AmeriCann's Massachusetts Venture Completes First Cannabis Harvest
March 31, 2020 at 08:30 AM EDT
New Massachusetts Facility is Supplying Much Needed Medical Cannabis
DENVER, CO / ACCESSWIRE / March 31, 2020 / AmeriCann, Inc. (OTCQB:ACAN) a cannabis company that is developing state-of-the-art cultivation, processing and product manufacturing facilities, announced the first harvest at its new state-of-the-art cannabis cultivation and processing facility.
AmeriCann's Joint Venture partner recently commenced operations at AmeriCann's Massachusetts Cannabis Center ("MCC") in Freetown, MA. The initial phase of the development, Building 1, is a 30,000 square foot cultivation greenhouse and processing facility, 100 percent of which is occupied by Bask, Inc., an existing Massachusetts licensed vertically integrated cannabis operator.
Bask completed its initial cannabis harvest at Building 1 and is ramping up production to meet the growing needs in Massachusetts. Building 1 is an operating, licensed medical cannabis cultivation and processing facility, which supports Bask's medical dispensary, home delivery service, and wholesale partners.
"We are proud that we have been able to deliver this advanced, sustainable cultivation facility at this important time," stated AmeriCann CEO Tim Keogh. "Medical cannabis has been designated an essential business in Massachusetts and the initial building at our Massachusetts Cannabis Center is serving an important role in the supply chain of medicine for The Commonwealth."
Massachusetts has implemented a "Stay at Home Advisory" in response to the COVID- 19 pandemic. Massachusetts Governor Baker deemed medical cannabis businesses as an essential service and encouraged medical cannabis businesses to continue to operate during this advisory.
To ensure business continuity and the safety of its patients and employees, AmeriCann and Bask have proactively adopted operational improvements based on guidance from the Center for Disease Control, the Cannabis Control Commission and other agencies from the Commonwealth.
During the 15-year Joint Venture for Building 1, AmeriCann will receive Base Rent and a Revenue Participation Fee from Bask of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced. Annually, the facility is projected to produce 7,500 pounds of dry flower cannabis and over 400,000 units of infused product.
The Massachusetts cannabis market has some of the highest cannabis prices in the United States, with wholesale prices exceeding $4,000 per pound and retail prices greater than $8,000 per pound.
The Massachusetts Cannabis Center is being developed on a 52-acre parcel located in Southeastern Massachusetts. The MCC project is permitted for 987,000 sq. ft. of cannabis cultivation and processing infrastructure, which will be developed in phases, and plans to support both the existing medical cannabis and the adult-use cannabis markets.
AmeriCann (OTCQB:ACAN) is a cannabis company that is developing cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25 percent fewer lights, and utility bills are up to 75 percent less than in typical warehouse cultivation facilities. As such, AmeriCann's Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs.
AmeriCann is also designing GMP Certified cannabis extraction and product manufacturing infrastructure. Through a wholly-owned subsidiary, AmeriCann Brands, Inc., the Company intends to secure licenses to produce cannabis infused products including beverages, edibles, topicals and concentrates. AmeriCann Brands, Inc. plans to operate a Marijuana Product Manufacturing business at the Massachusetts Cannabis Center with over 40,000 square feet of state-of-the art extraction and product manufacturing infrastructure.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company's forward-looking statements, please see the Company's Registration Statement on Form S-1 which may be viewed at www.sec.gov.
SOURCE: AmeriCann, Inc.
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