A US multi-state operator (MSO) is moving forward with an arm’s length sale of assets to a cannabis real estate investment trust (REIT) firm.
On Monday (May 13), Acreage Holdings (CSE:ACRG.U, OTCQX:ACRGF) confirmed its plan to sell cannabis-related real estate assets to GreenAcreage Real Estate (GARE); they will then be leased back to Acreage.
The REIT firm is managed by GreenAcreage Management, a business operation in which Acreage holds a 20 percent interest.
According to the initial deal between the two firms, GARE is set to buy mutually agreed upon properties.
“Acreage would also grant GARE a right of first offer to assume Acreage’s position as a purchaser of a pipeline of properties over the next three years,” GARE informed shareholders.
The operations of GARE and its parent company will still be independent from Acreage’s team.
Shares of Acreage dipped in Monday’s trading session by 6.72 percent to finish with a price of C$18.75.
In April, the duo confirmed a US$3.4 billion deal granting Canopy Growth the right to buy Acreage at a time when cannabis is federally legal in the US.
Canopy will not dictate the decision making done by Acreage until the time the acquisition closes.
However, the synergy between the two can’t be dismissed. Bruce Linton, co-CEO of Canopy, told Bloomberg his company is considering options to monetize its asset portfolio.
“It could be anything from a bond to a mortgage to an REIT,” he told the news outlet in February. “I’d like to use that money to build in five more countries rather than look at it and go, ‘Yep, that’s all ours, we own it.”’
MedMen elected to participate in the launch of Treehouse, which will manage the MSO’s real estate assets in the US. Treehouse is getting a three year right of first offer for other MedMen-owned facilities and development projects.
Cannabis REIT executive breaks down real estate play
In a wide-ranging April interview with the Investing News Network Paul Smithers, CEO of Innovative Industrial Properties (NYSE:IIPR), said his company enjoyed a period of exclusivity for cannabis-related REIT play exposure, but that this is about to change.
“We definitely expect some competition, but to date, the only real challenge we see for some of our programs is still the private equity money that some growers will go to,” Smithers said at the time.
His firm is focused on signing property lease deals for medical cannabis facilities in the US.
The executive explained that the company does not seek ownership stakes in the firms it leases to as a way to maintain its New York Stock Exchange listing.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).