1933 Industries' subsidiary, Alternative Medicine Association (“AMA”), has completed a sale and lease back for its newly constructed cannabis cultivation facility in Las Vegas, Nevada.
The purchase price for the Sale Transaction is USD$10,450,000, which the Company has received, subject to a USD$500,000 hold back to be released upon the completion of the facility and issuance of permanent occupancy permits, and a USD$250,000 hold back to be released upon issuance of state and local permitting for the facility. AMA anticipates receipt of all permits and approvals for full cultivation operations within 45 days. The Sale Transaction includes the cultivation facility as well as the 1.39 acres of land it sits on.
The Sale Transaction includes a lease-back agreement for a period of 10 years, with the option to extend the lease term for two additional periods of 5 years each, ensuring a long term location for the ongoing cultivation operations of the Company.
The Company also reports that it has received a Temporary Occupancy Permit for the facility.