Cannabis-focused real estate company Innovative Industrial Properties, Inc. IIPR said Monday it has entered into an amendment of a lease with a subsidiary of Ascend Wellness Holdings, providing an extra $8 million in funding.
The funding will support further development of Ascend Wellness Holdings’ cannabis processing and cultivation facilities at a property in Barry, Illinois.
If the full amount of the additional funding is used the company’s total investment in the property will reach $33 million, IIP said in a statement.
IIP initially purchased the Illinois property and signed a long-term lease with Ascend Wellness Holdings in December.
The two companies have cooperated before, as IIP already acquired and executed a lease with Ascend Wellness Holdings for its Michigan-based cannabis processing and cultivation facilities in July.
Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.
“It is heartening to see the many significant steps that Illinois officials have taken to open the medical cannabis market for patients in need, and we are excited to support AWH in the enhancement of this facility to meet that demand,” IIP President and CEO Paul Smithers said in a statement.
Ascend Wellness Holdings co-Founder and CEO Abner Kurtin said IIP has the "flexibility and reliability" to fund the cannabis company's real estate needs.
“AWH is excited to be able to double our production in the Barry facility to meet the demands of the opening of the adult-use market next year. Combined with our four recreational dispensaries (under the new brand name Illinois Provisions), we expect to be the largest player in the southwestern region of the state.”
IIP shares were trading 2.48% higher at $85.37 at the time of publication Monday.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.