Business
AmeriCann Completes Construction of Building 1 at Massachusetts Cannabis Center and Expects to Commence Revenue on September 1
AmeriCann Completes Construction of Building 1 at Massachusetts Cannabis Center and Expects to Commence Revenue on September 1.
About this update from Americann Inc.
[{"type":"text","content":"Company Received its Final Certificate of Occupancy for Building 1 and JV Partnership Revenue to Commence September 1 DENVER, CO / ACCESSWIRE / August 14, 2019 / AmeriCann, Inc. (OTCQB:ACAN), a cannabis company that is developing state-of-the-art cultivation, processing and product manufacturing facilities, recently received a Certificate of Occupancy for Building 1 of AmeriCann’s Massachusetts Cannabis Center (MCC) in Freetown, Mass. The construction milestone commences the 15-year JV Partnership with Bask, Inc., an existing Massachusetts licensed vertically-integrated cannabis operator, which will occupy 100% of MCC’s Building 1 as of September 1, 2019. Previously, AmeriCann and Bask had signed a 15-year Joint Venture Partnership for Bask to operate the 30,000-square-foot greenhouse facility. As such, AmeriCann will receive Revenue Participation Fee of 15 percent of gross revenue on all products produced and sold from Building 1.“Bask has been a great partner and we are excited about our partnership for the first phase of our Massachusetts project” said Ben Barton, CFO of AmeriCann. “The opportunity to scale up the innovation and technology from Building 1 to the next phase of construction is tremendous.”The MCC is being developed on a 52-acre parcel located in Southeastern Massachusetts. The MCC project is permitted for 987,000 sq. ft. of cannabis cultivation and processing infrastructure for the existing medical cannabis and the newly emerging adult-use cannabis marketplace.“We look forward to our move into the new facility at the Massachusetts Cannabis Center and to continuing our relationship with AmeriCann,” said Chapman Dickerson, CEO of Bask. “We are experiencing tremendous demand for cannabis throughout Massachusetts. This state-of-the-art facility will allow us to serve more cannabis patients and consumers throughout the Commonwealth.” The Massachusetts cannabis market has some of the highest prices in the United States, with wholesale prices reaching $4,000 per pound and retail prices greater than $7,000 per pound. Building 1 is projected to produce 7,500 pounds annually of dry flower cannabis and over 400,000 units of infused products. AmeriCann projects a 1.5 year payback on its investment in Building 1.AmeriCann recently announced plans to become a licensed producer of cannabis in Building 2 at the MCC. AmeriCann ...