AmeriCann Commences $2.5 Million Loan to Preferred Partner in Massachusetts

Coastal Compassion has Started Construction on Its Registered Medical Dispensary in Fairhaven, MA

DENVER, CO / June 2, 2016 / AmeriCann, Inc. (ACAN), a company that designs, develops and leases sustainable, state-of-the-art medical cannabis cultivation properties, has begun funding a loan as part of a definitive agreement with Coastal Compassion, Inc. in Massachusetts. 

Through AmeriCann’s Preferred Partner Program, Coastal Compassion will be the first tenant in AmeriCann’s proposed Massachusetts Medical Cannabis Center located in Freetown, MA. In addition, AmeriCann is providing consulting support during the construction of Coastal Compassion’s approved dispensary in Fairhaven, Massachusetts.

JoAnne Leppanen, Executive Director of Coastal Compassion, stated, “We are excited to start construction on our dispensary and make progress towards providing high quality, affordable medical cannabis to Massachusetts patients.”

Coastal Compassion is one of a limited number of non-profit organizations that has received a provisional or final registration to cultivate, process and sell medical cannabis by the Massachusetts Department of Public Health.

The 10,000 square foot building in Fairhaven will house Coastal Compassion’s dispensary, which has been provisionally approved by the State. The Fairhaven facility has a Special Permit and Building Permit from the Town of Fairhaven and architectural approvals from the Department of Public Health. Once complete, the facility will begin servicing patients while AmeriCann completes the development of the 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. Coastal Compassion finalized agreements to occupy the first phase of the project that consists of an initial 130,000 sq. ft. of cultivation and processing infrastructure. AmeriCann can expand the first phase to approximately 600,000 sq. ft., for Coastal Compassion based on patient demand.

“AmeriCann and Coastal Compassion share a commitment to delivering patients unsurpassed medicine produced with sustainable practices,” stated AmeriCann founder and CFO Ben Barton. “The commencement of this loan towards the completion of Coastal’s medical dispensary in Fairhaven is simply the first step in a long-term partnership in serving patients in the Commonwealth.”

The Massachusetts Medical Use of Marijuana Program, which was approved by voters in 2012 by a wide margin, continues to be one of the premier regarded markets by industry experts even with the first dispensaries having only recently opened.

A ballot initiative to allow for full marijuana legalization has received the necessary signatures and is expected to be on the November 2016 ballot for Massachusetts voters. “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.

About AmeriCann

AmericCann (OTCQX: ACAN) is a publicly traded company that designs, develops and leases sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in various stages of development. AmeriCann has preferred partners in Colorado, Massachusetts and Delaware. AmeriCann does not cultivate, process or distribute cannabis, but partners with local business to serve marijuana patients in their communities. More information about the Company is available at: www.americann.co.