In credit-strapped medical pot world, Illinois firms may tap real estate for cash
Medical cannabis company PharmaCann cashed in recently on one of its cultivation facilities, and in the capital-strapped world of medical marijuana, it likely won’t be the last to turn to its real estate for funds.
The Illinois-based company sold its cultivation facility in Hamptonburgh, N.Y., to Innovative Industrial Properties, the first publicly traded medical cannabis-focused real estate investment trust, or REIT, and then signed a 15-year lease for the building, with options to extend.
Sale and lease-back deals have long been a way for companies to access capital. Sears Holdings, for example, has used the strategy in recent years as it struggles to stay afloat amid changing consumer demands.
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