Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) secured $ 39 million in debt financing.
The company has an agreement with Subversive real estate acquisition REIT LP, including a two-year option to conduct a sale-leaseback transaction to purchase a 455,000 square meter Flower One facility in Las Vegas.
The REIT has agreed to pay up to $ 80 million for the property and lease it back to Toronto-based Flower One.
The sale-leaseback option has a term of 20 years with two 10-year extension options.
In addition, Flower One is obliged to issue warrants amounting to 10% of the transaction price after the sale-leaseback has been concluded.
The loan agreement is a seven-year interest-only loan with an interest rate of 10.5% for the entire term.
The company announced Wednesday that it would use the proceeds to replace an existing $ 30 million term loan and fund its other liabilities as well as general corporate purposes.
Richard Acosta, CEO and Director of the General Partner of Subversive REIT, announced that “entering into a loan agreement and possible sale-leaseback with Flower One” will enable them to fulfill their mission of “providing real estate capital solutions to leading US cannabis operators “. . “
The President and CEO of Flower One is thrilled to “build a strategic partnership with such a close and very knowledgeable cannabis real estate partner”.
Meanwhile, Flower One recently welcomed Salpy Boyajian, NLV Organics co-founder and chief operating officer of its Nevada business, to the board of directors.
Image used with permission