ATLANTA, May 14, 2021 /PRNewswire/
-- Parallel (the "Company"), one of the largest
privately-held multi-state cannabis operators in the United States (U.S.), today announced the
completion of a sale-leaseback transaction (the "Transaction"), in
which Parallel sold its Pittsburgh,
Pennsylvania warehouse to, and entered into a long-term
lease agreement with, an affiliate of Innovative Industrial
Properties, Inc. (IIP) (NYSE: IIPR), the first and only real estate
company on the New York Stock Exchange focused on the regulated
U.S. cannabis industry. The deal is valued at approximately
$68 million.
Proceeds from the transaction will be used to complete the
initial build-out of a warehouse in Pittsburgh that will be used as goodblend™
Pennsylvania's (goodblend)
state-of-the-art cannabis growing and processing facility when it
is expected to begin operations in mid-2021. A retail brand of
Parallel, goodblend is one of eight vertically integrated Clinical
Registrants in the Commonwealth and was granted a license in
partnership with the University of
Pittsburgh School of Medicine in August 2020. In 2021, goodblend intends to open
its growing and processing facility as well as two approved retail
facilities in Pittsburgh and
Erie, and will work to identify
and open four additional allowed retail locations.
"This marks the fourth sale-leaseback transaction we've
conducted with IIP, representing total proceeds of approximately
$195 million in deal value to date.
The collaboration with IIP supports our growth in Florida, Texas, and now Pennsylvania and helps us advance our mission
to improve the quality of life through cannabinoids," said William
"Beau" Wrigley Jr., Chairman and CEO for Parallel. "Completion of
our growing and processing facility is an important step as we
enter the growing Pennsylvania
cannabis market. While we were granted our Clinical Registrant
license in the Commonwealth in August
2020, which includes a Clinical Research Partnership with
the University of Pittsburgh School of
Medicine, we now look forward to serving customers at our first
goodblend retail stores in Pittsburgh and Erie, which we intend to open this
summer."
Following the completion of phase one of the renovation, the
Pittsburgh warehouse will have
approximately 124,000 square feet of usable space by Parallel with
an additional 36,000 square feet available for future
expansion.
"goodblend Pennsylvania is
already hiring for the hundreds of new jobs that we ultimately
expect to create in Western
Pennsylvania. We have also begun local job recruitment
initiatives and expungement programs to support inclusion and
economic empowerment within the Commonwealth. Wherever possible, we
focus on hiring local and outreach and training for workers in
underserved communities," said Elizabeth
(Liz) Conway, Regional President, Parallel and goodblend
Pennsylvania.
Pennsylvania, with almost 13
million residents, is the sixth most populous state in the U.S. The
Commonwealth's Medical Marijuana Program today has more than
425,000 registered patients.
About goodblend Pennsylvania
goodblend Pennsylvania is a
retail brand of Parallel and was granted a vertically-integrated
Clinical Registrant license in partnership with the University of Pittsburgh School of Medicine in
August 2020. The Clinical Research
Partnership with University of
Pittsburgh School of Medicine, one of the leading medical
research schools in the world, will initially focus on the impact
of medicinal cannabis on various symptoms of sickle cell disease
and chronic pain.
The goodblend retail brand reflects Parallel's intent to lead
the way to the future of cannabis by providing its customers a
trusted, consistent, and seamless way for them to connect and
learn, and to access innovative, high-quality cannabis products in
a variety of form factors and to elicit such a positive
experience that they come back again and again. The brand is about
welcoming every type of customer and being an approachable source
of products and information to support our customers'
well-being. The ethos of goodblend is based on Parallel's
commitment to compliance, quality and innovation, and on our
actions to improve diversity, inclusivity and economic empowerment
in the cannabis industry, and to be a great employer and local
community partner.
About Parallel
Parallel is one of the largest privately-held, vertically
integrated, multi-state cannabis companies in the United States with a mission to pioneer
well-being and improve the quality of life
through cannabinoids. Parallel recently announced that it
intends to become a public company through a definitive business
combination agreement with Ceres Acquisition Corp. ("Ceres") (NEO: CERE.U, CERE.WT; OTCQX: CERAF),
a special purpose acquisition corporation (SPAC). Parallel has
ongoing operations in four medical and adult-use markets under the
retail brands of Surterra Wellness in Florida; goodblend in Texas; New
England Treatment Access (NETA) in Massachusetts, and The Apothecary
Shoppe in Nevada. Parallel
also has a license under
its goodblend Pennsylvania brand for vertically
integrated operations and up to six retail locations, in addition
to a medical cannabis research partnership with the
University of Pittsburgh School of
Medicine. Subject to regulatory approval, Parallel will add
Illinois as a sixth market when
its recently announced acquisition of six Windy City Cannabis
licenses is complete. Parallel has a diverse portfolio of high
quality, proprietary and licensed consumer brands and products
including Surterra Wellness, Coral
Reefer, Float and Heights. Parallel operates approximately
50 locations nationwide, including 42 retail stores, and
cultivation and manufacturing sites. Through its wholly-owned
Parallel Biosciences subsidiary, it conducts advanced cannabis
science and R&D for new product development in its facilities
in Massachusetts, Florida, Texas and a facility in Budapest, Hungary through an exclusive license
and partnership. Parallel follows rigorous operations and business
practices to ensure the quality, safety, consistency, and efficacy
of its products and is building its business by following strong
values and putting the well-being of its customers and employees
first. Find more information at www.liveparallel.com, or
on Instagram and LinkedIn.
Media Contact
Taylor
Foxman
tfoxman@liveparallel.com
Investor Contact
Investors@liveparallel.com
Forward Looking
Statements
Forward-looking information in this news release is based on
assumptions and cannot be assured within the meaning of applicable
Canadian securities legislation and U.S. securities law (referred
to herein as forward-looking statements), including statements
regarding the Transaction and expected future growth. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements, which include, but are not
limited to, statements related to activities, events or
developments that Parallel or Ceres expects or anticipates will or may occur
in the future, statements related to Parallel's business strategy
objectives and goals, and Parallel's management's assessment of
future plans and operations which are based on current
internal expectations, estimates, projections, assumptions and
beliefs, which may prove to be incorrect. Forward-looking
statements can often be identified by the use of words such as
"may", "will", "could", "would", "should", "anticipate", 'believe",
expect ", "intend", "potential ", "estimate", "budget",
"scheduled", "plans", "planned", "forecasts", "goals" and similar
expressions or the negatives thereof. Such statements are made
pursuant to the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995 and are based on
Parallel's management's belief or interpretation of information
currently available. Forward-looking statements are neither
historical facts nor assurances of future performance.
Forward-looking statements in this press release includes
statements regarding Parallel's investment in new technologies and
products; the development and expansion of Parallel's brands;
Parallel's expansion strategy and plans to grow its market share in
existing and new markets; and strategic acquisition opportunities.
Forward-looking statements are based on a number of factors and
assumptions made by management and considered reasonable at the
time such information is provided, and forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements to
be materially different from those expressed or implied by the
forward-looking statements. There can be no assurance that the
transactions described herein will be completed or that, if
completed, the combined public company will be
successful.
Risk factors that could cause actual results, performance or
achievement to differ materially from those indicated in the
forward-looking statements include, but are not limited to the
following: (i) the risk that the Transaction may not be completed
in a timely manner or at all, which may adversely affect the price
of Ceres' securities, (ii) the
risk that the Transaction may not be completed by Ceres' qualifying transaction deadline and the
potential failure to obtain an extension of the qualifying
transaction deadline if sought by Ceres, (iii) the failure to satisfy the
conditions to the consummation of the Transaction, including the
approval of the Transaction by the stockholders of Ceres and Parallel, as applicable (iv), the
receipt of certain governmental and regulatory approvals, (v) the
lack of a third party valuation in determining whether or not to
pursue the proposed Transaction, (vi) the occurrence of any event,
change or other circumstance that could give rise to the
termination of the business combination agreement, (vii) the impact
of COVID-19 on Parallel's business and/or the ability of the
parties to complete the proposed Transaction, (viii) the effect of
the announcement or pendency of the Transaction on Parallel's
business relationships, performance, and business generally, (ix)
risks that the proposed Transaction disrupts current plans and
operations of Parallel and potential difficulties in Parallel
employee retention as a result of the proposed Transaction, (x) the
outcome of any legal proceedings that may be instituted against
Parallel or Ceres or their
respective, directors, officers and affiliates related to the
proposed Transaction, (xi) the risk that the combined public
company's securities will not be approved for listing on the NEO
Exchange or, if approved, that the combined public company will be
able to maintain the listing, (xii) the price of Ceres' and the combined public company's
securities may be volatile due to a variety of factors, including
changes in the competitive and highly regulated industries in which
Parallel operates, variations in performance across competitors,
changes in laws and regulations affecting Parallel's business and
changes in the combined capital structure and a return on
securities of the combined public company is not guaranteed, (xiii)
the ability to implement business plans, forecasts, and other
expectations after the completion of the proposed Transaction, and
identify and realize additional opportunities, (xiv) the risk of
downturns and the possibility of rapid change in the highly
competitive industry in which Parallel operates, (xv) the risk that
Parallel and its current and future collaborators are unable to
successfully develop and commercialize Parallel's products, brands
or services, or experience significant delays in doing so, (xvi)
the risk that the combined public company may never sustain
profitability, (xvii) the risk that the combined public company
will need to raise additional capital to execute its business plan,
which may not be available on acceptable terms or at all, (xviii)
the risk that the combined public company experiences difficulties
in managing its growth and expanding operations, (xix) the risk
that the pharmaceutical industry may attempt to dominate the
cannabis industry, and in particular, legal marijuana, through the
development and distribution of synthetic products which emulate
the effects and treatment of organic marijuana, (xx) the
agricultural risks related to insects, plant diseases, unstable
growing conditions, water and electricity availability and cost,
(xxi) the risk that may arise because cannabis continues to be a
controlled substance under the United States Federal Controlled
Substances Act, (xxii) the risk of product liability or regulatory
lawsuits or proceedings relating to Parallel's products and
services, (xixii) the risk that the combined public company is
unable to secure or protect its intellectual property, (xxiv) tax
risks, including U.S. federal income tax treatment, (xxv) risks
relating to the reliance of Parallel on key members of management,
(xxvi) risks inherent in businesses related to the agricultural
industry, (xxvii) risks relating to potentially unfavorable
publicity or consumer perception, (xxviii) Parallel may be subject
to the risk of competition from synthetic production and
technological advances, (xxix) investors in the combined public
company and its directors, officers and employees who are not U.S.
citizens may be denied entry into the
United States, (xxx) product recalls, (xxxi) results of
future clinical research, (xxxii) difficulty attracting and
retaining personnel, (xxxiii) fraudulent or illegal activity by
employees, contractors and consultants; information technology
systems and cyber-attacks, (xxxiv) security breaches, (xxxv)
natural disasters and terrorism risk, (xxxvi) restricted access to
banking, (xxxvii) risks related to the lending facilities,
(xxxviii) risks of leverage, (xxxix) heightened scrutiny by
regulatory authorities, (xI) risk of legal, regulatory or political
change, (xli) general regulatory and licensing risks, (xlii)
Parallel and the combined public company may be subject to the risk
of changes in Canadian as well as U.S. federal, state and local
laws or regulations, (xliii) limitations on ownership of licenses,
(xliv) Nevada regulatory regime
and transfer and grant of licenses, (xIv) regulatory action and
approvals from the FDA, (xlvi) constraints on marketing products,
(xlvii) anti-money laundering laws and regulation, (xlviii) the
combined public company's status as an "Emerging Growth Company"
under United States securities
laws, (xlix) discretion in the use of proceeds, (l) subsequent
offerings will result in dilution to shareholders of the combined
public company, (li) voting control, and (lii) unpredictability
caused by capital structure and voting control. Readers are
cautioned that the foregoing list is not exhaustive.
Parallel and Ceres undertake
no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change except as
required by applicable securities laws.
U.S. Disclaimer
Neither the securities of Ceres nor of Parallel have been registered
under the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws and may not be
offered and sold in the United
States except pursuant to an exemption from the registration
requirements of the U.S. Securities Act.
Any securities of either Ceres or Parallel sold in the United States will be "restricted
securities" within the meaning of Rule 144 under the U.S.
Securities Act. Such securities may be resold, pledged or otherwise
transferred only pursuant to an effective registration statement
under the U.S. Securities Act or pursuant to an applicable
exemption from the registration requirements of the U.S. Securities
Act.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/parallel-announces-sale-leaseback-transaction-in-pennsylvania-with-innovative-industrial-properties-for-approximately-68-million-301291516.html
SOURCE Parallel