AmeriCann entered into an agreement to expand the cultivation capacity of its Joint Venture partner, Bask.
AmeriCann’s flagship project, the Massachusetts Cannabis Center (“MCC”), is located on a 52-acre parcel in Southeastern Massachusetts. The MCC project is permitted for 987,000 sq. ft. of cannabis cultivation and processing infrastructure, which is being developed in phases.
"Bask commenced operations in Building 1, the MCC’s first phase, in February of 2020," AmeriCann team explains. "Based on the success of the venture in Building 1, AmeriCann and Bask are expanding the scope of their partnership into Building 2, the next phase of the MCC development. AmeriCann’s planned expansion for Bask represents over a 500% infrastructure increase."
“Bask has been an excellent partner on the initial phase of the Massachusetts Cannabis Center,” stated AmeriCann’s Ben Barton. “As AmeriCann expands the MCC to serve the fast-growing Massachusetts market with the development of Building 2, it was a natural progression to increase the scope of our successful partnership with Bask at this new facility.”
On January 14th, 2021 Bask, Inc. was awarded a Final license for an Adult-Use retailer business at its existing Medical Cannabis dispensary in Fairhaven, Massachusetts. With the addition of Bask’s Adult use license in Fairhaven and other retail opportunities, Bask requires an expanded cultivation footprint to accommodate the corresponding increase in demand.
“As Bask continues to expand its cannabis retail operations it’s necessary for us to expand our cultivation capacity to meet the growing demand from patients and consumers,” stated Bask CEO Chapman Dickerson. “The sustainable, custom built greenhouse facilities and technology provided by AmeriCann at the Massachusetts Cannabis Center allows us to produce quality products efficiently and sustainably.”
Plans for the 400,000 sf Building 2 facility will accommodate both Bask and AmeriCann in dedicated cultivation spaces. Additionally, AmeriCann will operate a centralized product manufacturing facility in Building 2 designed to support the entire 1 million square foot MCC campus. AmeriCann was awarded two licenses from the Massachusetts Cannabis Control Commission including one for cannabis cultivation and one for cannabis product manufacturing.
AmeriCann receives a Revenue Participation fee from Bask on all products cultivated and manufactured at the MCC. AmeriCann previously announced record revenue for 2020 which included positive EBITDA, and was driven by the Revenue Participation fee from Building 1.