Item 2. Properties
ITEM
2. PROPERTIES.
The
Company currently owns and leases the following properties throughout the United States.
Wilmington,
Delaware
The
Company owns a 45,070 square foot facility on 2.25 acres within a fenced-in business park which it purchased in September 2016
and developed into a cannabis cultivation, processing, and dispensary facility. The property is secured under a mortgage with
the Bank of New England that matures in 2031. The facility is leased to the Company’s cannabis licensee client under a 20-year
triple net lease expiring in 2035.
Lewes,
Delaware
The
Company leases 4,000 square feet of retail space in a newly-built multi-use building. This five-year lease with a five-year option
to extend the term commenced in October 2016. The Company built out the space into a cannabis dispensary which is sub-leased to
the same licensed cannabis company occupying the Wilmington facility, under a five-year triple net lease with a five-year option
to extend.
Milford,
Delaware
In
March 2019, the Company entered into a lease of a 100,000 square foot warehouse which the Company is developing into a cultivation
and processing facility. The lease term is 10 years, with an option to extend the term for three additional five-year periods.
Construction estimated to be completed by August 2021.
Anna,
Illinois
The
Company owns a 3,400 square foot free-standing cannabis dispensary that is secured under a mortgage with DuQuoin State Bank maturing
in 2020, provided it is not annually renewed by the bank, which the bank has done every year of this mortgage (the “DSQ
Mortgage”).
Harrisburg,
Illinois
The
Company owns a 3,400 free-standing cannabis dispensary, also secured under the DSQ Mortgage.
Metropolis,
Illinois
In
late 2020, the Company agreed to purchase a 14,000 square foot free-standing retail building and is currently seeking
a mortgage to close the transaction. The Company intends to develop the property into a cannabis dispensary.
Mt.
Vernon, Illinois
The
Company owns a 4,800 square foot free-standing cannabis dispensary that is secured under a mortgage with South Porte Bank that
matures on March 31, 2021.
Hagerstown,
Maryland
The
Company owns a 180,000 square foot manufacturing facility that it has developed into cannabis cultivation and production facility.
The property secures a $3 million promissory note to an accredited investor which was paid down in March 2021. This facility is
leased to the company’s cannabis licensed client under a 20 year triple net lease expiring in 2038.
Annapolis,
Maryland
In
October 2019, the Company purchased a free-standing 9,000 square foot industrial building which it is developing into a
medical marijuana dispensary.
Clark,
Nevada
The
Company leases approximately 10,000 square feet of an industrial building that was built into a cannabis cultivation facility.
This facility is subleased to the Company’s licensed cannabis client under a sub-lease which is coterminous with the Company’s
lease for 10 years expiring in 2024.
New
Bedford, Massachusetts
The
Company owns 138,000 square foot industrial property located on 21.95 acres within the New Bedford Industrial Park. The property
secures a mortgage with the Bank of New England that matures in 2027. Approximately half of the available square footage is leased
to a non-cannabis manufacturing company under a five-year lease. The Company developed the other half of the building into a cannabis
cultivation and processing facility which was approved for operations in January 2020.
Middleborough,
Massachusetts
The
Company owns a 22,700 square foot retail and warehouse building located on the main street of this municipality. 10,000 square
feet of the building has been developed into a retail dispensary, with the remaining square footage used as a warehouse.
Norwood
Massachusetts
The
Company’s corporate offices are located in Norwood, Massachusetts. This 10,000 square foot space is under a 10-year lease
with a related party that expires in 2028 and contains a 5-year extension option.
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