focused on developing and marketing products in the consumer LED industry and in the Controlled Environment Agriculture (“CEA”) industry through its online sales channels and web presence relative to its Scorpion LED & COB grow lights. Recently, Mr. Rob Huston, the head of the Company’s LED division, won 1st place for the “Indica – Private Grower” category at Bio Cup Canada, the largest cannabis cup to ever take place in Canada by using the Company’s Scorpion COB grow lights with off the shelf seeds. Five plants were grown legally using an MMAR patient license in a 4’x8′ space, using 1500 watt total, consisting of 1 Scorpion 9x 525 watt and 3 Scorpion 5x 325 watt each. Mr. Huston’s five plants were harvested at eight weeks and resulted in a 1.35-lb harvest.
Arcturus has had much success in the LED space, even prior to Mr. Huston’s award, putting itself in a very good position ahead of medical marijuana legalization in Canada. Now that the Trudeau administration has signaled its plan for a complete legalized cannabis market, Arcturus is using its current lines of LED and CEA technologies to penetrate the market and aid in the growing number of licensed producers (LP’s) building out their facilities.
With an eye beyond simply sales, the Company contracted with Mr. John Sweeney, formerly the vice president of operations for Tilray, one of Canada’s biggest privately licensed cannabis producers owned by Privateer Holdings. Mr. Sweeney will spearhead the Company’s professional consulting services in the area of “current Good Manufacturing practice” (cGMP), which provides for systems that assure proper design, monitoring, and control of manufacturing processes and facilities in support of mandates on the horizon.
The Company also engaged the services of CBO Financial, Inc. as its financial advisor with respect to New Market Tax Credits (NMTC) for a vertical farm project. The NMTC program is a $65 billion federal program designed to incentivize private investment in low-income communities. NMTCs are provided to financial institutions in exchange for equity investments that eligible businesses can use to subsidize project development costs. The NMTC program provides 20% to 25% of a project’s cost in very flexible financing for projects located in low-income communities. CBO Financial helps driven organizations, such as Arcturus, to finance facilities that will provide goods and services that benefit populations in need and revitalize communities. Arcturus’ partnership with CBO Financial is both shareholder and capital structure friendly in the sense that the draw of capital is non-dilutive in nature. Arcturus and CBO Financial are currently developing one vertical farming project together, but plan to work together on many more projects in the future.
On October 4, 2016, the Company closed on its transaction to acquire a large portfolio of revenue generating Apps and source code (the “App Portfolio”). This all-stock acquisition brings on a seasoned team of app developers, which instantly expands the Company’s tech portfolio and positions Arcturus for rapid rollout of a suite of cannabis centric apps. “As more and more states legalize the use of Cannabis we believe that more and more technology will be needed to manage the growth of consumers with apps being the centerpiece; be it delivery, discovery, customer acquisition, or eventually payment services,” says Mikael Hovhannisyan the app manager.
The App Portfolio is currently producing revenue and is a consistent source of monthly income, as the App Portfolio’s trailing 12-month EBITDA was USD $139,000 or CDN $183,000. Subsequent to closing on this transaction, the Company’s new app team established a new mobile gaming division with the intent to put out 420 themed games, which will generate revenue through In App Purchases (IAP) as well as through ad impressions.
The Company is also pleased to announce that it has successfully raised $810,000 CDN due to the recent exercise of warrants by the Company’s early investors. The subject $0.15 warrants were part of a 2014 private placement and were exercised voluntarily by the warrant holders.
“We are excited at our positioning within the LED and CEA industries,” says Mr. William Gildea, Arcturus Growthstar Technologies, Inc.’s CEO and Chairman. “Through our selective, accretive technology acquisitions, we are able to generate revenue, which in turn allows us to develop vertical farms and ultimately build value for our Shareholders.”
Arcturus would also like to take this opportunity to announce that the first Arcturus Shareholder Conference Call will be scheduled for early November 1, 2016. We invite all Shareholders to attend and to submit questions no later than Monday, October 31st at 5:00 p.m. EST. Questions may be emailed to Arcturus’ CEO and Chairman, William Gildea at email@example.com.
For further information, contact William Gildea, Director, at 617.834.9467.