CHICAGO, Feb. 19, 2020 /PRNewswire/ -- NewLake Capital Partners, Inc. ("NewLake" or the "Company"), an independent investment vehicle focused on acquiring a diversified real estate portfolio of industrial and retail properties in the cannabis industry, today announced the closing of its sale-leaseback transactions with affiliates of GR Companies Inc. (Grassroots) for six of the ten properties within this portfolio located in six states, which comprise approximately 60,000 square feet of retail space. The Company anticipates the second closing for the four remaining properties to occur within the next forty-five days.
The total purchase price for the ten properties is approximately $15.5 million. The portfolio of ten retail dispensaries consists of nine medical and one adult-use locations across six states. Concurrent with the closing of the first six properties, NewLake entered into long-term, triple-net lease agreements for each property with an affiliate of Grassroots, which intends to continue to operate the properties as licensed dispensary facilities. Grassroots is expected to make certain improvements to the properties, for which NewLake has agreed to provide reimbursement of up to $4.2 million. Assuming full reimbursement for such improvements, NewLake's total investment in the properties will be $19.7 million.
"We are pleased to partner with Grassroots, one of the leading multi-state cannabis operators in the U.S. with a well-respected brand, consumer loyalty and operational expertise," commented Anthony Coniglio, Chief Executive Officer of NewLake. "Our first closing with Grassroots falls in line with our core strategy of aligning ourselves with revenue generating properties in locations within limited license states that have long term visibility on the sustainability and growth of their operations. Grassroots is the third portfolio acquisition NewLake has made in the most recent months with leaders in the space. We look forward to working with the Grassroots team on the second closing and improvements to the property portfolio."
Mitchell Kahn, Chief Executive Officer and Founder of Grassroots, commented, "I want to thank Anthony and his experienced team for working diligently with us during this process. These sale-leaseback transactions have allowed us to leverage our valuable real estate in a non-dilutive manner and provide us with working capital to continue fueling the growth of our operations."
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Preferred Stock or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About NewLake Capital Partners, Inc.
NewLake is an independent investment vehicle focused on acquiring a diversified real estate portfolio of industrial and retail properties in the cannabis industry to be leased to state-licensed operators in limited license states. NewLake has acquired a portfolio from coast-to-coast with tenants across the supply chain including cultivation, manufacturing and retail. NewLake intends to elect to be taxed as a real estate investment trust for U.S. federal income tax purposes once it meets all applicable criteria. For more information please visit www.newlake.com.
About Grassroots Cannabis:
GR Companies Inc. (dba Grassroots Cannabis) is a cannabis company dedicated to serving, advancing and respecting the cannabis movement. Through its unique, vertically integrated business model, Grassroots grows, processes and sells trusted cannabis products that enhance life's moments for people from all backgrounds. Its retail brand, Herbology, offers a unique, wellness and education-focused dispensary experience.
Grassroots Cannabis has built its portfolio at an unprecedented pace, with facilities in highly competitive markets, including Illinois, Nevada, Pennsylvania, Michigan, Maryland, Oklahoma, Ohio, Vermont, North Dakota, Arkansas and Connecticut. The company is pursuing acquisitions in additional markets. The executive management team is composed of a group of highly skilled business leaders united by a common belief: Cannabis inspires us to live deeply. For more information, visit www.grassrootscannabis.com.
Anthony Coniglio, CEO
KCSA Strategic Communications
Valter Pinto, Managing Director
This press release contains "forward-looking statements". Forward-looking statements can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward- looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.
The forward-looking statements in this press release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE NewLake Capital Partners, Inc.