Hero Technologies has closed the purchase of a 10-acre property in Vassar Township, Michigan. The company plans to use the property for its cannabis business in the state, including indoor and outdoor growing, processing, wholesaling, and selling directly to consumers through dispensary operations. The transaction closed on December 5, 2022, at a purchase price of $600,000, with the company making a $75,000 down payment (12.5% of the purchase price). The company received a favorable annual interest rate of 4.75%, with monthly interest-only payments permitted and additional payments applied against the principal. Under the terms of the land contract, the company will pay off the loan's principal within five years.
Hero Technologies' subsidiary in Michigan, BlackBox Systems and Technologies, has already obtained pre-qualification approval for adult-use and medicinal-use cannabis licenses in Michigan and recently received a local license and permit approval to use the Vassar property for cannabis operations.
In 2022, Michigan's market for legal cannabis has grown 27% over 2021, and by year-end, cannabis sales in the state should approach $2.3 billion.
The company's Vassar property in central Michigan is ideally located for distribution across the state. More than 1.6 million people live within 50 miles of the site, and Vassar is a 1.5-hour drive from Lansing, the state capital, and Detroit, with a metro population of 4.4 million.
"We are gratified to be able to close on our target property in Vassar, Michigan, according to plan," said Hero Technologies' CEO Gina Serkasevich. "We chose the site for its cannabis-friendly local zoning, cost-effectiveness, and geographic location at the heart of Michigan's booming cannabis market. We are acting promptly to develop the property for cannabis production under our state and local licenses, and we look forward to generating a positive return on our investments for our employees and our investors."
For more information:
Hero Technologies Inc.