STUART, FL -- (Marketwired) -- 11/09/16 -- Ecosphere Technologies, Inc. (OTCQB: ESPH), a technology development and intellectual property licensing company, today announced that its majority owned subsidiary, Sea of Green Systems, Inc. ("SOGS"), has executed a Technology Licensing Agreement with Ecosphere Development Company, LLC ("EDC"), a wholly owned subsidiary of Ecosphere Technologies, that designs, builds and leases turnkey growing facilities that utilize SOGS products, technologies, software, nutrients and Agronomic consulting services. In exchange for this right, EDC expects to pay SOGS an agreed upon monthly licensing fee for each growing facility that EDC builds and leases to licensed marijuana growers.
As part of its first installation in Washington State, EDC is constructing Phase 1 of its 6 acre Cannatech Agriculture Center that at complete build out will include up to forty-thousand square feet of growing canopy that is split among four licensed, Tier II tenants or ten-thousand square feet per tenant. Each Cannatech Ag Center will be a turnkey, high tech growing facility that incorporates SOGS Precision Agriculture technologies to maximize quality and increase plant yield. EDC plans to build and lease each Cannatech Ag Center to licensed I-502 growers in Washington State that will pay monthly rent and licensing fees to EDC for the use of the facility, complete with SOGS proprietary growing technologies and nutrients. EDC has begun construction of Phase 1 and has signed preliminary leases with its first tenant. Upon completion of construction and the granting of a license to the tenant -- which can only occur after completion of construction -- the tenant intends to commence growing marijuana in accordance with Washington State law.
For each one of the four Phases of the Cannatech Ag Center, EDC expects to compensate SOGS $25,000 per month in Technology Licensing and Royalty Payments for the life of the lease term or $100,000 per month, which will equate to $1,200,000 per year for potentially up to 30 years.
Corey McGuire, CEO of Sea of Green Systems, stated "SOGS has worked closely with Ecosphere and EDC over the past 2-years to assist in the designing of EDC's turnkey, high tech growing facilities. Not only will EDC be incorporating SOGS Precision Agriculture technologies into its facilities, but EDC has also engaged SOGS to provide Agronomic Consulting Services to its tenants as a holistic approach to ensure high quality and optimum yields. We are excited to be providing our proprietary technologies to EDC as it constructs Phase 1 of this first project and see this as an important step forward in designing, building and leasing turnkey growing facilities to licensed growers in the fast growing, medical and recreational marijuana industry."
McGuire continued, "Collectively, we plan to design, build and lease turnkey growing facilities not just in Washington State, but throughout the entire United States market where States have approved either medical and or recreational use of marijuana. This monthly, recurring revenue contract is expected to provide SOGS and its shareholders with a significant opportunity to start monetizing its IP."
Dennis McGuire, Chairman and CEO of Ecosphere Technologies, said "EDC has spent the past 2 plus years locating and acquiring its land in Washington State, designing its facilities and structuring a business model for the shareholders of Ecosphere Technologies that is expected to generate significant monthly recurring revenues over a potential lease term of up to 30 years. Rather than leasing buildings or warehouses with no technology in them, to an industry that will continue to require large volumes of commercial space, EDC is building the most state-of-the-art, turnkey "Smart" growing facilities that have been engineered to produce consistent, high quality, increased yields. By utilizing SOGS technology and services, we expect to be able to charge a premium monthly rental fee to our tenants while supplying them with the most state-of-the-art "Smart" growing facilities in Washington State."
McGuire continued, "SOGS Precision Agriculture Technologies are at the leading edge of what is currently available in the commercial marijuana industry as well as the commercial agriculture industry. Growers that use SOGS "Smart" technologies to monitor and control the air temperature, humidity, CO2, light levels above the plant canopy, while controlling water temperatures, DO, pH, EC, and ORP in the nutrients the plants use for photosynthesis will reduce the stress events on marijuana plants and allow them to grow to their maximum potential. Our customers have had great success growing high quality medical marijuana this past year using SOGS technology in our ECOS GROWCUBE ® both in Nevada and Washington State. Additionally, SOGS CAVISONIX ® treated EcosGROW and EcosBLOOM plant nutrient formulas have been used on tomatoes, blueberries, watermelons and commercial sod applications with great success, increasing plant yields and times to harvest. "
About Sea of Green Systems
Sea of Green Systems, Inc. ("SOGS") is a majority-owned subsidiary of Ecosphere Technologies that sells high-tech growing equipment and nutrients to the Precision Agriculture industry. With a global field-of-use license to Ecosphere's multi-patented OZONIX ® water treatment technology and CAVISONIX ® nutrient-mixing technology, SOGS is well positioned to deliver engineered solutions to the Agriculture industry worldwide.
For more information, please visit http://www.EcosphereTech.com/Divisions/Sea-of-Green-Systems OR https://www.SeaofGreenSystems.com
About Ecosphere Development Company
Ecosphere Development Company, LLC. ("EDC") is a wholly owned subsidiary of Ecosphere Technologies that was organized to develop and lease turnkey, high tech Agricultural Centers in locations around the United States that are geographically, politically and economically well positioned. EDC's first project is located in Southeastern Washington State, where water and natural resources are plentiful, with over 300 days of sunshine per year.
For more information, please visit http://www.EcosphereTech.com/Divisions/Ecosphere-Development-Company
About Ecosphere Technologies
Ecosphere Technologies, Inc. (OTCQB: ESPH) is a technology development and intellectual property licensing company that develops environmental solutions for global water, energy, industrial and agricultural markets. We help industry increase production, reduce costs, and protect the environment through a portfolio of unique, patented technologies: technologies like Ozonix ®, the Ecos PowerCube ® and the Ecos GrowCube™, which are available for sale, as well as exclusive and nonexclusive licensing opportunities across a wide range of industries and applications throughout the world.
Our technologies and products are available through multiple brands and subsidiaries that include Sea of Green Systems, Ecosphere Development Company and Fidelity National Environmental Solutions
For more information, please visit www.EcosphereTech.com
For investor related inquiries or to stay informed of news and events, join Ecosphere's email list by visiting us at www.EcosphereTech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the construction and development of EDC's growing facilities and the receipt of revenues, SOGS expected future revenues, SOGS future services, EDC's anticipated premium rental fees, EDC's plans with respect to the Cannatech Agricultural Center in Washington State and elsewhere, and expected improvements in crop yields. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect results of operations and business strategy. Important factors that could cause actual results to differ from those in the forward-looking statements include EDC's ability to complete construction within budget, the ability of EDC's tenants to successfully grow marijuana, and developments affecting the price of marijuana and other crops. Further information related to risks affecting us and our subsidiaries is contained in our filings with the SEC, including our Form 10-K filed on April 14, 2016. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Source: Ecosphere Technologies, Inc.