Can B Corp. and American Development Partners Agree In following the format of the original "Lab2" created by Can B Corp in Miami, FL, ADP will finance and develop up to 100 similarly-formatted CBD Lounges, with the first 50 committed to by Can B with an option to develop 50 more, to be operated by the Company or its affiliates and Licensees. Each CBD Lounge is budgeted to have development cost of approximately $4 million, for a total initial commitment from American Development Partners of approximately $200 million and an option for an additional $200 million. The agreement stipulates that ADP will be the exclusive developer of the CBD Lounges during the 10-year term of the agreement. ADP will receive a development fee of 10% of the total development cost for each CBD Lounge. Can B will enter into a 20-year lease for each CBD Lounge developed by ADP. This agreement is non-dilutive to CANB shareholders.
ADP was founded in 1995 and its team almost 600 collective years of experience having deployed over $1 billion REIT and additional private equity. ADP specializes in capital, site selection, design, architecture and engineering, construction and sale-leaseback programs. For a list of ADP clients, please visit https://www.americandevelopmentpartners.com/clients.
Marco Alfonsi, Can B's Chief Executive Officer, stated, "We are very excited for this expansion opportunity, with our first location expected to open in the tourist popular Wynwood section of Miami, Florida in April. Our CBD Lounges will encompass food, drink, and entertainment and highlight our health and wellness CBD products. With ADP, we have a well-recognized and experienced partner sharing our vision to build out our CBD Lounges. We have a plan to roll out a number of locations over the next few years and believe it will be a large contributor of revenue to our company without dilution to our shareholders."
Peter Cantel Director of Communication of American Development Partners, commented, "Our team is always looking to work with exciting growth opportunities, especially with new or emerging concepts. We view Can B's CBD Lounges as just that and are thrilled to partner with Can B to help them build out their vision. The CBD Lounge is a great strategy to highlight their health and wellness products in a relaxed social environment giving consumers the chance to educate and enjoy themselves. We've done a lot of buildouts in healthcare and food hospitality, with clients such as American Family Care, Church's Chicken, and Taco Johns, and are excited to add Can B to our roster of clients."
https://www.accesswire.com/692087/can-b-corp-and-american-development-partners--agree-to-finance-and-develop-cbd-lounges