NEW YORK, May 13, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Acreage Holdings, Inc. has announced it has entered into a Letter of Intent with GreenAcreage Real Estate Corp. (GARE), a newly formed REIT, negotiated at arm’s length, under which GARE would purchase and lease back to Acreage cannabis-related real estate assets. GARE is externally managed by GreenAcreage Management LLC, an entity in which Acreage holds a 20-percent interest and in which its CEO has invested.
The provisions of the Letter of Intent state that GARE would, upon the financing of GARE, purchase properties identified by both parties for values to be mutually agreed upon, fund or reimburse Acreage for real estate improvements and lease said identified properties back to Acreage in accordance with negotiated terms. Acreage would also grant GARE a right of first offer to assume Acreage’s position as a purchaser of a pipeline of properties over the next three years.
GARE will operate initially as an externally-managed company, advised by GreenAcreage, and will remain independent from Acreage. GARE boasts a highly respected and experienced leadership team featuring Executive Chairman Gordon DuGan, Vice Chairman and Founder David Carroll and Chief Executive Officer Katie Barthmaier.