UC Asset LP has closed the acquisition of 50% ownership of a $3 million cannabis property, which has 15,000 square feet of cannabis cultivation area built to the state-of-art standard, with computerized and automatized environment control, and has the capacity to host full cycle cannabis production from creating clones/genetics to extracting cannabinoids.
The property is located in Edmond, Oklahoma, which is a suburban town only 20 minutes from downtown Oklahoma City, the capital and largest city of the State of Oklahoma.
The property is leased to Fire Ranch Farms, a licensed medical cannabis grower, which, according to its own report, operates at a net profit margin of approximately 30%, and is improving its net profitability toward 40% in the year 2023.
Fire Ranch Farms is one of the few Oklahoma cannabis growers that has mass pre-sell orders. Last year, it was chosen as the single source provider for Cheech Marin's Oklahoma product line. Most recently, the facility of Fire Ranch Farms is featured in the movie Second Chances, which was released only a few days ago on both Amazon Prime and Apple TV.
UC Asset acquired half ownership of the property with $1 million cash plus the issuance of 500,000 preferred shares valued at $1.20 per share, making it a $1.6 million deal in total. UC Asset has the option to acquire the remaining ownership of the property by issuing 2 million preferred shares.
Upon closure of this transaction, UC Asset becomes one of the only four American cannabis-related companies that are SEC (Security Exchange Commission) reporting public companies. Since most cannabis-related business practices are not federally legal, the overwhelming majority of public companies engaging in cannabis business do not report to SEC. Public companies like UC Asset, which reports to SEC and is directly regulated by SEC, are commonly considered as having better transparency and are held to a higher standard of corporate governance.
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UC Asset LP