US (OK): 5 acre licensed cannabis facility acquired for $440,000

UC Asset LP announced the firm has signed a LOI to acquire a second Oklahoma cannabis property, for a consideration of $440k. The property is a 5-acre licensed cannabis growth facility, including 2 grow buildings and a single wide trailer.

UC Asset has engaged a licensed grower who will likely lease the property once it is officially acquired. According to the grower, operations from this facility may generate gross revenue of a minimum of $120k per month, based on the current market condition.

This is the second cannabis property UC Asset has signed an LOI to acquire. Last month, UC Asset signed an LOI to acquire a 4-acre licensed grow property in Oklahoma City area. The acquisition price for the first property has been negotiated down to $500k since the initial signing of the LOI.

“After careful consideration of all factors, we believe the second opportunity could prove more lucrative even than the first,” says Greg Bankston, managing general partner of UC Asset. “Depending on the availability of our capital and other reasons, we may opt to close on one or both properties, in the coming weeks,” Bankston reveals.

According to its SEC filings, the company had over $800k cash at the end of 2021’s third quarter. Since then, the company has exited more investment in its portfolio.

If UC Asset acquires the property, it will lease the property to licensed growers, implementing a business model similar to other established public companies, such as Power REIT. In February 2020, Power REIT announced expanding its portfolio in greenhouses for both food and cannabis cultivation. In less than 2 years since this announcement, its stock price has soared from $8.45 (February 03, 2020) to $73.01 (January 18, 2021), an increase of more than 860%. 

With a goal to replicate Power REIT’s success, UC Asset has developed a pipeline for cannabis property deals, in several states including Oklahoma, Florida and Michigan, as well as opportunities in its home state Georgia. Additionally, the company entered into an umbrella LOI deal to invest into cannabis properties operated by OTC company PURA Inc.

Altogether, UC Asset expects to expand its investment portfolio by $10 – 30 million this year, mostly of cannabis properties.