Millennium Investment & Acquisition Co. Inc. Provides Corporate Update

Currently, MILC has invested in operating companies with two areas of focus:
1) Sustainable cultivation of Cannabis in Greenhouses through Millennium Cannabis
2) Sustainable production of Activated Carbon through Millennium Carbon

Millennium Cannabis

MillCann has identified greenhouse cultivation as the sustainable method for growing cannabis in a cost-effective manner with a lower carbon footprint than indoor cultivation. Historically, cannabis in the United States has been grown indoors and this trend has continued even as various States have implemented legalization. MillCann believes that its strategy of focusing on greenhouse cultivation represents a competitive advantage. Greenhouses cost less to construct and less to operate than indoor cultivation facilities and as such, we believe MillCann can compete favorably with this approach.

The cannabis industry is experiencing rapidly growing demand amid the tailwind of increasing legalization at the State level. The inefficient availability of capital in the cannabis industry given the illegal status at the federal level presents an opportunity for MillCann as it has efficient access to capital through its strategic affiliation with Power REIT (NYSE-American ticker: PW and PW.A) which is focused on financing the real estate component of controlled environment agriculture (CEA) facilities in the form of greenhouses. As a result, MillCann is able to establish operations efficiently as it has done with its first two transactions.

To date, MillCann has commenced operations in Walsenburg, Colorado and Vinita, Oklahoma and is actively pursuing further expansion of its activities related to the sustainable cultivation of cannabis. As part of establishing these two operations, MillCann has rapidly put together an experienced team of greenhouse cannabis cultivation experts. The team is led by Jared Schrader who has significant experience consulting for financial institutions including private and public banks, hedge funds, and REITs. In this role he developed operational strategies and software, performed due diligence of asset purchases, monitored performance of portfolios and handled sales through securitizations. Within the Cannabis industry, Mr. Schrader has a solid track record growing revenue at a southern Colorado cultivation facility from $150,000 annually to over $150,000 weekly (i.e. > $8 million annually) across the span of two years.

Walsenburg, Colorado

On May 24, 2021, MILC announced that it entered into a transaction that represents a new area of focus MILC related to sustainable Cannabis cultivation in greenhouses by investing in a newly formed cannabis operator, Walsenburg Cannabis LLC (“WC”). MILC’s total capital commitment to the project is $750,000. As part of the transaction, MILC agreed to lend capital to WC for its business operations and MILC is in the process of obtaining regulatory approvals for holding cannabis licenses in Colorado. Upon receiving regulatory approval, it is contemplated that MILC will become the majority owner of WC in the form of a 77.5% preferred equity ownership stake.

Simultaneous with MILC’s investment, WC entered into a long-term lease (the “Lease”) of a 22.2 acre property (the “WC Property”) in Walsenburg, Colorado with Power REIT. The Property has substantial existing improvements including existing greenhouse and processing space. As part of the Lease, Power REIT, has agreed to fund the rehabilitation of the existing improvements and the construction of additional greenhouse space. Upon completion, which is targeted for this fall, the WC Property will have a total of approximately 102,800 square feet of greenhouse and related space.

The Walsenburg cannabis campus was a distressed acquisition of a facility that had ceased operations. MILC believes that it was acquired at an attractive basis relative to the in-place improvements which provide an attractive opportunity to immediately commercialize the facility for cannabis cultivation. MILC believes that this property has significant potential to become a large-scale, low-cost producer of high-quality cannabis to compete effectively in the Colorado market.

The campus is subdivided into five parcels which allows for a significant availability of plant count based on how the Colorado Marijuana licensing works. We currently anticipate an 11,500 plant count per cultivation and we are targeting four crop cycles in Walsenburg. We intends to seek to increase the allowable plant count as Colorado licensing permits. It is possible that we will be able to increase the plant count during 2022.

Vinita, OK

On June 11, 2021, MILC announced that it has agreed to invest in a newly formed cannabis operator – VinCann LLC (“VC”). As part of the transaction, MILC agreed to invest $750,000 in the form of a controlling preferred equity interest whereby MILC receives a full return of its invested capital plus a preferred return of 12.5% after which MILC has a 77.5% ownership stake. The remaining subordinated ownership is held by the management team of VC.

Simultaneous with MILC’s investment, VC entered into a 20-year lease for a 9.35 acre property in Vinita, Oklahoma with approximately 40,000 square feet of greenhouse, 3,000 square feet of office space, and 100,000 square feet of fully fenced outdoor growing area with 20,000+ square feet of hoop structures that have been purchased by Power REIT.

The Vinita facility was a distressed acquisition purchased from an undercapitalized operator. Strong in-place infrastructure and the operational status upon acquisition allows for rapid speed to revenue. MILC believes that it was acquired at an attractive basis relative to the in-place improvements which provide an attractive opportunity to immediately commercialize the facility for cannabis cultivation. MILC believes that this property has significant potential to become a large-scale, low-cost producer of high-quality cannabis to compete effectively in the Oklahoma market. The targeted total plant count cultivation in 2022 for the greenhouse and outdoor, respectively, are 26,000 and 50,000 per year.

David Lesser, MILC’s Chairman and CEO, commented, “We are excited to provide an update regarding our new area of focus – sustainable cannabis cultivation in greenhouses. We are also proud of the rapid progress we are making at each site as well as the teams we are building. We are very focused on building teams that draw from the broader business community and people with a focus on greenhouse cultivation rather than just drawing from the cannabis industry. We are on track to report initial revenue from these activities in the fourth quarter of 2021. We expect to ramp up significantly in 2020 as we seek to generate significant operating income from these operations.”

Jared Schrader, Millennium Cannabis’ President, commented, “The cannabis industry is growing at an incredible rate and our approach which is focused on low-cost and sustainable cultivation in greenhouses is paramount to a long-term and viable business model. Both of our current projects in Colorado and Oklahoma benefit from the potential for rapid speed to revenue. We are focused on bringing best in class, large-scale mainstream agricultural cultivation techniques to the cannabis industry. We are thankful to have best in class industry experts at Millennium Cannabis and are looking forward to growing the team as we take on more projects in more states.”

Millennium Carbon

Hawaii

In May, 2015, MILC acquired an activated carbon plant (the “MHC Plant”) out of bankruptcy at a steep discount to the original investment.

The MHC plant is intended to process a waste stream of macadamia nut shells into a special form of premium-grade activated carbon, which, due to its large surface area and complex network of pores, provides benefits in a variety of chemical processes including filtration, purification and energy storage. In particular, the activated carbon expected to be produced by the Plant was targeted for manufacturing electrical double-layer capacitors, which are commonly referred to as Ultracapacitors or Supercapacitors, an advanced energy storage alternative to traditional batteries. Ultracapacitors are found in a diverse array of electronic equipment from daily usage engine starting, hybrid and electric vehicles to windmills.

MHC successfully restored all production equipment and necessary support systems to operation and completed 31 trial run campaigns that produced over 60 tons of activated carbon. The process was iterative where MHC operated the plant for a couple of days to produce Activated Carbon and then performs laboratory testing. MHC produced some very high-grade material that would be attractive to ultracapacitor manufacturers. Unfortunately, MHC has also experienced significant variations in the quality of the material produced.

During the first half of 2019, MHC concluded that the existing carbonization reactor intended to remove volatile material and produce char was the culprit causing the inconsistent results. In evaluating alternatives, MHC concluded that it had identified a novel and potentially better approach to producing Activated Carbon. Based on this, MILC has made efforts to minimize overhead and cash drain at MHC while it evaluates alternatives for the project which may include repurposing the plant for other uses or a potential sale.

Kentucky

As described above, in evaluating operational issues at MHC, MILC identified a novel approach to producing Activated Carbon and determined to construct a pilot-plant as a proof of concept. This project is located in Kentucky and the initial feedstock is a waste stream that is available in large quantities from bourbon distilleries which is a large industry in Kentucky and which represents a significant waste problem that is impacting the industry. To build the pilot plant, MILC, through its wholly owned subsidiary, Millennium Carbon LLC (“MC”) purchased several used pieces of equipment at a fraction of the cost of new equipment in order to construct a plant capable of establishing the viability of the process beyond a “lab-scale” demonstration. To date, MC has operated this pilot plant and believes that the concept is valid and can be scaled to a commercial operation. MC is currently formulating a plan for a commercial scale Activated Carbon plant based on the experience with the pilot plant.

David Lesser, MILC’s Chairman and CEO, commented, “While we are disappointed with the status of the Hawaii endeavor, we believe that the experience has led to what could be an extremely exciting opportunity to develop a sustainable approach to the production of activated carbon from waste materials. Typical production of activated carbon has a very high carbon footprint whereas we believe our model should have a negative carbon footprint. We look forward to continuing to develop this novel concept which should have applications beyond our initial waste stream feedstock.”

SMC Global

As previously announced, MILC has now completed the liquidation of its investment in SMC Global which represented its sole investment in securities.

Updated Investor Deck

MILC has posted an updated investor deck which is available on our website: http://www.millinvestment.com/

Deregistration as a 1940 Act Company

On October 14, 2020, shareholders approved a proposal to change the nature of the Company’s business from a registered investment company under the Investment Company Act of 1940 (the “1940 Act”) and to a holding company that focuses primarily on owning and operating businesses that produce activated carbon and acquiring other private businesses (collectively, the “Deregistration Proposal”). The Company is in the process of implementing the Deregistration Proposal so that it is no longer an “investment company” under the 1940 Act and has applied to the Securities and Exchange Commission (the “SEC”) for an order under the 1940 Act declaring that the Company has ceased to be an investment company (the “Deregistration Order”).

While the Company is committed to fully implementing the Deregistration Proposal, it is still contingent upon regulatory approval and the ability to reconfigure the Company’s portfolio to deregister as an investment company. The time required to reconfigure the Company’s portfolio could be impacted by, among other things, the COVID-19 pandemic and related market volatility, determinations to preserve capital, the Company’s ability to identify and execute on desirable acquisition opportunities, and applicable regulatory, lender and governance requirements. The conversion process could take up to 24 months; and there can be no assurance that the Deregistration Proposal, even if fully implemented, will improve the Company’s performance. Further, the SEC may determine not to grant the Company’s request for the Deregistration Order, which would materially change the Company’s plans for its business.

As previously announced, MILC has now completed the liquidation of its sole investment in securities – its investment in SMC and plans to invest the proceeds in operating businesses.

ABOUT MILLENNIUM INVESTMENT & ACQUISITION COMPANY INC.

Millennium Investment and Acquisition Co. Inc. (ticker: MILC) is an internally managed, non-diversified, closed-end investment company. During 2020, MILC announced that it was seeking to de-register as an Investment Company that is regulated under Investment Company Act of 1940. MILC is currently seeking an Order from the SEC declaring that it has ceased to be an Investment Company as it no longer meets the definition of holding itself out as investing in securities but rather has pivoted to focus on direct investments in operating businesses.

MILC is currently focusing on opportunities in sustainable cannabis cultivation and sustainable production of activated carbon.

Additional information about MILC can be found on its website: www.millinvestment.com

ABOUT POWER REIT

Power REIT is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture for the cultivation of food and cannabis.

Power REIT is focuses on the “Triple Bottom Line” with a commitment to Profit, Planet and People.

Additional information about Power REIT can be found on its website: www.pwreit.com

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This document includes forward-looking statements within the meaning of the U.S. securities laws. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe,” “expect,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”, “seek” or other similar expressions, or negatives of those expressions, although not all forward-looking statements contain these identifying words. All statements contained in this document regarding our future strategy, future operations, future prospects, the future of our industries and results that might be obtained by pursuing management’s current or future plans and objectives are forward-looking statements. You should not place undue reliance on any forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date of the filing of this document. Over time, our actual results, performance, financial condition or achievements may differ from the anticipated results, performance, financial condition or achievements that are expressed or implied by our forward-looking statements, and such differences may be significant and materially adverse to our security holders.

Hamakua Macadamia Nut Co. offers locally grown nuts in unique flavors

If you’re looking for a local, healthy snack that tastes great too, look no further than Hamakua Macadamia Nut Company! HI Now hosts Kanoe Gibson and Kainoa Carlson are doing a blind taste test to see if they can identify the company’s unique flavors.

Please CLICK to watch the complete segment.

Sponsored by Hawaii State Department of Agriculture

Hamakua Macadamia Nut Company farms approximately 1,600 acres in the southern part of Hawaii Island in the District of Kau. The company also has about 400 acres just outside of Hilo and purchases crop from over 150 independent farmers from all over the Isand of Hawaii.

What sets its macadamia nuts apart from the rest? The freshness. Since the nuts are grown and processed in Hawaii, there is never a delay in getting fresh product to families around the islands.

Its number one selling product is the Lightly Salted Macadamia Nut. The company also offers Unsalted, Chili Peppah, Wasabi, Kikkoman, Island Onion and SPAM flavors. If you have a sweet tooth, it also makes a Kona Coffee Glazed Macadamia Nut, which is great for a dessert or morning pick-me-up!

Macadamia nuts are high in monosaturated fats, or the “good fats,” which help lower cholesterol levels. Macadamia nuts are also a wonderful source of vitamins and protein.

Hamakua Macadamia Nut Company also sells product in larger quantities than its standard 5 oz. cans or 10 oz. pouches. You can also find a four lb. vacuum sealed bag in Salted and Unsalted.

If you have had a macadamia nut cookie in Hawaii, the odds are that the nut came from Hamakua Macadamia Nut Company! If you want to learn more or order any of the products from Hamakua Macadamia Nut Company, you can visit hawnnut.com.

To learn more about how you can get the Hawaii Seal of Quality on your products, get more information here: sealofquality.hawaii.gov

For more information: hawnnut.com

States with the most farmland

Greater Fort Wayne Business Weekly

Ken Levy Aug 23, 2020

Stacker explores states with the most and least farmland. The U.S. has roughly 2 million farm households, but which American regions have the most acreage devoted to farming? Stacker analyzed the U.S. Department of Agriculture’s Major Land Uses Survey, then ranked each state and the District of Columbia based on the number of acres each has dedicated to farmland.

#45. Hawaii

  • Total cropland: 372,000 acres
  • Cropland as a percent of all state land: 9.1% (#17 lowest among all states )
  • Cropland used for crops: 161,000 acres
  • Idle cropland: 189,000 acres
  • Cropland pasture: 22,000 acres
  • Market value of agricultural products sold: $563.8 million (#46 among all states)
  • Most valuable crops produced: coffee ($50.2 million), macadamias ($42.0 million), papayas ($5.7 million), taro ($2.0 million), avocados ($1.6 million)

READ THE COMPLETE ARTICLE

Income grows for Hawaii island macadamia nut company

Hilo-based macadamia nut producer Royal Hawaiian Orchards L.P. pocketed more income in the third quarter as the company formerly known as ML Macadamia Orchards L.P. geared up to launch retail sales of flavored nuts in snack packages.

The company on Wednesday reported earning $296,000 in the three-month period ended Sept. 30, up from $38,000 in the same quarter last year.

The gain was mainly from nut prices that were 14 percent higher. Nut production was down 10 percent.

Total revenue rose 5 percent to $6.3 million in the recent quarter from $6 million a year ago.

Royal Hawaiian began selling 12 varieties of flavored nuts and fruit-and-nut clusters last week. Revenue from the new endeavor will start to show up in the company’s fourth-quarter financial report. The company reported spending $147,000 on the retail effort in the third quarter.

The retail endeavor represents a shift for Royal Hawaiian, which historically sold all its nuts in bulk to Hershey Co.’s Mauna Loa Macadamia Nut Corp.

Royal Hawaiian plans to retain one-third of its nuts next year to use for packaged food sales through subsidiary Royal Hawaiian Macadamia Nut Inc. and perhaps some bulk sales.

Income grows for Hawaii island macadamia nut company – Hawaii News – Honolulu Star-Advertiser

Fire damages room at Big Island macadamia nut factory

Some $80,000 in damages was done to a small room of the Hawaiian Host macadamia nut factory in Captain Cook in a fire late Sunday, Hawaii Island fire officials said.

Firefighters took 18 minutes to get the fire under control after receiving the call at 5:22 p.m.

Fire crews arrived to the two-story metal warehouse and found smoke coming out of the vents and eves of the first floor “sampling room”. Employees had been evacuated.

The fire was contained to the room with two macadamia nut roaster ovens, officials said.

Officials said the cause of the fire was under investigation.

Fire damages room at Big Island macadamia nut factory – Hawaii News – Honolulu Star-Advertiser

Feds say firm abused Thai farm workers in Hawaii, Washington

The U.S. Employment Opportunity Commission announced today that it filed lawsuits in Hawaii and Washington state against Global Horizons Inc., a Beverly Hills-based farm labor contractor, and eight farms, including six in Hawaii.

The agency said Global Horizons brought more than 200 men from Thailand to work on farms in Hawaii and Washington, where they were subjected to severe abuse.

The EEOC contends that Global Horizons engaged in a pattern or practice of national origin and race discrimination, harassment and retaliation. Hundreds of additional potential claimants and witnesses are expected, the EEOC said.

The agency said the Thai workers were assigned to work at these farms in Hawaii: Captain Cook Coffee Company, Del Monte Fresh Produce, Kauai Coffee Company, Kelena Farms, MacFarms of Hawaii and Maui Pineapple Farms.

The Washington state farms named in the lawsuits are Green Acre Farms and Valley Fruit Orchards.

The lawsuit follows criminal charges brought against Global Horizons last year. The U.S. government in September indicted Global Horizons owner Mordechai Yosef Orian and others with exploiting about 400 Thai workers in forced-labor conditions from May 2004 to September 2005.

Last JAL Kona-to-Tokyo flight lands on Big Island

KAILUA-KONA (AP) – After 14 years of serving the Big Island, financially strapped Japan Airlines has ended its flight between Tokyo and Kona International Airport.

Passengers arriving Friday on JAL Flight 70 from Narita International Airport were greeted with lei and live Hawaiian music, the Big Island Visitors Bureau said.

JAL offered the only direct international flight outside of North America to the Big Island, the bureau said. Since the inaugural Kona flight in June 1996, JAL has carried more than 980,000 visitors between Narita and Kona, it said.

”It is also a vital carrier of Big Island exports including macadamia nuts, papayas, coffee, spirulina, abalone and desalinated sea water to the Japanese market,” the bureau said in a news release.

”The JAL flight is without a doubt the most important international route for Hawaii island. The positive impact it has made on our economy for the last 14 years is highly significant, and we truly hope to welcome JAL back someday,”

SAYONARA

Japan airlines ends service between Kona and Narita

by Chelsea Jensen

Japan Airlines’ final flight to Kailua-Kona came and went Friday morning, ending 14 years of daily service to West Hawaii.

Since the direct Narita, Japan, to Kailua-Kona flight began in June 1996 nearly a million Japanese visitors have arrived at Kona International Airport, said Hawaii Tourism Authority Tourism and Marketing Vice President David Uchiyama. Annually, the flight brought in more than 70,000 visitors into Kona International Airport, he said.

“This flight is the connection between Japan and the island. The relationship between Japan and Hawaii is very close so this is a very tough time for both sides,” Uchiyama said.

The flight was one of 15 international routes Japan Airlines announced in April 2010 it would suspend in order to restructure the company through bankruptcy.

Tsuruta Tetsuro and his wife, Nobuko, were two of the approximately 240 people waiting to board the final Japan Airlines flight out of Kona Friday. The couple, from Fukuoka, Japan, said they are regular visitors to the island and will continue to visit even though the direct flight has been suspended.

“It’s a pity it will make it a little more inconvenient to travel here,” Tsuruta said. “We will miss this flight, but JAL will get better soon, and they will bring back this flight.”

ML Macadamia loses $118,000 in quarter

ML Macadamia Orchards LP said today its loss narrowed in the second quarter to $118,000 from $291,000 in what is usually one of the year’s lowest harvest periods.

There was no harvest and there were no macadamia nut sales for the three months ended June 30.

Revenue fell 38.9 percent to $626,000 from $1 million a year ago.

ML Macadamia loses $118,000 in quarter – Hawaii News – Staradvertiser.com