Marijuana Business Magazine January 2020

Marijuana Business Magazine | January 2020 22 By Omar Sacirbey Acreage Inks $72 Million Real Estate Deal Multistate marijuana operator Acreage Holdings signed a sale-leaseback deal valued at more than $72 million for cannabis facilities in several states with GreenAcreage Real Estate , a real estate investment trust (REIT) that focuses on the cannabis space. Acreage Holdings already closed deals with GreenAcreage for facilities in Florida, Massachusetts and Pennsylvania. The three facilities have a total of 182,015 square feet. The two New York-based firms planned to close deals on facilities in Connecticut and Illinois before the end of the year. GreenAcreage committed to funding up to $43.9 million for the properties in Florida and Illinois, which could bring the total cost of the deals to $77.3 million. Of that, $72.3 million would be allocated to Acreage, which signed a long-term lease with GreenAcreage for the facilities. GreenAcreage paid $5 million to an unidentified third party as part of the transaction. Florida Real Estate Deal Innovative Industrial Properties (IIP), a marijuana- focused real estate investment trust, paid $17 million to Trulieve Cannabis for a five-building cultivation facility in Florida. Trulieve will lease the 150,000-square-foot marijuana cultivation centers in Quincy, Florida, back from IIP. The initial lease is for 10 years, with the rent equal to 11% of the purchase price. Trulieve, based in Tallahassee, Florida, has two options to extend the lease by five years each, or another 10 years total. Earlier this year, IIP signed a sales-leaseback deal with Trulieve for a 150,000-square-foot industrial facility in Holyoke, Massachusetts. In that deal, the purchase price was $3.5 million. IIP will reimburse Trulieve up to $40 million for improvements to the building. Dallas Hemp Firm Raises $5 Million Dallas-based Freedom Leaf Health closed a $5 million convertible note financing led by an affiliate of Merida Capital . Financing proceeds will primarily support the company’s production, marketing and sales efforts. The financing is in the form of a unit consisting of a three-year senior unsecured note accruing interest at 8%, convertible at the holder’s option into the company’s common stock at 20 cents per share, and a three-year warrant to acquire shares of the company’s common stock. Nevada Brand Strikes California Agreement Flower One , a cultivator, producer and brand-fulfillment partner in Nevada, announced a partnership with Cookies , a vertically integrated California cannabis company founded in 2012. Flower One’s Cookies-branded products are expected to be available in dispensaries throughout Nevada in early 2020, including the Cookies, Lemonnade, Powerzzzup, Grandiflora, Runtz and Minntz brands. Michigan Grower-Retailer Raises $16.5 Million C3 Industries , a cannabis producer and retailer based in Ann Arbor, Michigan, raised $16.5 million in private financing. The firm raised more than $25 million in 2019, including the most recent financing round. Madison Square Park Capital , an institutional investor based in New York City, led the most recent financing round. C3 will use the funds for: • Additional production capacity in Michigan, where it already has a 35,000-square-foot cultivation and manufacturing facility. The company also will open a network of its dispensaries, branded as High Profile, across Michigan. • Construction of a hydrocarbon extraction lab in Oregon, where the company has a 36,000-square- foot cultivation facility, plus a High Profile retail store in Portland. • Construction of a 37,000-square-foot cultivation and manufacturing facility in Franklin, Massachusetts. The company also submitted applications for cultivation, processing and retail medical MJ licenses in Missouri. Binske Parent Goes Global With Canadian Deal Denver-based Praetorian Global , the parent company of the Binske cannabis brand and the Alchemist CBD brand, announced its entry into international markets through a partnership with Aurora Cannabis in Alberta, Canada. Aurora will license Binske’s intellectual property from Praetorian as part of its foray into the U.S. DEVELOPMENTS Company News | U.S., Canada & International Recent deals, acquisitions and other announcements from cannabis companies