Flower One Signs Sale-Leaseback Agreement with Treehouse Real Estate Investment Trust, a Leading Cannabis REIT
TORONTO, Sept. 18, 2019 /CNW/ – Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE) (OTCQX: FLOOF) today announced that one of the Company’s subsidiaries has entered into a sale-leaseback agreement (the “Agreement”) with Treehouse Real Estate Investment Trust, Inc. (“Treehouse”) 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 (collectively, the “Neeham Property”). 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 US$20,000,000 (the “Purchase Price”).
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. Flower One is actively pursuing multi-state opportunities and plans to utilize its partnership with Treehouse in order to do so.
Kellen O’Keefe, Chief Strategy Officer at Flower One
“Flower One is a premier producer of high-quality products for the top brands in the cannabis industry,” said Ray Lewis, President and CEO 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.
Geoff Miachika, Chief Financial Officer at Flower One.
The Company expects the Agreement to close on or before November 16, 2019 (the “Closing”). The Company has been advanced the Purchase Price as a loan, which bears interest at 15% 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 fulfillment 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 fulfillment 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 the Neeham Property, 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. Flower One produces a wide range of products ranging from wholesale flower, full-spectrum oils, and distillates to finished consumer packaged goods including flower, pre-rolls, concentrates, edibles, beverages, and topicals for the top-performing brands in cannabis.
The Company’s common shares are traded on the Canadian Securities Exchange under the Company’s symbol “FONE” and in the United States on the OTCQX Best Market under the symbol “FLOOF”. For more information, visit: https://flowerone.com.