LAS VEGAS and CHICAGO, Oct. 15, 2019 /PRNewswire/ -- Freehold Properties, a newly formed real estate investment company focused on specialized agricultural, industrial and cannabis properties, and Revolution Global, a Chicago-based multi-state cannabis operator, today announced that Freehold will provide Revolution up to $28.75 million in real estate capital expansion funding. Utilizing the capital from Freehold, Revolution plans to more than double the capacity of its flagship cultivation facility.
Revolution currently leases a 75,000-square-foot cultivation facility on over 70 acres in Delavan, Illinois. Revolution plans to construct a new sister 75,000-square-foot indoor facility and additional greenhouse space on the existing site. Freehold's leasehold mortgage will fund development costs for the expansion project. Over a period of nine to twelve months, Revolution is expected to make draws on the leasehold mortgage. Rent will accrue during the construction period, and Freehold has an option to purchase all of the existing facilities for $30 million by March 2021.
Statement from Don Brain, Co-Founder, Chairman and CEO of Freehold Properties: "Revolution's state-of-the-art Delavan facility is among the largest producers of medical cannabis in Illinois. With adult-use recreational sales beginning in January 2020, we believe Illinois's cannabis sector is poised for exponential growth. Revolution's integrated multi-state platform positions them to thrive in Illinois, while the recent addition of Florida and negotiations to expand into other states further diversifies their growth. The financing we provided is tailored to their growth needs and provides Freehold access to a proven multi-state operator in a highly coveted market."
Statement from Mark de Souza, CEO of Revolution Global:
"Revolution is thrilled to be working with Freehold on the next phase of our Delavan expansion. As the Illinois cannabis sector feverishly prepares for adult-use, Revolution sees enormous potential to grow and lead in an exploding industry. With expertise in cannabis and agriculture and an understanding of the unique needs of companies operating in the sector, Freehold is uniquely qualified to partner with Revolution. We are grateful for their support and belief in Revolution and its mission."
About Freehold Properties
Freehold Properties is a newly formed, internally managed real estate investment company that invests in specialized agricultural, industrial and cannabis properties leased to experienced, multi-state-licensed operators. The Company's management team, board of directors and strategic advisors have extensive experience in the cannabis industry and in founding and operating a publicly traded real estate investment trust. Freehold's investment strategy includes a focus on best-in-class and well-capitalized multi-state operators (MSOs) with vertically integrated property types from cultivation to production to retail dispensary.
About Revolution Global
Based in Illinois, Revolution Global is an industry-leading, multi-state cannabis operator that is revolutionizing the way legal cannabis is scientifically designed, grown, sold, packaged, and consumed. Focusing on health and wellness solutions, Revolution uses a best-in-class cultivation process, informed by genetic research, to produce superior cannabis medicine and a wide variety of cannabis-driven consumer packaged goods, from food and beverages to topicals and pet products. In addition to Illinois, Revolution also operates in Florida, Arkansas and Maryland. For more information, visit www.revcanna.com.
Forward Looking Statements
This press release contains statements that Freehold Properties, Inc. believes to be "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding Revolution Global, the leased properties set forth above and the overall real estate market, are forward-looking statements. When used in this press release, words such as we "expect," "intend," "plan," "estimate," "anticipate," "believe" or "should" or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, such as changes in the overall real estate market and U.S. economy, that could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Therefore, you should not rely on any forward-looking statements. Freehold Properties, Inc. disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Freehold Properties, Inc.