AmeriCann, Inc., 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 (NYSE:SAM) 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, 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 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.
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