UCASU signed LOI to acquire second cannabis property

Rhea-AI Summary

UC Asset LP (OTCQX: UCASU) has signed a letter of intent (LOI) to acquire a 5-acre cannabis growth facility in Oklahoma for $440k. This property includes two grow buildings and is expected to generate a minimum gross revenue of $120k per month. This acquisition follows another LOI for a 4-acre property negotiated down to $500k. With over $800k cash available, the company aims to expand its portfolio by $10-30 million this year, primarily with cannabis properties. UC Asset is also planning a secondary public offering to support this growth.

Positive

• Expected gross revenue of $120k per month from the new property.
• Aiming to expand investment portfolio by $10-30 million in cannabis properties.
• Engaging with investment bankers for a secondary public offering to support growth.

Negative

• No underwriter agreement reached for the upcoming secondary public offering.

ATLANTA, Feb. 01, 2022 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQX: UCASU) announced the firm has signed an LOI to acquire a second Oklahoma cannabis property, for a consideration of $440k. The property is a 5-acre licensed cannabis growth facility, including 2 grow buildings and a single wide trailer.

UC Asset has engaged a licensed grower who will likely lease the property once it is officially acquired. According to the grower, operations from this facility may generate a gross revenue of a minimum of $120k per month, based on the current market condition.

This is the second cannabis property UC Asset has a signed an LOI to acquire. Last month, UC Asset signed an LOI to acquire a 4-acre licensed grow property in Oklahoma City area. The acquisition price for the first property has been negotiated down to $500k since the initial signing of the LOI.

“After careful consideration of all factors, we believe the second opportunity could prove more lucrative even than the first,” says Greg Bankston, managing general partner of UC Asset. “Depending on the availability of our capital and other reasons, we may opt to close on one or both properties, in the coming weeks,” Bankston reveals.

According to its SEC filings, the company had over $800k cash at the end of 2021’s third quarter. Since then, the company has exited more investment in its portfolio.

If UC Asset acquires the property, it will lease the property to licensed growers, implementing a business model similar to other established public companies, such as Power REIT. In February 2020, Power REIT announced expanding its portfolio in greenhouses for both food and cannabis cultivation. In less than 2 years since this announcement, its stock price has soared from $8.45 (February 03, 2020) to $73.01 (January 18, 2021), an increase of more than 860%. 

With a goal to replicate Power REIT’s success, UC Asset has developed a pipeline for cannabis property deals, in several states including Oklahoma, Florida and Michigan, as well as opportunities in its home state Georgia. Additionally, the company entered into an umbrella LOI deal to invest into cannabis properties operated by OTC company PURA Inc (OTC Pink: PURA).

Altogether, UC Asset expects to expand its investment portfolio by $10 – 30 million this year, mostly of cannabis properties.

To support this growth, the company has announced that it will file Form S-1 for a secondary public offering. It has started to. Larry Wu, founder of UC Asset, confirms that the company has been engaging investment bankers for a firm commitment underwriting. However, the company has not reached agreement with an underwriter, and is open to discuss with any interested investment bankers.

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA.  For more information about UC Asset, please visit: www.ucasset.com 

Disclaimer:
This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

For More Information Contact:

Christal Jordan | Executive Director, UC Asset LP

cjordan@ucasset.com | 678-499-0297

Attachments

• UC Asset LP signed LOI to acquire second cannabis property
• UC Asset LP signed LOI to acquire second cannabis property
• UC Asset LP signed LOI to acquire second cannabis property

FAQ

What is UC Asset LP's recent acquisition?

UC Asset LP signed an LOI to acquire a 5-acre licensed cannabis growth facility in Oklahoma for $440k.

How much revenue is expected from the new cannabis property?

The new property is projected to generate a minimum gross revenue of $120k per month.

What is the total investment expected this year by UC Asset?

UC Asset expects to expand its investment portfolio by $10-30 million this year, focusing on cannabis properties.

How is UC Asset planning to finance its expansion?

UC Asset is planning to file for a secondary public offering to finance its expansion.

What is the significance of the LOI with the second property?

The second LOI represents UC Asset's strategic expansion into the cannabis market, potentially increasing revenue streams.