Multistate operator 4Front Ventures is using a $30 million sale-leaseback transaction to rid itself of debt to a company lender, the corporate mentioned.
The all-cash deal with California-based Innovative Industrial Properties (IIP) entails the sale of cultivation and manufacturing services owned by 4Front in Tumwater, Washington. and Georgetown, Massachusetts.
IIP will then lease the services again to 4Front below 20-year lease agreements so the Arizona firm can proceed to use them.
The cash shall be utilized by 4Front to “pay down the outstanding senior secured debt obligation to affiliates of Gotham Green Partners” of California, in accordance to a information launch.
4Front CEO Leo Gonthmaker mentioned in an announcement that the transfer will assist shore up the corporate’s stability sheet and provides the enterprise extra flexibility to “fund our growth initiatives” in its core markets of California, Illinois, Massachusetts, Michigan and Washington state.
The deal, anticipated to shut by December, is simply the newest that Innovative Industrial Properties has entered into within the hashish area.
IIP has been on a shopping for spree for many of 2020 within the marijuana trade, having entered into related offers with Green Thumb Industries, Parallel, Curaleaf, Cresco Labs, Kings Garden, Ascend Wellness Holdings and Trulieve, to title a couple of.
As of August, the REIT owned 61 hashish actual property properties.
Innovative Industrial Properties lists as IIPR on the New York Stock Exchange.