Marijuana multistate operator Green Thumb Industries announced an amended sale-leaseback deal valued at up to $32.2 million for a facility in Ohio, reflecting a further loosening of capital – especially for expansion in fast-growing markets.
The transaction with San Diego-based Innovative Industrial Properties calls for $25 million in additional funding from the initial agreement to construct a cultivation operation at a property in Toledo, according to a news release.
The property currently houses a processing facility.
The original deal signed on Jan. 31 was valued at $7.2 million – $2.9 million for the sale of the facility and $4.3 million for tenant improvements.
Such funding deals are becoming more common in the industry to support well-run marijuana businesses with their expansion initiatives.
Innovative Industrial has become the leading investor in cannabis sale-leaseback ventures, which often includes financing to expand facilities. The deals also give the sellers an infusion of cash.
In addition to that Toledo facility, Chicago-based Green Thumb owns and operates five Rise medical cannabis dispensaries across Ohio.
Ohio’s medical marijuana program has generated more than $120 million in sales so far this year, more than double the industry’s take in 2019.
Innovative Industrial trades on the New York Stock Exchange as IIPR.