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AmeriCann Completes $4.475MM Land Purchase
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Company Acquires Property from Boston Beer Company, Maker of Sam Adams Beer, for $4,475,000
Expects to Begin Construction in Early 2017 and Commence Operations by the End of 2017
DENVER, CO / October 26, 2016 / AmeriCann, Inc. (ACAN: OTCQX), a company that plans to develop sustainable, state-of-the-art medical cannabis cultivation properties, has completed its acquisition of a nearly 53-acre property from Boston Beer Company (SAM: NYSE) for $4,475,000.
The Company plans to develop the property as the Massachusetts Medical Cannabis Center (the “MMCC”), one of the largest and most technologically advanced cannabis cultivation facilities in the nation.
Designs for the MMCC include the construction of sustainable greenhouse cultivation, processing, and infused product facilities that will be leased or sold to Registered Marijuana Dispensaries under the Massachusetts Medical Marijuana Program.
The Company has received unanimous approval from the Town of Freetown Planning Board for the development of 977,000 square feet of cannabis cultivation and processing infrastructure on the property. In addition, AmeriCann has signed definitive agreements with a provisionally licensed organization to become the initial tenant in the planned MMCC.
As part of the closing transaction, the AmeriCann transferred the property to a real estate investment group, Massachusetts Medical Properties, LLC and entered into a 50-year lease with options to extend for an additional 40 years. The sale-leaseback transaction allows AmeriCann to focus on raising capital to build revenue-generating infrastructure on the property.
When fully developed, the MMCC is projected to create over 300 jobs with an annual projected payroll of over $14 million to the local community. Construction is expected to commence in early 2017 with first cannabis produced by late 2017.
AmeriCann and Freetown officials have been engaged in the approval process with for over a year and the town has provided strong support for the MMCC. The Freetown planning board gave unanimous approval to the development plans in a public forum. Planning Board Chairman Kevin Desmarais closed the meeting by saying, “This has been one of the better public processes with which I’ve been involved.”
Twenty-five states and the District of Columbia have regulated the use of cannabis. Additionally, nine states with over 30% of the United States population will be voting on November 8th regulating the sale of cannabis for medicinal or recreational use. Most ballot measures favoring cannabis are polling favorably.
The respected Wall Street firm of Cowen & Co recently released a research report projecting dramatic growth for the regulated cannabis industry from the current $7 billion nationally to over $50 billion in ten years.
The Massachusetts Medical Use of Marijuana Program, which was approved by voters in 2012 by a wide margin, continues to be one of the highest regarded medical cannabis programs in the nation by industry experts even with the first dispensaries having only recently opened. The first phase plans for MMCC are based on demand from the existing medical market. AmeriCann will monitor the vote in Massachusetts on adult use and may modify the planned capacity accordingly.
“The state [Massachusetts] could become one of the biggest regulated cannabis markets in the country; bigger than Colorado and Washington State,” according to Marijuana Business Daily. The Boston Globe recently reported the regulated cannabis market in Massachusetts may exceed $1 billion by 2020.
“There is a lack of existing and planned cultivation infrastructure in the Massachusetts market which creates the opportunity for developing MMCC,” stated Tim Keogh, CEO of AmeriCann. He went on to say “in addition, the size of the project, as well as the design of the facility using our Cannopy System, will produce sun-grown cannabis in a more cost effective manner than traditional indoor facilities creating a significant competitive advantage.”
The Boston Globe, in reporting on the Freetown property acquisition stated, “Advocates have repeatedly complained that Massachusetts has too few medical marijuana dispensaries and growing facilities, and the legal marijuana available is too expensive — problems Keogh hopes the Freetown complex will help solve.”
According to Matt Karnes, Founder and Managing Partner of the respected NY-based cannabis industry research firm GreenWave Advisors, “We believe that the future of the cannabis industry is large-scale, energy efficient greenhouse cultivation and processing. AmeriCann is well positioned at the forefront of this development.”
About AmeriCann
AmeriCann is a publicly traded company that plans to develop and lease sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in the planning and design stages of development. The Company has designed a proprietary line of cannabis infused products which will be branded and licensed to companies in regulated markets.
AmeriCann, Inc. is a Certified B Corp, an acknowledgment of the company’s commitment to social and environmental ethics, transparency and accountability. AmeriCann became the first public cannabis company to earn this respected accreditation. More information about the Company is available at: www.americann.co.
About Massachusetts Medical Cannabis Center
The Massachusetts Medical Cannabis Center is approved for nearly 1,000,000 square feet of medical cannabis cultivation and processing in Freetown, Massachusetts. The state-of-the-art, sustainable, greenhouse project will consist of multiple planned phases for tenants in the Massachusetts medical marijuana market. AmeriCann’s Cannopy System uniquely combines expertise from traditional horticulture, lean manufacturing, regulatory compliance and cannabis cultivation to create superior facilities and procedures.
The first phase of the project consists of 130,000 sq. ft. of cultivation and processing infrastructure. AmeriCann can expand the first phase to approximately 600,000 sq. ft., based on patient demand.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended September 30, 2015, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.
Contact Information:
Corporate:
AmeriCann, Inc.
3200 Brighton Blvd. Unit 114
Denver, CO 80216
(303) 862-9000
info@americann.co
Investors:
Hayden IR
hart@haydenir.com
(917) 658-7878
Source: AmeriCann, Inc.
