Proceeds of the sale strengthen balance sheet and unlock non-dilutive capital for expansion initiatives
VANCOUVER, May 15, 2019 /PRNewswire/ – 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF) a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp/CBD wellness solutions, is pleased to announce that its subsidiary, Option Medicine Association (“AMA”), has completed a sale and lease back (the “Sale Transaction”) for its newly constructed cannabis cultivation facility in Las Vegas, Nevada.
The buy price tag for the Sale Transaction is USD$10,450,000, which the Corporation has received, topic to a USD$500,000 hold back to be released upon the completion of the facility and issuance of permanent occupancy permits, and a USD$250,000 hold back to be released upon issuance of state and neighborhood permitting for the facility. AMA anticipates receipt of all permits and approvals for complete cultivation operations inside 45 days. The Sale Transaction involves the cultivation facility as nicely as the 1.39 acres of land it sits on.
The Sale Transaction involves a lease-back agreement for a period of 10 years, with the selection to extend the lease term for two further periods of five years every, making certain a lengthy term place for the ongoing cultivation operations of the Corporation.
The Corporation also reports that it has received a Short-term Occupancy Permit for the facility.
We are pleased to comprehensive the Sale Transaction and leverage our true estate asset to assistance our development. We funded the buy of the land and building of the facility without the need of incurring any debt, so the complete sale proceeds are offered for functioning capital and to fund acquisitions in crucial cannabis markets.
Mr. Brayden Sutton, President & CEO
Our diligent adherence to effective capital allocation and sound operational practices has led us to keep a sturdy economic position which will propel us into our subsequent development stage.
About 1933 Industries Inc.
1933 Industries Inc. is a vertically integrated cannabis corporation with operations in the United States and Canada. Operating via 3 subsidiary firms, 1933 Industries owns licensed health-related and adult-use cannabis cultivation and production assets, proprietary hemp-primarily based, CBD infused solutions, CBD extraction solutions and a specialized cannabis advisory firm supporting clientele in safety, intelligence and due diligence. The Corporation owns 91% of Option Medicine Association and 100% of each Infused MFG. and Spire International Technique.
Original press release
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