DENVER, Colorado, and TORONTO, Canada, July 17, 2019 -- MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced it has closed a sale-leaseback agreement with Innovative Industrial Properties (“IIP”) (NYSE:IIPR) worth an estimated value of US$9.6 million (excluding transaction costs) of its Cheyenne Ave., Las Vegas, Nevada production facility owned by the Company (the “Facility”).
As a result of this transaction, MJardin has successfully leveraged non-core real estate at the Facility while retaining use of the property for commercial purposes. The US$9.6 million consideration includes approximately US$5.8 million in future tenant inducement payments and construction funding for the Facility. The term of the lease is 20 years, with two five-year rights of renewal.
“The sale and leaseback cements MJardin’s commitment to creating shareholder value through responsible stewardship of resources,” commented Adrian Montgomery, CEO and Chairman. “This transaction unlocks valuable capital to be put towards further expansion of MJardin’s business lines. We look forward to working with IIP today and into the future.”
The Facility is over 30,000 square feet with an expected production capacity of approximately 5,700 kg of flower per year.
About MJardin Group
MJardin is a cannabis management platform with extensive experience in cultivation, processing, distribution and retail. For over 10 years, MJardin has refined cultivation methodologies, developed state of the art facilities and implemented vertical integration for and on behalf of license owners. MJardin is based in Denver, Colorado and Toronto, Canada. For more information, please visit www.mjardin.com
The CSE has not in any way passed upon the merits of and has neither approved nor disapproved the contents of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains forward-looking information based on current expectations. Statements about, among other things, future developments and the business and operations of MJardin, our production capacity, our production results, trading of MJardin’s shares on the OTCQX Best Market, the closing of the Transaction, the receipt of any pending regulatory approvals or licenses, the growth of our global footprint and our intentions to leverage our scale for continued organic growth and to pursue strategic investments are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to: our ability to identify and pursue growth, financing and other strategic objectives, and the regulatory and economic environments in the jurisdictions we operate or intend to operate or invest in. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that the proposed acquisition will occur and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. MJardin assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
Ali Mahdavi Adrian T. Montgomery
Capital Markets & Investor Relations Chief Executive Officer