Atlanta, Jan. 12, 2023 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQB: UCASU) announces today that the company has entered a MOU to acquire a 10,000 square foot cannabis cultivation property in the State of Oklahoma, through a non-cash acquisition and investment deal. Upon closing, UCASU will invest $1 million to build extra 5,000 square feet of cannabis cultivation facility on the same spot.
The current operator on the property, Fire Ranch Farm, will continue to rent the property from UC Asset. UC Asset expects to receive monthly rents representing a 14.4% cash on cash annual return.
The lease is locked for 3 years, and monthly rent will increase by 5% every 24 months after the first 3 years.
The non-cash acquisition will be done through the issuance of 2.5 million preferred shares of UC Asset to the current property owner. Those preferred shares will have a fixed conversion rate of 1 to 1, which means that one preferred share may be converted into one common share, and one common share only, when conversion will be allowed in the future.
Holder of the preferred shares will receive no dividends from UC Asset, unless those preferred shares are converted into common shares. Meanwhile, common share holders will continue to receive cash dividends, shall UC Asset decided to distribute any.
"We are very grateful to be able to work with a cannabis property owner, who firmly believes in the future of our company and is willing to trade near-term cash revenue for long-term equity return," says Greg Bankston, managing general partner of UC Asset. "That's why he agrees to contribute his property to us for equity ownership, seeking neither cash payment nor cash dividend."
"In return, our company has committed to invest $1 million in the first 12 months, and will commit much more than that amount, to continuously expand the acquired cannabis property, and to acquire and build more cannabis properties. Our goal is to become one of the largest cannabis property owners in the State of Oklahoma," declares Bankston.
This 10,000 square foot cannabis property, according to Bankston, is built to the state-of-art standard, with computerized and automatized environment control, and has the capacity to host full cycle cannabis production from creating clones/genetics to extracting cannabinoids.
"This will be our first cannabis property, and it is our one and only selection after screening numerous opportunities in the past 15 months," says Larry Wu, founder of UC Asset. "Since we announced our intention to invest in cannabis property in October 2021, our team have made hundreds of phone calls to potential sellers, screened tens of opportunities, and conducted research in 5 different states, including Colorado, California and New York. That is why we are so optimistic of our final choice."
"We believe that Oklahoma is the future for cannabis cultivation, and our investment in the Sooner State will lead us to great success, sooner than later," asserts Wu.
About UC Asset LP
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亚特兰大,2023年1月12日(Global Newswire)--UC Asset LP(场外交易市场代码:UCASU)今天宣布,该公司已达成谅解备忘录,将通过非现金收购和投资交易,收购俄克拉荷马州一处10,000平方英尺的大麻种植物业。关闭后,UCASU将投资100万美元,在同一地点额外建造5000平方英尺的大麻种植设施。
该物业的当前运营商Fire Ranch Farm将继续从UC Asset租赁该物业。UC Asset预计将收到每月租金,相当于14.4%的现金年回报率。
租约锁定3年,前3年后,月租金每24个月上涨5%。
非现金收购将通过向目前的物业所有者发行UC Asset的250万股优先股来完成。这些优先股将有1比1的固定转换率,这意味着当未来允许转换时,一股优先股可以转换为一股普通股,并且只能转换为一股普通股。
优先股的持有者将不会从UC Asset获得股息,除非这些优先股转换为普通股。同时,普通股股东将继续获得现金股息,如果UC Asset决定分配任何。
UC Asset管理普通合伙人格雷格·班克斯顿表示:“我们非常感谢能够与大麻业主合作,他对我们公司的未来充满信心,愿意用短期现金收入换取长期股权回报。”“这就是为什么他同意将自己的财产捐献给我们作为股权所有权,既不寻求现金支付,也不寻求现金分红。”
班克斯顿宣称:“作为回报,我们公司已承诺在前12个月投资100万美元,并将承诺的金额远远超过这个数字,继续扩大收购的大麻资产,并收购和建造更多的大麻资产。我们的目标是成为俄克拉荷马州最大的大麻资产所有者之一。”
根据班克斯顿的说法,这处1万平方英尺的大麻资产是按照最先进的标准建造的,具有计算机化和自动化的环境控制,有能力容纳从创造克隆/遗传学到提取大麻类化合物的全周期大麻生产。
UC Asset创始人拉里·吴(Larry Wu)表示:“这将是我们的第一处大麻地产,也是我们在过去15个月里筛选了无数机会后唯一的选择。”自2021年10月我们宣布有意投资大麻地产以来,我们的团队已经给潜在卖家打了数百个电话,筛选了数十个机会,并在科罗拉多州、加利福尼亚州和纽约州等5个不同的州进行了研究。这就是为什么我们对最终的选择如此乐观。
我们相信俄克拉荷马州是大麻种植的未来,我们在更快州的投资将使我们早晚获得巨大成功,吴断言。
关于UC Asset LP
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