Metrospaces Inc (OTCMKTS:MSPC) does not want to miss out on the next cannabis wave. The firm is executing acquisitions aimed at putting it at a strategic advantage. The firm entered a joint venture agreement with LBCC Group to acquire and run a cannabis facility.
According to Oscar Brito, Metrospaces Executive President, the company does not have expertise in the cannabis industry. However, he noted that they have great experience in financing real estate through joint venture partnerships.
Metrospaces to take care of equity
“We don’t have the industry expertise to operate a cannabis facility, but we do have extensive experience in construction, acquisition development, financing and repositioning of real estate assets,” said Brito.
The Executive President says that his company can construct and develop acquired properties. However, it will rely on the other partners in the venture to help run the newly acquired cannabis facilities.
In the new agreement with LBCC Group, Metrospaces will take care of equity necessary for completion of the acquisition. Particularly, the agreement puts the responsibility at $20 million. Further, the agreement allows Metrospaces Inc to keep 75% of the business in the initial stages. However, the other partner add more equity subject to “achievement of certain financial goals.”
Real estate boom
Metrospaces just joined the cannabis industry this year. The company hopes to capitalize on the expected growth of the market as more countries legalize cannabis. In particular, this year marked a watershed moment in the industry with Canada allowing for both medical and recreational use.
Metrospaces believes that the real estate space will play a huge role in the growth of the industry. In essence, firms will need production facilities and other real estate for uses like storage. As such, it is the firm’s intention to play a critical part in the facilitation of the growth.
In particular, the firm notes that the cannabis sector has already taken up 8.7 million square feet. Interestingly, this is just 9 months after legalization. With the market set to expand further through 2023, it is obvious that more space will be on demand.
