<p><i>Financing to Fund Master Site Expansion in Arizona, including Acquisition of the 45 acres of Adjacent Land Next to the Company’s Existing 19,200 sq. ft. Facility</i></p>
<p><i>Capacity of Arizona Operations to be Enhanced by 33x </i></p>
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.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis franchisor and operator headquartered in Arizona that produces premium, award-winning products. With deep experience in cannabis, franchising, and capital markets, the Company brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. (PRNewsfoto/Item 9 Labs Corp.)
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.