PHOENIX, Aug. 16, 2021 /CNW/ -- Harvest Health & Recreation Inc. ("Harvest") (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today announced the closing of a sale leaseback transaction with Innovative Industrial Properties, Inc. ("IIP") (NYSE: IIPR).
Harvest sold a property in Hancock, Maryland for approximately $16.6 million excluding transaction costs. Concurrent with the sale Harvest entered into a long term lease with IIP. Harvest plans to continue to operate the property as a licensed cultivation and processing facility and expects to recover up to approximately $12.9 million in tenant improvements from IIP. The total proceeds for the transaction are expected to be approximately $29.5 million.
"We are pleased to secure real estate financing to support expansion activities at our Hancock cultivation and processing facility," said Chief Executive Officer Steve White. "Maryland is one of our core markets with significant future growth potential. We look forward to expanding our wholesale operations and providing continuing support for our retail locations in Maryland after additional capacity comes online."
Harvest currently operates three medical dispensaries in Halethorpe, Lutherville-Timonium and Rockville supported by a cultivation and processing facility in Hancock.