Mr. Kellen O'Keefe reports
FLOWER ONE SIGNS SALE-LEASEBACK AGREEMENT WITH TREEHOUSE REAL ESTATE INVESTMENT TRUST, A LEADING CANNABIS REIT
One of Flower One Holdings Inc.'s subsidiaries has entered into a sale leaseback agreement with Treehouse Real Estate Investment Trust Inc. for the company's 25,000-square-foot indoor cultivation and production facility in North Las Vegas, including the adjacent vacant lot acquired early in 2019. Flower One is finalizing plans to build a state-of-the-art commercial kitchen and manufacturing space on the Neeham property and expects to start construction by the second quarter of 2020. Treehouse will purchase the Neeham property for $20-million (U.S.).
The company, through one of its subsidiaries, will lease the Neeham property from Treehouse for a term of 20 years with two 10-year extension options. As part of the agreement, Treehouse will have a five-year right of first offer on future sale leasebacks by the company.
"Flower One is thrilled to form a long-term partnership with Treehouse, enabling us to access significant capital to continue our expansion in Nevada and potentially beyond," said Kellen O'Keefe, chief strategy officer at Flower One. Flower One is actively pursuing multistate opportunities and plans to utilize its partnership with Treehouse in order to do so.
"Flower One is a premier producer of high-quality products for the top brands in the cannabis industry," said Ray Lewis, president and chief executive officer of Treehouse. "We are pleased to meet their financing goals and we look forward to a long and mutually beneficial relationship with Flower One."
"Treehouse provides an excellent source of non-dilutive capital for Flower One's growth strategy and they bring the utmost professionalism to the industry," said Geoff Miachika, chief financial officer at Flower One.
The company expects the agreement to close on or before Nov. 16, 2019. The company has been advanced the purchase price as a loan, which bears interest at 15 per cent annually and the company expects to repay upon closing. The company will use the net proceeds for facility improvements at the Neeham property and for general working capital and operational purposes.
About Flower One Holdings Inc.
Flower One is the largest cannabis cultivator, producer and full-service brand fulfilment partner in the state of Nevada. By combining more than 20 years of greenhouse operational excellence with best-in-class cannabis operators, Flower One offers consistent, reliable and scalable fulfilment to a growing number of industry-leading cannabis brands. Flower One's flagship 400,000-square-foot greenhouse and 55,000 square-foot production facility is used for large-scale cannabis cultivation, processing and manufacturing. Flower One also owns and operates a second production facility in Las Vegas, with 25,000 square feet of indoor cultivation and a commercial kitchen that will produce several of the nation's top-performing edible and beverage brands.
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