Power REIT, Inc. (NYSE:PWER), a real estate investment trust focused on renewable energy, announced today that it has signed an Asset Purchase Agreement to acquire an interest in a Michigan-based company that is constructing a cannabis cultivation facility. Frontier Financial Group Capital Corporation (“FFG Capital”), a company that has been providing financial services to the cannabis industry, will be the non-controlling partner in the cannabis cultivation facility. FFG Capital will pay $15.0 million in cash at closing, of which $9.5 million will be used by FFG to fund the construction of the cultivation facility, and the remaining funds will be distributed to FFG Capital in proportion to FFG Capital’s ownership interest
There’s an interesting new development in the MMJ industry. Today, we’ll tell you about a company that wants to build a 59,000 square foot cultivator, which will allow them to expand across the state. (Name of Company) is a real estate investment trust (REIT) with a plan to offer investors a way to invest in the Michigan cannabis industry. The company recently announced that it has entered into an agreement with (Name of Company) to purchase a building in the city of Ann Arbor that will serve as a cannabis cultivation facility.
Power REIT has signed an agreement to purchase a 522,530 square foot cultivation and processing facility for $18.5 million
The greenhouse will serve as a regulated cannabis cultivation and processing facility in Michigan and will be the largest of its kind in the state of Michigan and one of the largest in the United States. Old Bethpage, New York, 25. May 2021. (GLOBE NEWSWIRE) Power REIT (NYSE-AMEX:PW and PW.PRA) (Power REIT or the Fund) today announced an agreement to acquire Michigan’s largest cannabis cultivation and processing facility under glass (the Facility) for approximately $18.5 million. Strategically located in an area where unlimited cannabis licenses can be obtained, the facility includes 522,530 square feet of high-tech greenhouse and processing space. The site of approximately 66 hectares allows for a significant expansion of the area for cultivation and processing of the products. There are plans to add 330,236 square feet in a possible next phase. This modern complex is equipped with modern greenhouse crop management systems and a modern irrigation and fertilization system. This is a plug and play business that is ready for immediate growth and offers an attractive quick income opportunity. Power REIT is finalizing a budget for an upgrade that will improve the efficiency of cannabis cultivation. A Power REIT has a due diligence period of approximately 75 days, followed by a 30-day period to complete the transaction, which can be extended by another 30 days. Power REIT is actively working on due diligence and hopes to expedite the completion of the transaction, although no assurance can be given as to when or if the transaction will close. David Lesser, Chairman and CEO of Power REIT, stated: This acquisition is an excellent growth opportunity for Power REITs. Like our other ecologically controlled farmland, this site has significant expansion potential. Once operational, it will be one of the largest cannabis cash operations in the United States, even before expansion. With this potential acquisition, Power REIT enters the Michigan market, which is currently experiencing a surge in cannabis sales at prices above the national average. The acquisition fits with Power REIT’s sustainable investment strategy of growing in a greenhouse, which has lower costs and a much smaller carbon footprint than growing in industrial premises. Thanks to our flexible balance sheet, our extensive network and our targeted investment strategy, we were able to seize this opportunity.
David Lesser, Chairman and CEO, Power REIT
As the details of the transaction become clearer, we will be able to more accurately determine the effect on core FFO, but for now, we expect the return to be broadly similar to recent transactions that would have significantly increased core FFO. We look forward to further updates as more information becomes available. SUSTAINABILITY DECLARATION Power REIT owns properties related to infrastructure assets, including agriculture in a controlled environment (CEA), renewable energy and transportation facilities. CEA facilities, such as. B., are an extremely environmentally friendly solution, since they consume about 70% less energy than indoor cultivation, which does not benefit from free sunlight. CEA facilities use 90% less water than crops in the field, and all of Power REIT’s greenhouses operate without the use of pesticides and avoid agricultural runoff of fertilizers and pesticides. These facilities grow medicinal cannabis, which is recommended for a variety of medical symptoms, including seizures and convulsions, multiple sclerosis, post-traumatic stress disorder, migraines, arthritis, Parkinson’s disease and Alzheimer’s disease. Renewable energy assets consist of land and infrastructure related to industrial-scale solar farms. These projects generate electricity without using fossil fuels, thus reducing carbon dioxide emissions. The solar farms produce about 50,000,000 kWh of electricity per year, enough to power about 4,600 homes with no carbon emissions. Transportation assets consist of land connected by rail, an environmentally friendly way to transport bulk goods. ABOUT MOTORISED DRIVING Power REIT is a specialized real estate investment trust (REIT) that owns infrastructure assets related to sustainable real estate, including environmentally friendly agriculture, renewable energy and transportation assets. Power REIT is actively seeking to expand its portfolio of agriculture-related properties in a controlled environment for growing food and cannabis. For more information on Power REIT, please visit their website at www.pwreit.com. Original press release Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. New Cannabis Ventures is committed to gathering quality content and information about leading cannabis companies to help our readers filter through the noise and stay informed about the most important news in the field. Do you have sensitive information? Please contact us.