[PRESS RELEASE] – SAN DIEGO, Jan. 30, 2025 – Cutting edge Commercial Houses Inc. (IIP), the primary and handiest actual property corporate at the New York Inventory Alternate targeted at the regulated U.S. hashish business, introduced that it has reached an settlement with PharmaCann Inc. and its associates (jointly, PharmaCann) to get to the bottom of PharmaCann’s current defaults beneath rentals for 11 houses that the corporate owns (jointly, the “rentals”), prior to now introduced via IIP on Dec. 20, 2024.
The key phrases of the settlement between PharmaCann and IIP are as follows:
- IIP absolutely applied safety deposits held via it beneath all rentals for the cost in filled with defaulted hire for December 2024 and January 2025 and positive consequences.
- IIP entered into amendments with PharmaCann with appreciate to 9 of the Rentals for houses positioned in New York, Illinois, Pennsylvania, Ohio, and Colorado as follows:
- Larger the full required safety deposits, which shall be paid pro-rata over 36 months starting off Feb. 1, 2027.
- Diminished cumulative overall base hire from $2.8 million per 30 days to $2.6 million per 30 days, with money hire bills starting off Feb. 1, 2025.
- IIP entered into amendments with PharmaCann with appreciate to 2 of the rentals for cultivation houses in Michigan and Massachusetts, as follows:
- PharmaCann will paintings with IIP to transition the houses to new tenant(s) via contributing the licenses, matter to regulatory necessities, and offering different enhance as asked via IIP.
- If the houses have now not been transitioned to new tenant(s) via Aug. 1, 2025, IIP will regain complete keep an eye on and PharmaCann will haven’t any additional duties beneath the rentals for those houses
- Per thirty days base hire of $1.3 million shall be abated in complete efficient Feb. 1, 2025.
- In attention of IIP getting into into the rent amendments described above:
- Further fairness capital is being contributed to PharmaCann via positive of PharmaCann’s present traders.
- PharmaCann issued an interest-bearing, secured promissory notice to IIP (the “notice”), which matures Feb. 1, 2035 (or previous upon a transformation of keep an eye on or positive different occasions). The notice is junior to PharmaCann’s current senior secured facility and is secured via all of PharmaCann’s belongings, together with licenses, the place allowed via legislation.
- PharmaCann agreed that, excluding for refinancing the present senior secured credit score facility and the extra fairness investments, it won’t incur further indebtedness with out IIP’s consent till complete compensation of the notice or its cancellation.
- If PharmaCann isn’t ready to refinance its current senior secured credit score facility maturing June 30, 2025, all changes to the rentals described herein will instantly be null and void and the rentals will revert to the phrases in impact as of Jan. 1, 2025, and the notice shall be canceled.
The transactions described above, together with the amendments to the rentals, was efficient on Jan. 28, 2025. Efficient as of such date and apart from the rentals for the Michigan and Massachusetts cultivation houses, IIP rentals to PharmaCann 9 houses in 5 states, constructed from 434,000 sq. ft and representing overall invested and dedicated capital of roughly $223 million, inclusive of the unfunded tenant growth allowance within the New York cultivation rent.
