Proceeds of the sale strengthen balance sheet and unlock non-dilutive capital for expansion initiatives
VANCOUVER, May 15, 2019 /PRNewswire/ – 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF) a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp/CBD wellness products, is pleased to announce that its subsidiary, Alternative Medicine Association (“AMA”), has completed a sale and lease back (the “Sale Transaction”) for its newly constructed cannabis cultivation facility in Las Vegas, Nevada.
The purchase price for the Sale Transaction is USD$10,450,000, which the Company has received, subject to a USD$500,000 hold back to be released upon the completion of the facility and issuance of permanent occupancy permits, and a USD$250,000 hold back to be released upon issuance of state and local permitting for the facility. AMA anticipates receipt of all permits and approvals for full cultivation operations within 45 days. The Sale Transaction includes the cultivation facility as well as the 1.39 acres of land it sits on.
The Sale Transaction includes a lease-back agreement for a period of 10 years, with the option to extend the lease term for two additional periods of 5 years each, ensuring a long term location for the ongoing cultivation operations of the Company.
The Company also reports that it has received a Temporary Occupancy Permit for the facility.
We are pleased to complete the Sale Transaction and leverage our real estate asset to support our growth. We funded the purchase of the land and construction of the facility without incurring any debt, so the full sale proceeds are available for working capital and to fund acquisitions in key cannabis markets.
Mr. Brayden Sutton, President & CEO
Our diligent adherence to efficient capital allocation and sound operational practices has led us to maintain a strong financial position which will propel us