AmeriCann has provided an update for its new state-of-the-art cannabis cultivation and processing facility in Massachusetts.
"AmeriCann's Massachusetts Cannabis Center is located on a 52-acre parcel located in Southeastern Massachusetts," the team with the company explains. "The MCC project is permitted for 987,000 square feet of cannabis cultivation and processing infrastructure, which will be developed in phases, and plans to support both the existing medical cannabis and the adult-use cannabis markets."
"The initial phase of the development, Building 1, is a 30,000 square foot cultivation greenhouse and processing facility, that utilizes AmeriCann's proprietary "Cannopy" system. Building 1 is fully-occupied by Bask, Inc., an existing Massachusetts licensed vertically integrated cannabis operator."
During the 15-year Joint Venture for Building 1, AmeriCann will receive Base Rent and a Revenue Participation Fee from Bask of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced. Annually, the facility is projected to produce 7,500 pounds of dry flower cannabis and over 400,000 units of infused product.
A summary of operational highlights included the following:
- AmeriCann's joint venture partner commenced cannabis operations in February 2020.
- Bask is currently expanding its cannabis production in Building 1 - with cultivation utilization now over 50% of capacity.
- AmeriCann's Revenue Participation Fee from Building 1 commenced in the current quarter.
- Medical Cannabis has been deemed an "essential" business and operations have not been impacted during the Massachusetts "Stay at Home" Advisory.
- Massachusetts medical cannabis sales have accelerated in recent months.
- AmeriCann filed license applications for Building 2 - the next planned phase of the MCC development.
"The results from the first several months of production at our Massachusetts Cannabis Center have been outstanding," stated AmeriCann Chief Executive Tim Keogh. "Our Cannopy System includes the technology and advanced workflow designs that we have developed and implemented for Building 1 and is paying dividends with excellent results."