The Cannabis “Land Grab” in the US and Canada; A New Gold Rush

NEW YORK and DELTA, British Columbia, Feb. 04, 2019 (GLOBE NEWSWIRE) -- Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the cannabis “land grab” happening in the US and Canada as companies focus on increasing their real estate footprint.

A recent CNBC article discussed how the super wealthy have started to invest more into cannabis companies and the land they own. In the article, Michael Sonnenfeldt, founder of investment club Tiger 21, that has numbers upwards of 700 and have a total of $71 billion under management, commented on investing in the cannabis sector saying, "Sometimes it's owning the land that cannabis is grown on, sometimes it's owning the real estate where there are factories, if you will, and sometimes it's owning the companies and then, of course, there's the public market."

Companies like Innovative Industrial Properties’ (NYSE: IIPR), a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities seem to be a harbinger of this investment trend.

In recent news, the company was reported closing at $61.92, outpacing the S&P 500's daily gain of 0.86%, with shares of the company having gained 33.52% over the past month, outpacing the finance sector's gain of 9.7% and the S&P 500's gain of 8.11% in that time.

Harvest Health & Recreation Inc. (CSE: HARV) (OTCQX: HTHHF), a vertically integrated public cannabis company, has decided to skip the middleman with regards to real estate and amassed one of the largest footprints in the U.S, with 60 licenses across 12 US states.

The company recently announced the Ohio Department of Commerce, pending background checks, will award the company a provisional processor license under Ohio’s Medical Marijuana Control Program. The application scored among the top 26 after being judged on a series of standards and merits, including relevant experience across multiple verticals in the cannabis space, prior demonstration of compliance, financial viability and proposed community benefits.

“Ohio has an important long-term role in the cannabis industry,” said Steve White, Founder and CEO of Harvest. “It has the seventh largest state economy, a skilled manufacturing workforce and a growing patient count. We are thrilled to open fully vertical operations and look forward to contributing to the Buckeye economy for years to come. This is a solid win for us, coming on the heels of big retail victories in Pennsylvania and Santa Monica, California.”

Cannabis companies like MedMen Enterprises (CSE: MMEN) (OTCQX: MMNFF) have also realized the investment to be made in cannabis real estate. MedMen and Stable Road Capital, a Venice, California-based investment firm with a successful track record in real estate and cannabis, recently founded Treehouse Real Estate Investment Trust, Inc., a newly organized real estate investment company focused on the acquisition, ownership and management of specialized retail and industrial properties leased for use as regulated adult-use and medical-use cannabis facilities.

Treehouse announced last week that it has completed its offering of 6,676,000 shares of its common stock (the “Common Stock”) for aggregate gross proceeds of approximately $133.5 million. Ladenburg Thalmann & Co. Inc., Compass Point Research & Trading, LLC, and Northland Securities, Inc. acted as the initial purchasers/placement agents for the offering.

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) and MPX Bioceutical Corporation just announced that the previously announced plan of arrangement in which iAnthus will acquire all of the issued and outstanding common shares of MPX is now expected to close on or before February 5, 2019.  

The combined company, excluding MPX International, will encompass operations and cannabis licenses in 10 states that will permit iAnthus to operate 56 retail locations and 14 cultivation/processing facilities. As a result of the transaction, iAnthus will add retail and/or production capabilities in Arizona, Maryland, Nevada, California and Massachusetts. These additional licenses complement iAnthus' existing assets in New York, Florida, Massachusetts, Vermont, Colorado, and New Mexico, forming super-regional footprints in both the Eastern and Western United States.