American Green sells California 'marijuana mecca' town, but pot - FOX5 Vegas - KVVU

American Green sells California 'marijuana mecca' town, but pot plans persist

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More than a year after purchasing a small town at the edge of the Mojave desert in hopes of developing a one-of-a-kind marijuana mecca, cannabis company American Green has transferred its holdings to a gas and oil company. (Gai Phanalasy / FOX5) More than a year after purchasing a small town at the edge of the Mojave desert in hopes of developing a one-of-a-kind marijuana mecca, cannabis company American Green has transferred its holdings to a gas and oil company. (Gai Phanalasy / FOX5)
NIPTON, CA (FOX5) -

More than a year after purchasing a small town at the edge of the Mojave desert in hopes of developing a one-of-a-kind marijuana mecca, cannabis company American Green has transferred its holdings to a gas and oil company. 

American Green Inc. sold its holdings to Delta International Oil & Gas, Inc. for $7.7 million. A spokesperson for American Green said the company did not have the money to remake the town and stay on schedule. The new partnership will allow that.

"We would have kept moving forward but now what we could do in three months would have taken us a year," American Green spokesperson Stephen Shearin said. He said the facilities inside the resort are functional and will have even more amenities come summer.

"There's a lot of layers that go into it," Shearin said. "The bigger [the project is] the better it is to have partners. It's a lot of work. It's a lot of capital intensity."

Delta International assumed $3.7 million in debt as a result of the acquisition and gives American Green $4 million in preferred Delta stock. 

A spokesperson for Delta International said the company has been looking to transition out of the oil exploration business for some time and was looking into options including the cannabis industry.

The spokesperson said, "the timing was evidently perfect because Delta is in an ideal position to leverage their existing resources and will be able to raise the capital needed for the on-going expansion and development plans in Nipton far more efficiently and economically than American Green under the current circumstances."

American Green will continue to manage the project in Nipton and Delta National will provide "less costly capital to the ongoing projects while supervising the expanding efforts."

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