Cannabis multistate operator 4Front Ventures said it has completed a sale-leaseback of cultivation and production facilities in Massachusetts and Washington state, generating $33 million to pay down debt and for general purposes.
The deal is just the latest in a wave of sale-leaseback transactions in the marijuana industry that help operators raise cash and bolster their financial position.
“The successful closing of the transaction marks a significant milestone in our stated strategy to further strengthen our balance sheet, providing the company greater flexibility to fund its growth initiatives,” 4Front CEO Leo Gontmakher said in a statement.
The all-cash sale was to California-based Innovative Industrial Properties (IIP), the industry leader in sale-leaseback transactions.
IIP will lease back the facilities to Arizona-based 4Front under a 20-year agreement.
4Front said it repaid its outstanding debt to affiliates of California-based Gotham Green Partners and will use remaining proceeds for general corporate purposes.