Now operating 37 separate dispensaries across the state of Florida, Trulieve Cannabis Corp. (CSE: TRUL OTC: TCNNF) now teamed up with cannabis-focused retail corporation Revolutionary Industrial Properties, Inc (NYSE: IIPR) for a leaseback deal.
Beneath the terms of the deal, Revolutionary Industries Properties (IIP) has acquired home consisting of 5 separate buildings from Trulieve for $17 million.
IIP additional entered into an agreement with a Trulieve subsidiary permitting the home to continue to be utilized as a cultivation facility. Through the course of the 10-year lease, the Trulieve subsidiary will spend 11% of the acquire value in rent every year, with an choice to continue the lease one more 5 years.
Discussing the sale and leaseback deal, Trulieve CEO Kim Rivers had this to say:
It is good to group with IIP once again on this transaction, delivering us the genuine estate capital to continue to expand our capacity in one particular of the biggest and most dynamic healthcare cannabis markets in the U.S. These newly-created cultivation facilities offer optimal controlled environments to provide the highest good quality solutions to individuals all through Florida.
Trulieve had previously struck one more sale-leaseback deal with IIP for home in Holyoke, Massachusetts earlier this year totalling $three.five million, and such as a $40 million reimbursement option as the corporation tends to make improvements to the home.
Functioning with genuine estate investment trusts is one particular way money-strapped cannabis producers have been raising dollars for continuing operations amid regularly disappointing quarterly monetary reporting.
California-based MedMen Enterprises Inc. (CSE: MMEN OTCQX: MMNFF) for instance sold off two properties to Treehouse True Estate Investment Trust, Inc. earlier this year.
The market is also at present seeing a deluge of insider investments, private placements, and rights offerings to raise dollars although riding out continued downward stock value trends.
In other Trulieve news, the corporation was added to the OTCQX Cannabis Index earlier this week soon after meeting monetary, disclosure, and corporate governance typical efficiency benchmarks.
Trulieve has been on a dispensary opening spree this year, taking benefit of Florida’s expanded healthcare cannabis plan that is nearing 300,000 total enrolled individuals. In the final month, the corporation has opened up new areas in each Crucial West and Cape Coral.