(Image via RealCanna Investment Trust)
The latest offering from
Stockhouse Select looks beyond cannabis plants and to the ancillary providers, quickly emerging as
the next big play in the industry. While cannabis producers are now consolidating after spectacular runs, businesses that support the sector are poised for tremendous growth.
The largest constraint now facing most cannabis operators in Canada is the shortage of capital to fund their growth plans. Many cannabis operators are now exploring alternative funding options to support their growth as stock market placements and traditional loans become too difficult or expensive. Collectively the industry owns $8 billion in real estate assets that they may leverage to fuel their continued growth.
That’s where
RealCanna Investment Trust comes in. RealCanna is a Canadian real estate investment trust (REIT) comprised of a proven team of real estate experts with an excess of $1 billion in previous success. By employing a sale-leaseback model that has already proven successful in the US cannabis market, RealCanna will buy and manage licensed facilities exclusively from the cannabis sector and lease the facilities back for consistent revenues and attractive returns for investors.
RealCanna has signed a letter of intent for an RTO with
Canna 8 Investment Trust, a publicly listed capital pool company on the TSX Venture Exchange (
TSX:RCR.P). In conjunction with the RTO, the Company is undertaking a private offering for a minimum of $10 million.
At an issue price of $0.25, each unit is comprised of one trust unit in RealCanna, one trust unit purchase warrant exercisable for two years at $0.40, and 1/10 of a liquidity warrant. One whole liquidity warrant entitles the holder to one trust unit if liquidity does not occur by January 31, 2020.
The proceeds raised from the offering will be utilized for the acquisition and closing of properties for the trust, as well as for the completion of the proposed RTO transaction. Following the RTO, RealCanna will follow a tried-and-true REIT distribution strategy that is common in Canada and the US.
Stockhouse Select: your destination to participate in exclusive pre-market financings, featuring some of the best companies – and deals – currently available for accredited investors.
To participate in the RealCanna Investment Trust private placement click HERE
FULL DISCLOSURE: RealCanna Investment Trust is a paid client of Stockhouse Publishing. Stockhouse Publishing Ltd. (Stockhouse) is not registered as a broker, dealer, exempt market dealer, or any other registrant in any securities regulatory jurisdiction and will not be performing any registerable activity as defined by the applicable regulatory bodies. This deal room is for informational purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees, and expenses. The information contained in this deal room is selective and does not purport to contain all the information relating to RealCanna Investment Trust. In all cases, parties should conduct their own investigation and due diligence, not rely solely on the data provided herein and are encouraged to consult with a financial adviser, lawyer, accountant, and any other professional that can help to understand and assess the risks associated with any investment opportunity.