Acreage Holdings, a multistate marijuana operator, signed a sale-leaseback deal valued at additional than $72 million for cannabis facilities in a number of states with GreenAcreage Genuine Estate, a genuine estate investment trust (REIT) that focuses on the MJ space.
New York-primarily based Acreage Holdings stated on Friday it currently closed bargains with GreenAcreage for facilities in Florida, Massachusetts and Pennsylvania. The 3 facilities have a total of 182,015 square feet.
Inside the subsequent 30 days, Acreage Holdings and the REIT, also primarily based in New York, strategy to close bargains on facilities in Illinois and Connecticut.
GreenAcreage has committed to funding up to $43.9 million for the properties in Florida and Illinois, which could bring the total price of the bargains to $77.three million. Of that, $72.three million would be allocated to Acreage Holdings.
As component of the transaction, GreenAcreage paid $five million to an unidentified third celebration as component of the transaction.
Acreage Holdings signed a lengthy-term lease with GreenAcreage for the facilities.
“Acreage Holdings by no means intended to be a genuine estate firm, and as the cannabis business is a capital intensive organization, tying up capital that can be deployed elsewhere,” Glen Leibowitz, chief monetary officer of Acreage Holdings, stated in a statement.
“This is however one more instance of a nonequity, nondilutive financing, which cannabis businesses are increasingly needing to use as each the public and private equity markets are drying up,” stated Mike Regan, an equity analyst for Marijuana Business enterprise Daily’s Investor Intelligence.
Acreage Holdings earlier disclosed it has a 20% interest in the privately held GreenAcreage.
In Might, Acreage Holdings announced it had signed a letter of intent to sell its genuine estate assets and lease them back from the newly formed GreenAcreage.
In August, GreenAcreage raised $141 million.
Acreage Holdings trades on the Canadian Securities Exchange as ACRG.U and on the more than-the-counter exchanges as ACRGF.
For additional on the most current deal with Acreage Holdings, click right here.