MJ Biz Special Report Says Cannabis Companies Now Selling Real Estate Assets & Leasing Back

MJ Biz Special Report Says Cannabis Companies Now Selling Real Estate Assets & Leasing Back

We wonder if this development will at least give us a break from all these endless companies telling us about vertical integration and we also wonder if this is the start of the larger cannabis producers working increasingly on an outsourcing model rather than the mantra of the last few years which has been to try and centrally control all aspects of production. Look at all the names below.. we’d suggest this is just the beginning of the avalanche of re-financing which will, we suggest, create more flexible companies, with we’d hope, more realistic share prices MJ Biz report Large cannabis companies increasingly are selling their own cultivation, processing and storage facilities and immediately leasing them back as a way to instantly raise tens of millions of dollars at a time when outside financing is scarce. Unlocking the value of real estate with a sale provides money that can be used to grow a marijuana firm’s core business, without diluting the value of its stock, the way issuing more shares would. In real estate parlance, these deals are known as sale-leaseback transactions, since the property is sold and leased back. In other words, the marijuana company becomes a tenant and the…

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Source : CANNANNEW REPORT
Link to original : MJ Biz Special Report Says Cannabis Companies Now Selling Real Estate Assets & Leasing Back
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