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There are two ways Investors can make returns on KKOG: 1. Cannabis income → Each month, earn your share of any Net Income from the cannabis grow and sale. We call these Quarterly Distributions, and they are paid into your KKOG Wallet where they can be withdrawn or used to reinvest. Note: You must own Bricks at 11.59pm on the last day of the month to be eligible for that month’s distribution. (I.e. Each Brick costs $300, that Brick equates to 1 pound of cannabis, each pound is sold for between $1000-$1500 USD, the property costs to grow that pound is roughly $300-400 depending on the property, state taxes etc. The difference of the sales price minus the costs = Cannabis Income. Each brick returns cannabis income every grow cycle which is roughly every 4 months. So every 4 months the 1 brick investment of $300 will see a Cannabis Income 3X a year. Purchase a Brick for $300= $300 Total investment Hypothetical Cannabis Income Calculation $1000 (sale price per pound) MINUS $400(cost to grow a pound) = $700 Cannabis Income every 4 months or $2100 USD Hypothetical Cannabis Income Calculation $1500 (sale price per pound) MINUS $400 (cost to grow a pound) = $1100 Cannabis Income every 4 months or $3300 USD 2. Capital returns → You also have the potential to earn capital returns from the sale of your Bricks (and/or the sale of the underlying property growth.) Capital returns are based on the difference between what you paid for the Brick and what you sell it for, which can either be positive or negative. Properties are valued twice a year to help give guidance on price. Monitor your Portfolio here to check your total return on investment.
KKOG has a simple fee structure KKOG charges a 1.75% transaction fee when you buy or sell your Bricks. In addition, as part of an individual property’s expenses, a 6% property management fee is deducted from the Gross Rental Income of each KKOG Trust (before making distributions to Brick Holders, if any), and $75 per property per month fee (equating to $0.0075 per Brick per month) to cover annual audit and valuation services. See “How are distribution calculated and paid?” question.
Each KKOG property is held in a separate trust by an external Trusteeand independent Custodian and KKOG as sub-custodian. The Responsible Entity and Truste has appointed KKOG as Manager of the KKOG Platform. KKOG does not hold any of the properties. KKOG is an authorized representative of KKOG Financial Services Limited for the purposes of providing general financial product advice and dealing services in relation to interests in managed investment schemes (which includes Interests and Bricks). KKOG is the owner of the technology and website behind the KKOG Platform. In the event that KKOG’s business was to fail, or cease, Trustee would see to appoint another manager of the scheme, or wind the scheme up (which would result in the selling of individual properties and returning of funds after costs).  
While the KKOG Platform has many benefits, there are also a number of risks associated with investing in the Platform which may lead you to lose all or some of your investment. It is important that you understand the risks before you invest. The value of your Bricks can go up as well as down due to a number of reasons such as: general market risks economic risks market risks cannabis valuations disaster and insurance risk counterparty risk lack of liquidity gearing risk limited operating history risk reliance on platform technology legal and regulatory risk Additional risks may exist other than those identified which should be considered in light of your personal circumstances. If you have any queries or uncertainties, please consult your financial advisor before deciding whether to invest or increase your investment. Please read for further details of some of the risks to consider when deciding whether to invest in the KKOG Platform.
Affordable access-KKOG is creating access to property investment at affordable and accessible amounts. You need a minimum deposit of $75 to begin investing in KKOG, the minimum investment in KKOG is the minimum price of a single Brick. No property management hassle- KKOG manages the properties listed on the KKOG Platform, and you have absolutely no property management obligations. Monthly distributions and Capital Returns- Each Brick you own entitles you to a proportionate share of the property’s net income. In addition, the KKOG Platform allows investors to claim any benefits of the relevant property’s capital returns when either the Brick and/or the property is sold. Disclosure and control-The KKOG Platform provides information about each property, which assists you to form a view and acquire Bricks in the individual properties that you select. This is different to traditional property investment products, which may consist of a number of pooled properties, where the investor cannot choose which properties are invested in. Diversification- The KKOG Platform facilitates the ability to spread portfolio exposure, thus offering you the opportunity to reduce and manage the associated investment risk. Support and expertise-The KKOG Buying Team has market knowledge in the targeted geographical regions KKOG considers investments in. With their expertise, properties are selected in locations across the world in cities to optimizeyields and capital returns. In addition, KKOG enlists experienced industry professionals, who form The Adviser Panel, to contribute to the acquisition strategy. Once acquired, KKOG (or its partner agents) regularly reviews each property from the perspective of selection, grow potential, sales potentialand yield. See the Property Team Page for more information on the acquisition strategy.
The KKOG Platform is an online cannabis greenhouse property investment platform designed to make cannabis investment more accessible and affordable for investors. The KKOG Platform empowers investors to invest and transact in indirect part ownership of underlying greenhouse properties in units called Bricks and enjoy the benefits of reduced investment processes and costs. As an investor in Bricks you can benefit from the quarterly income* and/or capital returns** of your cannabis investment properties without being concerned with the hassle of growing, selling, and managing them. You receive regular valuation updates of your KKOG holdings, as well as access to each property’s historical and suburb data, due diligence documents and investment cases. In addition, the KKOG Platform allows you to list your Bricks for sale when you decide. * In the event that cannabis income does not cover expenses ** Property values and the Brick Price can rise as well as fall, resulting in both positive and negative capital returns. Past performance is no guide to future performance.
The KKOG Platform is an online platform that allows you to invest by purchasing a Brick in a cannabis greenhouse property of your choosing. KKOG seeks out properties across the world that, in KKOG's opinion, demonstrate the potential for positive investment income and capital returns. Once purchased, the property is held by KKOG unit trust. Each KKOG Trust holds a single investment property, that is then split into 10,000 units or Bricks, which are then made available to buy on the KKOG Platform by registered KKOG Members. Each Brick you own entitles you to your proportionate share of any quarterly distribution from the cannabis income of the underlying property, after the payment of all related interest and costs. (see “How are distributions calculated and paid?” question). It also entitles you to potential capital returns, which can be tracked with regular valuations and KKOG Price information that is published on each property (see “Will I benefit from capital growth?” question). You have access to detailed information on each property about its condition, type, location, suburb historical returns, independent valuations and a dedicated investment case. This information provides you, the Brick Owner, with visibility and control over your investment. Properties are selected by the KKOG Property Team, which includes a team of a highly experienced cannabis investment and property professionals, whom meet regularly to analyze and develop the ongoing acquisition and investment strategy. Please see our Property Team Page to learn more.
A Brick is the term we use to describe an interest (unit) in a KKOG Trust. Each KKOG Trust holds a single cannabis property that is split into 10,000 Bricks which are then made available for purchase. A Brick therefore represents 1/10,000 of the beneficial interest in the underlying property, and gives the Brick Holder a proportionate entitlement to any benefits generated after the payment of all property related costs. It is important to note that a Brick is not a direct investment in the property, but rather an indirect investment in the underlying property in the trust. Benefits may include a potential to receive distributions from any net income of the property, and the potential to realize capital returns on the sale of your Bricks and/or the underlying property. You must hold at least one Brick to be entitled to a share of these benefits. The minimum investment in Bricks per property is the minimum price of a single Brick, and you can buy Bricks in multiple properties where available on the KKOG Platform. The maximum number of Bricks you may hold in any single KKOG trust is 10% (or 1000 Bricks). There are some important differences between owning Bricks in a property on theKKOGPlatform and owning a property directly, which include: a Brick Holder that holds Bricks does not have any direct control over who manages the property; a Brick Holder will not have any right to redevelop, sub-divide or otherwise make changes to the nature or use of the property; a Brick Holder cannot pledge the property as security for debt; and a Brick Holder will not be able to unilaterally determine when the property is sold (see “When is a KKOG property sold?” question). View our Property Listings to see current Brick prices.
Affordable access- KKOG is creating access to property investment at affordable and accessible amounts. You need a minimum deposit of $75 to begin investing in KKOG, the minimum investment in KKOG is the minimum price of a single Brick. No property management hassle- KKOG manages the properties listed on the KKOG Platform, and you have absolutely no property management obligations. Monthly distributions and Capital Returns- Each Brick you own entitles you to a proportionate share of the property’s net income. In addition, the KKOG Platform allows investors to claim any benefits of the relevant property’s capital returns when either the Brick and/or the property is sold. Disclosure and control- The KKOG Platform provides information about each property, which assists you to form a view and acquire Bricks in the individual properties that you select. This is different to traditional property investment products, which may consist of a number of pooled properties, where the investor cannot choose which properties are invested in. Diversification - The KKOG Platform facilitates the ability to spread portfolio exposure, thus offering you the opportunity to reduce and manage the associated investment risk. Support and expertise - The KKOG Buying Team has market knowledge in the targeted geographical regions KKOG considers investments in. With their expertise, properties are selected in locations across the world in cities to optimizeyields and capital returns. In addition, KKOG enlists experienced industry professionals, who form The Adviser Panel, to contribute to the acquisition strategy. Once acquired, KKOG (or its partner agents) regularly reviews each property from the perspective of selection, grow potential, sales potentialand yield. See the Property Team Page for more information on the acquisition strategy.
While the KKOG Platform has many benefits, there are also a number of risks associated with investing in the Platform which may lead you to lose all or some of your investment. It is important that you understand the risks before you invest. The value of your Bricks can go up as well as down due to a number of reasons such as: general market risks economic risks market risks cannabis valuations disaster and insurance risk counterparty risk lack of liquidity gearing risk limited operating history risk reliance on platform technology legal and regulatory risk Additional risks may exist other than those identified which should be considered in light of your personal circumstances. If you have any queries or uncertainties, please consult your financial advisor before deciding whether to invest or increase your investment.  
The KKOG Platform is a cannabis greenhouse property investment platform open to all. The KKOG Platform is designed to provide easy investment access to the cannabis market, empowering you to choose the property and investment that suits your financial needs. Investors may include: First time investors; Existing investors; Accredited Investors Self-Managed Super Funds (SMSF); Investment Syndicates; and Retirees with short/long-term investment time frames. At present, KKOG is authorized to provide our cannabis property investment platform to all, and you must be 18 years or older. The advice provided in relation to the KKOG Platform, including on the KKOG Platform website, is general advice only and has been prepared without taking into account your objectives, financial situation and needs. Before making any decision in relation to KKOG or any products offered by KKOG you should read the Product Disclosure Statement (PDS) and consider whether they are right for you. 
The security of your KKOG Account is of the highest importance to us. We use security technology (including 128 bit Secure Sockets Layer encryption) that allows your personal information to be transmitted securely. We also comply with a Privacy Policy which sets out our procedures for collecting, using and disclosing your personal information.  All client funds are held in a segregated client account, separate to the business activities of KKOG. For more information see “How is my investment held separate from the KKOG business?” question. 
KKOG has a simple fee structure KKOG charges a 1.75% transaction fee when you buy or sell your Bricks. In addition, as part of an individual property’s expenses, a 6% property management fee is deducted from the Gross Rental Income of each KKOG Trust (before making distributions to Brick Holders, if any), and $75 per property per month fee (equating to $0.0075 per Brick per month) to cover annual audit and valuation services. See “How are distribution calculated and paid?” question. 
KKOG will communicate with you via a variety of ways, primarily through direct email, on live chat through the Platform, or by phone. Should you ever need assistance you are welcome to contact us here
On the KKOG Platform you have access to live chat support from Monday - Friday between 9:00am to 5:00pm (PST). You can also get in touch via the Contact Us form, email the Customer Services Team at info@@kkog.io or call us on +02 123456
Account details and settings can be updated by logging into the Settings section within your KKOG Account. Within this section you are able to enter and/or update your info, bank account, marketing preferences, deactivate your Account, and change your Account password. If you need any assistance in updating your personal details, please do not hesitate to Contact Us here.
Before you can deactivate your KKOG Account, you need to sell all of your Bricks, and withdraw all of your funds from your Wallet. Once your KKOG Account is empty you can deactivate it yourself by checking the ‘Deactivate’ box in your Settings section or you can Contact Us for assistance. Once your KKOG Account is deactivated, you are no longer a Member and will need to reapply in order to participate in the KKOG Platform.
Your Digital Wallet (also referred to as ‘Wallet’ on the Platform) is an arrangement between you and KKOG under which KKOG holds money you deposit, or receive (either through distributions or the sale of Bricks) on trust for you. Once you register on the Platform, KKOG will set up your Wallet. Fund transfers into your Wallet are made via external third party payment gateways that support every major bank. The transfers can take between 2-3 business days to complete. Once you deposit funds, KKOG may, at its discretion, advance an amount equal to some or all of the funds deposited to your Wallet (to a maximum value of $20,000) ahead of the funds transfer being completed, for the purpose of allowing you to buy Bricks. During this period, you will only be able to buy (and not sell) Bricks. Once the deposit is cleared and complete, your ability to sell Bricks and withdraw funds will be enabled. In order to buy Bricks and receive the proceeds from the sale and/or distributions from Bricks you must have a KKOG Account and a Wallet. When buying or selling Bricks your Wallet will be debited or credited (as applicable) with all funds required to settle the transaction. You can withdraw money from your Wallet into your nominated personal bank account by logging into your KKOG Account.
Unfortunately, not. KKOG is only available to those who are 18 years and over.
Setting up your KKOG account is simple. Begin by signing up and verifying your email. You will then be asked to accept the KKOG Terms & Conditions. Now you will be ready to begin depositing funds and start investing! Sign up now 
First, we will ask for some personal information in order to verify your identity. We offer two payment options to KKOG investors and there are no fees to you to use these services. Wire transfer allows you to instantly transfer funds from your A bank account into your KKOG Digital Wallet. Alternatively, you can use credit cards to transfer funds directly from your credit card account, but note that funds will take around 7 business days to be delivered and returns will paid on the 2 ndquarter. There is a minimum initial deposit amount of $75. If you have your KKOG account set up, you can deposit funds here. 
Once your KKOG account is ready and you have deposited funds, you can head over to the propertiespage and decide which investment is right for you. Then you can instantly buy Bricks in the KKOG property of your choosing. Once you have clicked on the View Property button, you will see the property summary page, where you can click Buy Bricks. Don’t forget you’ll need to be signed up and logged in to access this information. Select the number of Bricks you want to purchase, agree to the transaction, and confirm your order. The transaction will process instantly, and you will receive a confirmation email from our team, congratulating you on your purchase! Watch our video to learn more about buying Bricks here
The price of a Brick is determined by supply and demand of Bricks in that property. When you buy a Brick, you are choosing to pay the chosen price. It is important to distinguish between Brick Price and Brick Valuation. The Brick Price is the price at which sellers are willing to sell their Bricks and thus the price at which transactions are executed. The Brick Valuation is a calculation of what an individual Brick is worth based on the total property purchase cost or latest valuation of the greenhouse property. The Brick Valuation does not ‘set’ the Brick price it only acts as a guide for buyers and sellers. For a KKOG property that is newly listed, Bricks are offered at the Initial Brick Price which is based on the initial purchase price and costs. Learn more about pre-ordering Bricks in any new properties.
The minimum investment is the price of a single Brick (plus the transaction costs). We do require a minimum initial deposit of $75 into your KKOG Digital Wallet.
The maximum number of Bricks you can hold in an individual KKOG property is 1000 Bricks, which is 10% of the Bricks in a KKOG property. For example: If you purchase a Brick for $300, the maximum you could invest in that KKOG property would be $300,000. However, reaching this limit in one KKOG property doesn’t stop you from buying Bricks in other KKOG properties.
There are no time restrictions on how long a KKOG investor can hold onto a Brick, so long as the property remains available on the KKOG Platform. (For more information see our question ‘When is a KKOG property sold?’).
If the property is a new listing, the price is set at the Initial Brick Price, which is calculated by dividing the purchase price and associated costs minus any debt by 10,000 (Bricks).
No, buy orders for Bricks are executed immediately, however you can list your Bricks for sale at any time. You can find out more about selling Bricks here
Pre-Ordering allows you to secure Bricks in new properties before they settle on the platform. Pre-Ordering gives you first access to the Bricks, at the Initial Brick Price, so you don’t miss out.  
If the property is a new listing, the price is set at the Initial Brick Price, which is calculated by dividing the purchase price and associated costs minus any debt by 10,000 (Bricks).  
The Platform Settlement Date is the day Pre-Orders are finalized and the Bricks appear in your portfolio. You can view the settlement date on the property’s summary page.  
Allows you the opportunity to reserve Bricks ahead of the property’s settlement date. You can purchase Bricks at their Initial Brick Price. Reserved Bricks can be cancelled at any time prior to settlement, with no fees
All KKOG users that have signed up are notified via email about new property listings and are given the chance to Pre-Order Bricks in that property. Signup now to find out about the next property launch
You can reserve Bricks on the website just as you would normally buy a Brick. Visit a property in Pre-Order Phase, click the Pre-Order Bricks button, and select the quantity of Bricks you wish to reserve. Note that you must be logged in, and have sufficient funds available in your KKOG Wallet to Pre-Order Bricks. Check out the properties page, to see if there are any new properties in the Pre-Order Phase  
Yes, it’s free to cancel a Pre-Order up until the Platform Settlement Date (listed on the property’s summary page). Any fees associated will also be returned to your KKOG Wallet. To cancel pre-ordered Bricks, click on the My Pending Orders section in your KKOG Account, find the order, and select cancel. Note that once you do this, those Bricks are immediately released back onto the KKOG platform for other investors to pre-order. Visit My Pending Orders  
The length of the pre-order phase varies between each new property listing due to the varying settlement dates. A great way to check is by visiting the property’s page, where you will be able to find the settlement date alongside plenty of useful information. For more information on the pre-order phase please follow the link to our education center  
You won’t be able to view the property before the Pre-Order Phase opens However, if your signed up to KKOG you’ll receive important pre-launch emails, related to the investment case and Pre-Order details.
There are two ways Investors can make returns on KKOG: Cannabis income → Each month, earn your share of any Net Income from the cannabis grow and sale. We call these Quarterly Distributions, and they are paid into your KKOG Wallet where they can be withdrawn or used to reinvest. Note: You must own Bricks at 11.59pm on the last day of the month to be eligible for that month’s distribution. (I.e. Each Brick costs $300, that Brick equates to 1 pound of cannabis, each pound is sold for between $1000-$1500 USD, the property costs to grow that pound is roughly $300-400 depending on the property, state taxes etc. The difference of the sales price minus the costs = Cannabis Income. Each brick returns cannabis income every grow cycle which is roughly every 4 months. So every 4 months the 1 brick investment of $300 will see a Cannabis Income 3X a year.   Purchase a Brick for $300= $300 Total investment Hypothetical Cannabis Income Calculation $1000 (sale price per pound) MINUS $400(cost to grow a pound) = $700 Cannabis Income every 4 months or $2100 USD Hypothetical Cannabis Income Calculation $1500 (sale price per pound) MINUS $400 (cost to grow a pound) = $1100 Cannabis Income every 4 months or $3300 USD Capital returns → You also have the potential to earn capital returns from the sale of your Bricks (and/or the sale of the underlying property growth.) Capital returns are based on the difference between what you paid for the Brick and what you sell it for, which can either be positive or negative. Properties are valued twice a year to help give guidance on price. Monitor your Portfolio here to check your total return on investment. For more information, check out this article on Selling Bricks and Realizing Returns here.
The distributions are calculated by the following formula: Gross Income – Property Expenses – (if applicable) any Interest Payments =  Net Income for the Property. Then we divide this Net Income by the 10,000 Bricks and distribute the per Brick amount to each Brick Holder. Note: Each Brick held at 11.59pm on the last day of the month is entitled to a monthly proportion of the rent earned by the KKOG property.
Distributions are paid directly into your KKOG Wallet, where you are free to withdraw the funds or reinvest. We will send you an email notification each quarter when your monthly distribution has been paid into your Digital wallet. Looking to confirm any distribution transactions? Check the Transactions Table in the KKOG Dashboard Looking to see a view of all Distributions paid for current Bricks held? Visit your KKOG Portfolio
Below are some examples of monthly property expenses: State and Municipality Taxes Water rates Material costs Maintenance and management costs Annual audit and valuation costs Property taxes Principal repayments To see the exact break down of property expenses, you can visit the property’s Monthly Distribution tab. Learn more about Property Expenses
Investors could benefit from capital growth if the sale price of their Bricks is greater than the purchase price of those Bricks, and vice versa for a capital loss. For Example: If John buys a gold bar for $1000 and decides to sell it 5 years later at the current market price of $2000 his capital return would be $1000. John’s capital return is the difference between the price he bought the gold and the price he sold the gold for. At the same time the price of gold over this period could have decreased and John would be at a capital loss. Capital Returns = (Current Brick Price – Brick Purchase Price) - Fees The value of properties on the KKOG platform are influenced by a number of factors. This is why we provide semi-annual valuations of each KKOG Property. Note: KKOG Properties are subject to market and supply and demand, which can influence the price at which you buy and sell Bricks.
Once your KKOG account is up and running, you will be able to manage all of your investment information conveniently from your KKOG Account Dashboard. You will be able to list Bricks for sale, track your investment, monitor returns, deposit funds and follow your KKOG Account.  
Yes, returns are taxable. At the end of each financial year, we will provide you with a summary statement of the distributions, interest and depreciation allowances you have earned, net of our fees, to make it easy for you to complete your tax return.
You can sell your Bricks by listing them for sale in the Order Book. To do this, you must place a Sell Order into the Order Book for the relevant property (click Sell Bricks on the corresponding property listing page), specifying the number of Bricks you wish to sell and the sale price per Brick. You can only sell Bricks that you own. The sale price you set must not be less than 10% lower of the latest current Brick Valuation. To assist you in setting your sale price the regular Brick Valuations, property related documents and industry data are available for you to consider. A sale occurs when there is a willing buyer who agrees to purchase your Bricks at the price you have set. You can cancel a Sell Order at any time before it is matched with a corresponding purchase by going to the Pending Sell Orders section within your Account. The proceeds on a completed sale of Bricks will be distributed into your Wallet, less any transaction fees. You can only sell Bricks when there is a buyer willing to purchase your Bricks at the price you set, or when your fellow Brick Holders in a particular KKOG property collectively agree to exit the investment by deciding to sell the relevant property. See question When is a KKOG property sold?, for more information. Where KKOG has advanced you funds while you wait for deposited funds to clear, you will only have the ability to buy (and not sell) Bricks. Once your funds clear, your ability to sell Bricks will be enabled. 
On the KKOG Platform, once listed for sale the median time to sell Bricks is 20h 47m. (measured based on all member to member transactions from 1 June 2018 - Present) Bricks are sold starting with the lowest available price. For example, if you list 5 Bricks at $300 at 9am and another Members lists 5 Bricks at $298 at 10am, the Bricks listed at $298 dollars will be sold first even though they were listed second. Remember that the lowest price you can list Bricks at is 10% less than the latest current Brick Valuation.
There must be a buyer for a sale to be executed. If there is no one to buy your Bricks, your Bricks cannot be sold. To provide further exit opportunities to Brick Holders, KKOG arranges a vote amongst the Brick Holders of a particular KKOG property on the 2nd anniversary of that property’s Settlement Date on the Platform, and each 2 years thereafter, to determine if the Brick Holders wish to sell or maintain the property on the platform. Should over 50% of the Brick Holders in that property agree to the sale of the property it will be put up for sale. In addition, Brick Holders may at any time collectively agree to sell a property and end the investment period of a particular KKOG property.  
You can cancel a Sell Order at any time before it is matched and transacts with a corresponding Buy Order, from within your Pending Sell Orders section in your Account.  
You can withdraw funds from your Wallet by logging into your KKOG Account and making a withdrawal request to your nominated bank account.
All our property acquisitions are based on, in KKOG’s opinion, their potential to provide positive income and capital returns, with the intention of securing you balanced and varied investment opportunities. The properties listed on the KKOG Platform are selected on the basis of meeting investment criteria with a view to optimizingcannabis yield and capital returns. In selecting properties, we focus on: Property characteristics – distinguishing features that add value and robust construction that will provide solid investment longevity and minimum funding. We seek to avoid properties that have facilities (such as a lack of water or elec) which might add to the running costs and may reduce net income. Cannabis capital growth and yield returns - positive historical performance and continued growth expectations are the basis of this criteria. This might include considerations around employment forecasts and the levels of taxation around capital cities, helping us form a view on which cities to focus on, and the right ones within them to invest in. Independent Valuations - these are provided by external parties to validate the investment case. Our Acquisition Strategy - the Property Team reviews the immediate and ongoing needs of the KKOG property portfolio on a quarterly basis, to formulate a strategy to respond effectively to the market, and meet the ongoing needs of the KKOG community. The Property Team - KKOG’s Property Team is drawn from a cross section of professional experience in the cannabis property and investment sectors. It consists of three core teams; the KKOG Property Team, whose purpose it is to seek out investment opportunities, the KKOG Investment Team, who bring years of investment experience into the mix, and The Adviser Panel who are accomplished property market analysts. Our approach to choosing properties may change over time, but overall we seek properties which are, in KKOG’s view, high quality and preferably those in cannabis friendly counties.  
Property Acquisition Costs  There are costs involved in completing a property purchase, which may include, stamp duty, legal fees, buyer’sagent’s fees, trust establishment fees etc. The fees incurred with any property purchase on the KKOG Platform are included in calculating the Initial Brick Price (see What is the price of a Brick? question) All acquisition related costs (including stamp duty and other fees) are amortized regularly over a 5 year period which is reflected in the regular Brick Valuation updates. Cash Reserve    The calculation of the Initial Brick Price also includes a contribution to the relevant KKOG Trust’s Cash Reserve. Each KKOG Trust maintains a Cash Reserve that is approximately 3 months’ worth of expenses payable in relation to the property. It is not anticipated that this Cash Reserve will exceed 3% of the initial value of a KKOG Trust’s assets. The primary purpose of the Cash Reserve is to cover necessary and ordinary expenses (for example, repair and maintenance of greenhouses) arising during a short term vacancy in the property. In addition, the Cash Reserve may be used to pay expenses where billed services extend over a one month period, with replenishment of the Cash Reserve drawn proportionately from gross income in future months. If the Cash Reserve is drawn down, the income will first be applied to replenish the relevant KKOG Trust’s Cash Reserve, which will therefore reduce the net income of the trust and the distributions payable to Brick Holders of that trust for that period. The Cash Reserve is not a guarantee that you will not make a loss on your investment and it is not a risk management product held by the relevant KKOG Trust for your benefit 
KKOG facilitates a meeting of Brick Holders of a particular KKOG property on the 2nd anniversary of that property’s Settlement Date, and each 2 years after, to give Brick Holders the opportunity to choose to sell the property. Should Brick Holders representing over 50% of the Bricks in that property agree to the sale of the property it will be put up for sale. In addition, Brick Holders may at any time collectively agree to sell a property. In addition, where a KKOG property’s expenses cannot be funded from the gross income of the property or issue of additional Bricks, and the Cash Reserve and short-term loan (if any) have been exhausted, the KKOG property may be sold to settle the property’s debts. As with any other sell transaction on the platform, where a KKOG property is sold there is a 1.75% transaction fee deducted from the proceeds.
It is important to distinguish between Brick Price and Brick Valuation. The Brick Price is the price at which sellers are willing to sell their Bricks and thus the price at which transactions are executed. The Brick Valuation is a calculation of what an individual Brick is worth based on the total property purchase cost or latest valuation.  
The Brick Price is the price at which buyers buy, and sellers sell, Bricks. The Initial Brick Price of a new property on the Platform is calculated at the commencement of the Pre-Order phase, as laid out below. Initial Brick Price = (Property Acquisition Price + Material Costs + Cash Reserve – Debt + Other Fees*) 10,000 Once the Pre-order phase is complete (at Settlement Date), the ongoing Brick Price is set. To inform the sale price, KKOG publishes independent semi-annual valuations and relevant industry data on the Platform. It should be noted that Sell Orders will not be accepted at a price that is more than 10% lower than the latest current Brick Valuation. The ongoing Brick Valuation is calculated as follows: Brick Valuation = (Latest Property Value + Unamortized Acquisition Costs* + Cash Reserve - Debt) 10,000 *All acquisition related costs (including stamp duty and other fees) are amortized regularly over a 2 year period. This is reflected in the regular Brick Valuation updates. “Other fees” can include legal fees, buyers’ agent fees, trust establishment and other costs. The calculation of the Initial Brick Price also includes a contribution to the relevant KKOG Trust’s Cash Reserve. See question: ‘What are the property acquisition costs and the Cash Reserve?’ for more information. 
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