Acreage to sell cannabis real estate assets to newly formed REIT

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New York-based marijuana company Acreage Holdings said it agreed to sell cannabis-related real estate to a newly formed real estate investment trust (REIT), GreenAcreage Real Estate Corp., under a leaseback agreement between the two companies.

The price wasn’t disclosed.

Acreage holds a 20% interest in GreenAcreage Real Estate Corp. (GARE). Acreage CEO Kevin Murphy also holds an undisclosed stake in the REIT.

Under terms of the deal, GARE will lease back to Acreage properties it purchases from the multistate operator.

Acreage, which trades on the Canadian Securities Exchange under the ticker symbol ACRG, made headlines recently when it agreed to be acquired in a multibillion-dollar deal by Canada’s Canopy Growth. The deal is contingent on the U.S. government legalizing marijuana.

More details about the Acreage-GARE deal can be found here.