AmeriCann, Inc. (OTCQX: ACAN) is engaged in the consulting, designing, construction, and financing to approved, licensed marijuana companies. Shares of the marijuana cannabis company are rallying 31.86%, through early trading on Thursday, October 27, 2016. Over the past three months, AmeriCann, Inc. has seen average daily volume of 25,151 shares. However, nearly 145,050 shares or dollar volume of $348,120, has already exchanged hands through early trading Thursday.
Shares of AmeriCann, Inc. are rallying Thursday, after management announced the company has acquired a large-scale commercial property in Massachusetts, from the Boston Beer Company, Inc. (NYSE: SAM). AmeriCann, Inc. will pay the Boston Beer Company, Inc. $4,475,000 for the commercial property, which will be turned into a “state-of-the-art medical cultivation” facility. AmeriCann, Inc. says that construction and development of the new facility will begin in early 2017 and is estimated to be complete by the end of 2017. Here is the full press release of the new medical marijuana processing center:
AmeriCann, Inc. Press Release:
DENVER, CO / ACCESSWIRE / October 26, 2016 / AmeriCann, Inc. (ACAN), a company that plans to develop sustainable, state-of-the-art medical cannabis cultivation properties, has completed its acquisition of a nearly 53-acre property from Boston Beer Company (NYSE:SAM) for $4,475,000.
The Company plans to develop the property as the Massachusetts Medical Cannabis Center (the “MMCC”), one of the largest and most technologically advanced cannabis cultivation facilities in the nation.
Designs for the MMCC include the construction of sustainable greenhouse cultivation, processing, and infused product facilities that will be leased or sold to Registered Marijuana Dispensaries under the Massachusetts Medical Marijuana Program.
The Company has received unanimous approval from the Town of Freetown Planning Board for the development of 977,000 square feet of cannabis cultivation and processing infrastructure on the property. In addition, AmeriCann has signed definitive agreements with a provisionally licensed organization to become the initial tenant in the planned MMCC.
As part of the closing transaction, AmeriCann transferred the property to a real estate investment group, Massachusetts Medical Properties, LLC and entered into a 50-year lease with options to extend for an additional 40 years. The sale-leaseback transaction allows AmeriCann to focus on raising capital to build revenue-generating infrastructure on the property.
When fully developed, the MMCC is projected to create over 300 jobs with an annual projected payroll of over $14 million to the local community. Construction is expected to commence in early 2017 with first cannabis produced by late 2017.
AmeriCann and Freetown officials have been engaged in the approval process for over a year and the town has provided strong support for the MMCC. The Freetown planning board gave unanimous approval to the development plans in a public forum. Planning Board Chairman Kevin Desmarais closed the meeting by saying, “This has been one of the better public processes with which I’ve been involved.”
Twenty-five states and the District of Columbia have regulated the use of cannabis. Additionally, nine states with over 30% of the United States population will be voting on November 8th regulating the sale of cannabis for medicinal or recreational use. Most ballot measures favoring cannabis are polling favorably.
The respected Wall Street firm of Cowen & Co recently released a research report projecting dramatic growth for the regulated cannabis industry from the current $7 billion nationally to over $50 billion in ten years.
The Massachusetts Medical Use of Marijuana Program, which was approved by voters in 2012 by a wide margin, continues to be one of the highest regarded medical cannabis programs in the nation by industry experts even with the first dispensaries having only recently opened. The first phase plans for MMCC are based on demand from the existing medical market. AmeriCann will monitor the vote in Massachusetts on adult use and may modify the planned capacity accordingly.
“The state [Massachusetts] could become one of the biggest regulated cannabis markets in the country; bigger than Colorado and Washington State,” according to Marijuana Business Daily. The Boston Globe recently reported the regulated cannabis market in Massachusetts may exceed $1 billion by 2020.
“There is a lack of existing and planned cultivation infrastructure in the Massachusetts market which creates the opportunity for developing MMCC,” stated Tim Keogh, CEO of AmeriCann. He went on to say, “in addition, the size of the project, as well as the design of the facility using our Cannopy System, will produce sun-grown cannabis in a more cost effective manner than traditional indoor facilities creating a significant competitive advantage.”
The Boston Globe, in reporting on the Freetown property acquisition stated, “Advocates have repeatedly complained that Massachusetts has too few medical marijuana dispensaries and growing facilities, and the legal marijuana available is too expensive – problems Keogh hopes the Freetown complex will help solve.”
According to Matt Karnes, Founder and Managing Partner of the respected NY-based cannabis industry research firm GreenWave Advisors, “We believe that the future of the cannabis industry is large-scale, energy efficient greenhouse cultivation and processing. AmeriCann is well positioned at the forefront of this development.”
About AmeriCann, Inc.
AmeriCann, Inc. is a publicly traded company that plans to develop and lease sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in the planning and design stages of development. The Company has designed a proprietary line of cannabis infused products which will be branded and licensed to companies in regulated markets.
AmeriCann, Inc. is a Certified B Corp, an acknowledgment of the company’s commitment to social and environmental ethics, transparency and accountability. AmeriCann became the first public cannabis company to earn this respected accreditation. More information about the Company is available at: www.americann.co.