Power REIT raises $37 million in rights offering for marijuana acquisitions

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Specialty real estate investment trust Power REIT, which has a portfolio that includes marijuana production facilities, raised $37 million through a rights offering that sold roughly 1.4 million shares at $26.50 per share.

“The capital generated from the rights offering provides Power REIT with the immediate ability to continue its growth strategy through accretive acquisitions,” Power REIT Chair and CEO David Lesser said in a Wednesday news release.

According to the release, Power REIT is “actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture for the cultivation of food and cannabis.”

A new investor presentation posted online by Power REIT said the company has “a substantial pipeline of potential acquisitions.”

Power REIT said $4.5 million worth of proceeds from the raise would be used to finance two recently announced acquisitions, without specifying which acquisitions.

The company will have “approximately $32.2 million available for additional investment.”

Last week, the New York-based company acquired a 37,000-square-foot cannabis greenhouse in Southern California.

Another cannabis industry real estate investment trust, AFC Gamma, recently announced plans to raise up to $105 million in an initial public offering.

Shares of Power REIT trade on the New York Stock Exchange as PW.