Now operating 37 separate dispensaries across the state of Florida, Trulieve Cannabis Corp. (CSE: TRUL; OTC: TCNNF) today teamed up with cannabis-focused retail company Innovative Industrial Properties, Inc (NYSE: IIPR) for a leaseback deal.
Under the terms of the deal, Innovative Industries Properties (IIP) has acquired property consisting of five separate buildings from Trulieve for $17 million.
IIP further entered into an agreement with a Trulieve subsidiary allowing the property to continue to be utilized as a cultivation facility. During the course of the 10-year lease, the Trulieve subsidiary will pay 11% of the purchase price in rent each year, with an option to continue the lease another five years.
Discussing the sale and leaseback deal, Trulieve CEO Kim Rivers had this to say:
Trulieve had previously struck another sale-leaseback deal with IIP for property in Holyoke, Massachusetts earlier this year totalling $3.5 million, and including a $40 million reimbursement option as the company makes improvements to the property.
Working with real estate investment trusts is one way cash-strapped cannabis producers have been raising money for continuing operations amid consistently disappointing quarterly financial reporting.
California-based MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF) for instance sold off two properties to Treehouse Real Estate Investment Trust, Inc. earlier this year.
The industry is also currently seeing a deluge of insider investments, private placements, and rights offerings to raise money while riding out continued downward stock price trends.
In other Trulieve news, the company was added to the OTCQX Cannabis Index earlier this week after meeting financial, disclosure, and corporate governance standard performance benchmarks.
Trulieve has been on a dispensary opening spree this year, taking advantage of Florida’s expanded medical cannabis program that is nearing 300,000 total enrolled patients. In the last month, the company has opened up new locations in both Key West and Cape Coral.
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