UCASU announces LOI to acquire $2.2 mllion Cannabis Property in Oklahoma

 

Atlanta, GA -- December 6, 2021 -- InvestorsHub NewsWire -- UC Asset LP (OTCQX: UCASU) announces the firm has signed LOI with an Oklahoma cannabis property owner and licensed medical marijuana grower, to acquire its property, including all on-ground structures, for a consideration of $2.2 million.

 

The property is a 4-acre medical marijuana indoor/outdoor property. According to the seller, operation from this property generated a gross annual revenue of about $900,000.

 

Seller will finance a major part of the transaction by providing a $1.2 million, 3-year loan, which will carry an annual interest of 1.8%.  The loan also has a grace period of 6 months.

 

UC Asset plans to lease the property back to licensed growers, applying a business model similar to those adopted by established public companies, such as Power REIT (NYSE: PW).

 

"There are only a few real estate investment companies on the public market with significant cannabis properties in their portfolio.  And some of these portfolios appear to be very successful despite their short history. We've decided to adopt this investment model," says Greg Bankston, managing general partner of UC Asset.

 

Among the public companies Bankston referred to is Power REIT. In February 2020, the REIT announced expanding its portfolio in greenhouses for both food and cannabis cultivation. In the 21 months since this announcement, its stock price has soared from $8.45 (February 03,2020) to $63.46 (November 12, 2021), an increase of 750%.  According to its most recent report, the company's quarterly revenue achieved a 133% growth and quarterly net income achieved a 221% growth, by June 30, 2021.

 

This is the first LOI signed since UC Asset announced its plan to investment in cannabis property investments two month ago.  Last month, UC Asset declared that it has developed a deal pipeline for cannabis property investments.  The management confirms today that it may sign more LOIs for potential deals in the coming weeks.

 

 

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA.  For more information about UC Asset, please visit: www.ucasset.com

 

Disclaimer: 

This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

 

For More Information Contact:

Christal Jordan | Executive Director, UC Asset LP

cjordan@ucasset.com | 678-499-0297

 

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