Marijuana real estate investor NewLake closes on $100 million IPO

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Connecticut-based NewLake Capital Partners, which provides real estate capital to state-licensed marijuana operators, said it closed on an initial public stock offering of more than $101 million.

The offering of 3.9 million shares of stock was priced at $26 a share, according to a news release.

The company expects the shares to trade on the U.S. over-the-counter markets.

Net proceeds will be used to acquire assets that fit in with the company’s strategy, NewLake said.

Three of the investment company’s recent deals have focused on the Arizona and Massachusetts marijuana markets:

  • In August, NewLake reportedly spent $8.8 million on four properties in Fitchburg, Massachusetts. The company declined to disclose its plans for the facilities, three of which were co-owned by a medical cannabis company.
  • In July, NewLake said it was investing up to $20.5 million to acquire land and help construct a 130,757-square-foot cultivation and processing facility in Phoenix. The facility will be leased and operated by The Mint, a Tempe, Arizona-based vertically integrated, multistate operator.
  • In April, NewLake acquired a 40,000-square-foot industrial property in Palmer, Mass. for $1.6 million and committed $3 million to renovate it into a cultivation and processing facility, also with The Mint as the tenant.