Editor's Note: This is exciting news, and let's hope it goes through. In addition to creating a meeting space for the industry, as well as educational and networking opportunities, and office space for cannabis-related tenants, ACS intends "to work toward a full-service banking solution serving the cannabis industry." Chris Taylor, ACS' CFO, told CBT that the banking solution they are envisioning–and hoping to implement as soon as possible–would serve all legalized cannabis businesses, not just ancillary businesses.
Chris TaylorChris Taylor
[Press Release] COLORADO SPRINGS, CO--(Marketwired - October 2014) - Advanced Cannabis Solutions (OTC: CANN), a service provider to businesses in the regulated cannabis industry, announced today that it has entered into a Letter of Intent to acquire a 15,000 square foot commercial real estate facility in Denver, Colorado.
ACS intends to re-purpose the former retail bank into a multi-tenant office building that will, among other things, provide the largest shared workspace environment purely dedicated to participants serving the cannabis industry. The building will be re-branded as "The Greenhouse" and will serve non-regulated ancillary businesses to the cannabis industry, as well as providing educational and networking opportunities for licensees. The purchase of the bank is expected to close by October 17 and tenant occupancy to begin shortly thereafter.
It is central to The Greenhouse's strategy to leverage the existing bank infrastructure contained within the premises. The building has a traditional retail bank build-out, which includes two drive-through windows and six teller windows with cash management workstations. The existing vault has a steel door, is built of reinforced concrete, and contains over 2,000 safety deposit boxes. It is the intent of ACS to work toward a full-service banking solution serving the cannabis industry.
The 5,400+ square foot main level provides a unique meeting place that can be used for industry functions, including educational seminars that highlight ACS' proprietary consulting services. ACS is considering how to best maximize the bank related assets located within the premises.
Robert Frichtel, Chief Executive Officer of ACS, commented, "The Greenhouse is our most exciting project to date. We believe we are in the unique position to provide the space and services that new cannabis related businesses need. In addition to the traditional shared office space resources of internet access, conference rooms and coffee, The Greenhouse will serve as a hub of intellectual capital, and a meeting place for the industry."
Mr. Frichtel continued, "We see The Greenhouse as a complementary extension of our real estate business plan. While we are currently in the business of providing built-out real estate to regulated producers, we noted the tremendous demand for office space for non-regulated ancillary businesses. Our initial tenants will likely be businesses which provide services in the finance, insurance, legal, real estate, internet, print and other businesses that serve the cannabis industry. It is anticipated that in addition to cash rent, in certain circumstances, ACS may acquire equity interests in The Greenhouse tenants."
Michael Feinsod, Chairman of ACS, noted, "The Greenhouse marks a turning point for the Colorado cannabis industry -- filling a need for niche office space, access to investment capital, and cannabis industry specific expertise. We believe this will provide a solution that is missing in the market. The facility is unique, with more than 75 parking spaces and access from two major roads in a high-traffic location." Mr. Feinsod continued, "The Greenhouse is the perfect platform for ACS to continue to provide commercial real estate solutions and launch our new finance division. The physical plant of the bank provides numerous opportunities to partner with other financial institutions. The potential to acquire equity interests in certain tenant businesses also provides a new dynamic for our business plan and potential for the Company."
The Greenhouse will serve as ACS's new headquarters. The Company intends to re-purpose its existing Colorado Springs offices into a regional version of The Greenhouse, providing similar services as those provided by the Denver building to the Southern Colorado Cannabis Marketplace.
About Advanced Cannabis Solutions
Advanced Cannabis Solutions, Inc. provides services to the regulated cannabis industry throughout the United States. We will lease growing space and related facilities (commercial real estate and equipment) to licensed marijuana business operators for their production needs.
We are pursuing ancillary business products and services including customized finance, capital formation, banking, regulatory compliance consulting and advanced logistical support for grow operations.
ACS does not grow, harvest, distribute or sell cannabis or any substances regulated under United States law such as the Controlled Substances Act, nor does it intend to do so in the future.
