Metrospaces Signs Binding JV to Acquire Profitable Revenue Producing Licensed Cannabis Facility in California

NEW YORK, NY, Dec. 26, 2018 (GLOBE NEWSWIRE) -- Metrospaces, Inc. announces the execution with DLBCC Group to acquire LBCC Group's cannabis facility and operate under a JV Agreement.

Mr. Oscar Brito, Company Executive President, said: “Approximately in May2018, Metrospaces took a management decision to focus its resources and business plan towards the legalized cannabis industry. Our business plan is to leverage our extensive experience in real estate financing and development to establish JV partnerships to acquire and operate facility or real estate-based cannabis operations. We don’t have the industry expertise to operate a cannabis facility, but we do have extensive experience in construction, acquisition development, financing and repositioning of real estate assets. 

"We are very excited to establish this JV LOI agreement with LBCC Group to acquire, operate and grow this facility. LBCC Group has executed a Property Purchase Agreement with the seller and is set to close in approximately 90 days. A final JV agreement and Purchase Agreement is contingent on transfer of license and senior acquisition funding. Metrospaces would provide the equity portion of the acquisition, agreed at $20 million. Metrospaces would retain 75 percent of the business initially, but LBCC Group can gain an additional 10-percent equity stake based on achievement of certain financial goals.

“The facility is located in the city of Adelanto, California, and consists of a 12,000-sq.-ft. canopy facility licensed for cultivation, manufacture, and distribution of approximately 300 lbs. of monthly cannabis production. This production currently generates approximately $7.2 million in annual revenue with an operating profit of approximately $4.5 million per year.  Additionally, the site is set on a 6.5 acres site which allows to build another (already licensed) 8,000-sq.-ft. canopy. The acquisition also includes a non-operating retail operation.

“This acquisition would introduce us in the cannabis industry through the front door. It’s a very neatly run operation, with substantial upside potential. We think it’s the perfect operation for us to focus after our very positive experience in IQSTel.”

Metrospaces was originally founded by company President Oscar Brito.