MINNEAPOLIS, Sept. 28, 2021 /PRNewswire/ -- Goodness Growth
Holdings, Inc. ("Goodness Growth" or the "Company") (CSE:
GDNS; OTCQX: GDNSF), a physician-led, science-focused cannabis
company and IP developer, today announced the closing of a sale
leaseback transaction with Innovative Industrial Properties, Inc.
("IIP") (NYSE: IIPR) in the State of New York.
Goodness Growth sold and IIP acquired approximately 92.3 acres
of land adjacent to Goodness Growth's existing cannabis cultivation
and processing facility in Johnstown, New
York, which was formerly the site of a juvenile detention
center. The purchase price for the land was approximately
$1.2 million, excluding transaction
costs, and IIP is expected to provide tenant improvement
reimbursement to Goodness Growth of approximately $55.0 million for the construction of a new
324,000 square foot cannabis cultivation, processing, and research
and development facility.
Goodness Growth and IIP will partner on the development of the
project and will amend the terms of their existing lease agreement
to incorporate the new facility. At closing, IIP reimbursed
Goodness Growth for qualifying tenant improvements previously
incurred on the project to date of approximately $9.0 million. The initial annualized base rent
will be 10.5% of the tenant improvement budget plus the purchase
price, for a term of twenty years. The lease amendment contains a
rent escalation clause that is triggered in the event that the
Company does not satisfy certain strategic benchmarks as specified
in the Agreement, which would increase annualized base rent by
1.5%. Base rent will be phased in incrementally over the course of
a 16-month period, and will be subject to annual increases of
2.75%.
"We are looking forward to beginning construction on this
state-of-the-art facility in New
York, which will immediately become the flagship cultivation
and processing facility in our Company's portfolio," said Goodness
Growth Chairman and Chief Executive Officer, Kyle Kingsley, M.D. "This facility will produce
the highest-quality indoor flower we've ever produced and help
prepare our business for the massive spike in demand expected when
New York's adult-use cannabis
program goes online next year. This facility will also support the
expansion of our retail network in New
York as we look to open up to four new dispensaries next
year, which would bring our total number of stores in New York to eight."
The new 324,000 square foot facility will contain approximately
100,000 square feet of indoor cultivation capacity, and 90,000
square feet of combined space for manufacturing, processing, office
space, and facilities equipment areas. Approximately 130,000 square
feet of the new facility will be built as shell space for potential
future expansion. The processing labs in the new facility will be
capable of CO2, Ethanol and Hydrocarbon extraction, and will also
be equipped with distillation systems, clean room manufacturing, a
commercial kitchen with automation, and will be GMP-ready. The
facility will allow the Company to produce high-quality flower and
manufacture the full suite of cannabis product form factors,
including vapes, softgels, oils, oral solutions, balms, concentrate
forms, edibles, and beverages.
Goodness Growth is one of ten licensed operators in New York's medical cannabis program, a
vertically integrated program where each licensed operator may
operate one cultivation and processing facility and up to four
dispensary locations. The Company currently operates four
dispensaries in Queens,
White Plains, Albany and Binghamton under the Vireo Health name, as
well as its home delivery business which serves the New York City metro area. The Company plans to
rebrand all its dispensaries in New
York to its Green Goods® national dispensary brand after the
onset of the adult-use program next year.
About Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc., is a physician-led,
science-focused holding company whose mission is to bring the power
of plants to the world. The Company's operations consist primarily
of its multi-state cannabis company subsidiary, Vireo Health, Inc.,
and its science and intellectual property incubator, Resurgent
Biosciences, Inc. The Company manufactures proprietary, branded
cannabis products in environmentally friendly facilities and
state-of-the-art cultivation sites and distributes its products
through its growing network of Green Goods® and other
retail locations and third-party dispensaries. Its team of more
than 500 employees are focused on the development of differentiated
products, driving scientific innovation of plant-based medicines,
and developing meaningful intellectual property. Today, the Company
is licensed to grow, process, and/or distribute cannabis in eight
markets and operates 18 dispensaries across the United States. For more information about
Goodness Growth Holdings, please visit www.goodnessgrowth.com.
Contact Information
Investor Inquiries:
Sam Gibbons
Vice President, Investor Relations
samgibbons@vireohealth.com
(612) 314-8995
Media Inquiries:
Albe Zakes
Vice President, Corporate
Communications
albezakes@vireohealth.com
(267) 221-4800
Forward-Looking Statement Disclosure
This press release contains "forward-looking information" within
the meaning of applicable United
States and Canadian securities legislation. To the extent
any forward-looking information in this press release constitutes
"financial outlooks" within the meaning of applicable United States or Canadian securities laws,
such information is being provided as preliminary financial results
and the reader is cautioned that this information may not be
appropriate for any other purpose and the reader should not place
undue reliance on such financial outlooks. Forward-looking
information contained in this press release may be identified by
the use of words such as "plan," "position," "continue," "will,"
"expects," "pending,"or variations of such words and phrases.
These statements should not be read as guarantees of future
performance or results. Forward-looking information includes both
known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance, or achievements of the
Company or its subsidiaries to be materially different from any
future results, performance, or achievements expressed or implied
by the forward-looking statements or information contained in this
press release. Forward-looking information is based upon a number
of estimates and assumptions of management, believed but not
certain to be reasonable, in light of management's experience and
perception of trends, current conditions, and expected
developments, as well as other factors relevant in the
circumstances, including assumptions in respect of current and
future market conditions, the current and future regulatory
environment; and the availability of licenses, approvals and
permits.
Although the Company believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because the Company can give no
assurance that they will prove to be correct. Actual results and
developments may differ materially from those contemplated by these
statements. Forward-looking information is subject to a variety of
risks and uncertainties that could cause actual events or results
to differ materially from those projected in the forward-looking
information. Such risks and uncertainties include, but are not
limited to, risks related to current and future economic
conditions; risks related to the COVID-19 pandemic; federal, state,
local, and foreign government laws, rules, and regulations,
including federal and state laws in the
United States relating to psychedelics and any changes
to such laws; operational, regulatory, and other risks; execution
of business strategy; difficulty to forecast; conflicts of
interest; liquidity and additional financing; and risk factors set
out in the Company's Annual Report on Form 10-K for the year ended
December 31, 2020, which is available
on EDGAR with the U.S. Securities and Exchange Commission and filed
with the Canadian securities regulators and available under the
Company's profile on SEDAR at www.sedar.com.
The statements in this press release are made as of the date of
this release. The Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results, or otherwise, other than as
required by applicable securities laws.
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SOURCE Goodness Growth Holdings, Inc.