PHOENIX, Aug. 31, 2021
PHOENIX, Aug. 31, 2021 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”), a vertically integrated, cannabis dispensary franchisor and operator that produces premium, award-winning products, has entered into a $19 million construction-financing loan with Pelorus Equity Group (“Pelorus”), the leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate.
The proceeds will be used to expand the master site development of the Company’s cultivation and lab site in Coolidge, Arizona (the “Arizona Facility”) as well as completion of its existing 20,000 square foot facility in Pahrump, Nevada (the “Nevada Facility”) . The Company has been cultivating and manufacturing a range of premium Item 9 Labs cannabis products at the Arizona Facility since 2017. The Nevada Facility will become operational in early 2022.
Of note, this transaction is not dilutive to shareholders as there is no equity being issued.
Arizona Master Cultivation Site Expansion
The proceeds from Pelorus’ high-performance loan will be used to finance the acquisition of 45 acres of land adjacent to the Company’s existing 19,200 sq. ft. Arizona Facility. The Company currently owns the 5 acres that house the existing facility, which includes two steel buildings. The master site development consists of six additional steel buildings (just under 10,000 sq. ft. each) – one will be for expansion of the lab and support space for finished product, and the other five will be for indoor cultivation – as well as 16 greenhouses and 6 headhouses (or greenhouse support buildings). Once complete, the Item 9 Labs site will comprise 640,000-plus sq. ft. of operations space. This includes 5 acres of outdoor cultivation, which comes at an opportune time as the city of Coolidge passed regulations for outdoor cultivation earlier this year.