After acquisition, the current operator on the property,
The non-cash acquisition will be closed through the issuance of 2.5 million preferred shares of
Holder of the preferred shares will receive no dividends from
However, if preferred shareholder converts his holdings into common shares, he will be entitled to receive dividend. This additional dividend obligation raises the concern that whether the conversion of said preferred shares will dilute the interests of existing shareholders.
“There exists a three-party agreement, that for any preferred shares converted, the monthly rent on the property will be increased proportionally, so that the company will generate more income from the property,” explains Bankston.
Bankston adds that, according to the estimate by the management, the increase of rent may outweigh the additional dividend allocated to newly converted shares.
Bankston also confirms that the company are working with concerned parties to reach definitive agreements and close the transfer of the property as soon as possible.
This 10,000 square foot cannabis property, according to Bankston, is 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.
“This will be our first cannabis property, and it is our one and only selection after screening numerous opportunities in the past 15 months,” says
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