1933 Industries Inc. (OTCMKTS:TGIFF) has announced that its subsidiary Alternative Medicine Association has finalized a sale and lease back transaction for the Las Vegas cannabis cultivation facility that was recently constructed. 1933 Industries owns 91% of Alternative Medicine Association.
Sale Transaction and 10 years lease-back agreement
The company has already received $10.45 million from the Sale Transaction which is subject to a $0.5 million that shall be released once the facility is completed and permanent occupancy permits issued. An additional $0.25 million will also be withheld and it will be released once the facility is issued with local and state permits. Alternative Medicine Association is expecting to receive all approvals and permits for full cultivation within one and half months. The Sale Transaction will also include then 1.39 acres of land where the cultivation facility sits on.
There is also a lease-back agreement in the Sale Transaction that will run for 10 years with the option of extending the lease for another two more periods of 5 years each which will thus ensure company activities in the location continue in the long-term.
The company has also reported that it has been issued with a Temporary Occupancy permit for the Las Vegas facility.
Proceeds to be used in funding cannabis market acquisitions
CEO and President, Brayden Sutton stated that they were delighted to conclude the Sale Transaction and capitalize on the company’s real estate assess to improve on growth. The CEO indicated that the company funded the acquisition of the land where the facility is constructed and even carried out the construction without incurring debt. Therefore all proceeds from the sale shall be available to the company as working capital and they will use the same to fund key acquisitions in the cannabis market.
Sutton sated that they have been successful because of the diligent adherence and proficient allocation of capital as well as the proper operational practices that has enabled the company to maintain a robust financial position that will enable the company move to the next level.