Diego Pellicer Worldwide has executed a series of agreements that will cancel the master lease on its Elizabeth Street cannabis cultivation facility in Denver, while maintaining cash flow for DPWW.
"A new series of leases and subleases allow DPWW to reduce its liability exposure in the Elizabeth Street cultivation facility while securing deferred rents due and future sublet payments for 4 years and 8 months, valued at $1,482,824," the team with the company explains. "In addition, a $120,000 deposit on the property is being returned to DPWW."
"Initial discussions have begun that would combine Diego Pellicer Worldwide Inc. with Diego Colorado Licensee entities Royal Asset Management, LLC (RAM) and Venture Product Consulting, LLC (VPC). The agreements are structured so that rents due and future sublet payments to DPWW are due and settled upon consummation of a merger, or one business day following the termination of merger by the Colorado Licensee or one business day following termination of merger discussions by DPWW beginning 18 months from Oct. 1, 2020.
“We worked collaboratively with the Diego operator at Elizabeth Street to make this a positive transaction as we initiate discussions of a merger,” said Nello Gonfiantini III, chief executive officer, Diego Pellicer Worldwide, Inc.
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