Cannabis operator Acreage Holdings, Inc (CSE:ACRG.U) (OTC: ACRGF) announced Friday the closing of a sale-leaseback deal worth around $72 million with GreenAcreage Real Estate, a cannabis-focused REIT.
Properties and facilities in Pennsylvania, Florida and Massachusetts were funded and closed Friday, and the companies said they expect to close on additional facilities in Illinois and Connecticut within the next month.
The deal calls for GreenAcreage to provide up to about $43.9 million in additional funding to properties in Florida and Illinois.
Acreage has concurrently entered into long-term, triple-net leases with GreenAcreage and will continue to operate licensed cannabis facilities at the properties.
“Acreage Holdings took a long, hard look at our portfolio of real estate holdings and made a strategic decision to rationalize our business strategy. We are in the business of bringing to market the best cannabis products possible and making them accessible to as wide an audience of patients and adult use consumers as is viable,” Acreage CFO Glen Leibowitz said in a statement.
“Acreage Holdings never intended to be a real estate company, and as the cannabis industry is a capital-intensive business, tying up capital that can be deployed elsewhere is not in our shareholders' best interest. By working closely with GreenAcreage, we will be able to focus on our core competencies: growing the plant, processing it into consumer/medical products and building out a network of retail locations across the country.”
Acreage shares were down 0.33% at $5.98 at the close Monday.
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