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AmeriCann Completes Construction of Building 1 at Massachusetts Cannabis Center and Expects to Commence Revenue on September 1
Wednesday, August 14, 2019 9:23 AM
Company Received its Final Certificate of Occupancy for Building 1 and JV Partnership Revenue to Commence September 1
DENVER, CO / ACCESSWIRE / August 14, 2019 / AmeriCann, Inc. (OTCQB:ACAN), a cannabis company that is developing state-of-the-art cultivation, processing and product manufacturing facilities, recently received a Certificate of Occupancy for Building 1 of AmeriCann’s Massachusetts Cannabis Center (MCC) in Freetown, Mass. The construction milestone commences the 15-year JV Partnership with Bask, Inc., an existing Massachusetts licensed vertically-integrated cannabis operator, which will occupy 100% of MCC’s Building 1 as of September 1, 2019.
Previously, AmeriCann and Bask had signed a 15-year Joint Venture Partnership for Bask to operate the 30,000-square-foot greenhouse facility. As such, AmeriCann will receive Revenue Participation Fee of 15 percent of gross revenue on all products produced and sold from Building 1.
“Bask has been a great partner and we are excited about our partnership for the first phase of our Massachusetts project” said Ben Barton, CFO of AmeriCann. “The opportunity to scale up the innovation and technology from Building 1 to the next phase of construction is tremendous.”
The MCC is being developed on a 52-acre parcel located in Southeastern Massachusetts. The MCC project is permitted for 987,000 sq. ft. of cannabis cultivation and processing infrastructure for the existing medical cannabis and the newly emerging adult-use cannabis marketplace.
“We look forward to our move into the new facility at the Massachusetts Cannabis Center and to continuing our relationship with AmeriCann,” said Chapman Dickerson, CEO of Bask. “We are experiencing tremendous demand for cannabis throughout Massachusetts. This state-of-the-art facility will allow us to serve more cannabis patients and consumers throughout the Commonwealth.”
The Massachusetts cannabis market has some of the highest prices in the United States, with wholesale prices reaching $4,000 per pound and retail prices greater than $7,000 per pound. Building 1 is projected to produce 7,500 pounds annually of dry flower cannabis and over 400,000 units of infused products. AmeriCann projects a 1.5 year payback on its investment in Building 1.
AmeriCann recently announced plans to become a licensed producer of cannabis in Building 2 at the MCC. AmeriCann will occupy and operate a 118,000 square foot cannabis cultivation facility and a 40,000 square foot extraction and product manufacturing business to be located in Building 2.
AmeriCann’s Cannopy System, which will be used at the MCC, enables cannabis to be produced with a greatly reduced carbon footprint, making the final product cost less with higher margins. AmeriCann uses hybrid-greenhouse technology, which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25 percent fewer lights, and utility bills are up to 75 percent less than in typical warehouse cultivation facilities. Massachusetts has some of the highest energy costs in the nation, providing an even greater advantage to the MCC.
AmeriCann plans to replicate the brands, technology and innovations developed at its MCC project to new markets as a licensed multi-state operator (MSO).
As the first approved adult-use cannabis market on the Eastern U.S., Massachusetts has the potential to become the epicenter for cannabis innovation and research. According to the Cannabis Control Commission, Massachusetts recreational dispensaries have sold more than $160 million worth of cannabis products since recreational sales began in November 2018. Recreational retail sales are expected to total $1.3-1.6 billion in a few years, according to Marijuana Business Daily estimates.
AmeriCann (OTCQB:ACAN) is a cannabis company that is developing cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology for cannabis cultivation and is designing GMP Certified cannabis extraction and product manufacturing infrastructure. Through a wholly-owned subsidiary, AmeriCann Brands, Inc., the Company intends to secure licenses to cultivate cannabis and produce cannabis infused products including beverages, edibles, topicals, vape cartridges and concentrates.
More information about the Company is available at: www.americann.co, or follow AmeriCann on social media:
About Massachusetts Cannabis Center
Massachusetts Cannabis Center (MCC), is a one million square foot sustainable greenhouse, processing and manufacturing facility in Freetown, Mass which is being developed by AmeriCann. The first phase of the facility is scheduled to open and be ready for cannabis cultivation, processing, and infused product production in the summer of 2019. Once fully developed, the MCC design calls for a research facility, a training center, corporate offices, a quality-assurance laboratory, and a facility for manufacturing cannabis-infused food, nutraceuticals and consumer packaged cannabis goods.
About Bask, Inc.
Bask, Inc. (BASK) is one of a limited number of locally owned and operated, vertically integrated medical marijuana companies that has been operating in the Massachusetts market since June of 2017. BASK has received all necessary approvals to grow, process and dispense medical marijuana to registered patients in the Massachusetts Medical-Use of Marijuana Program. In addition, BASK has applied for Adult-Use licenses from the Cannabis Control Commission (2 Retail locations, 1 Cultivation, and 1 Product Manufacturer). Bask holds a Priority Certificate from the Cannabis Control Commission which allows for expedited application processing for Adult-Use licenses. BASK will be the first business to operate in AmeriCann’s Massachusetts Cannabis Center. For more information on BASK, visit www.cometobask.com or its social media links below:
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2 Pequod Road
Fairhaven, MA 02719
Email: [email protected]
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company's forward-looking statements, please see the Company’s Registration Statement on Form S-1, which the Company recently filed with the SEC and which may be viewed at www.sec.gov.
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SOURCE: AmeriCann, Inc.