PHOENIX, August 31, 2021 / PRNewswire / – Item 9 Labs Corp. (OTCQX: INLB) ( “Company”), a vertically integrated franchisor and cannabis dispensary operator that produces premium, award-winning products, has entered into an agreement US $ 19 a construction finance loan from the Pelorus Equity Group (“Pelorus”), a leading provider of complementary commercial real estate loans for cannabis businesses and cannabis-related property owners.
The proceeds will be used to expand the company’s main cultivation and laboratory area in the city. Coolidge, Arizona (The “Arizona Facility”), as well as the completion of its existing 20,000 square foot facility in St. Pahrump, Nevada (“Facility in Nevada”) … The company grows and produces a range of premium Item 9 Laboratories of cannabis products at a plant in Arizona since 2017. The Nevada plant will begin operations in early 2022.
It should be noted that this transaction does not have a dilutive effect for shareholders, as no shares are issued.
Site extension Arizona Master Cultivation
The proceeds from the high-performance Pelorus loan will be used to finance the acquisition of 45 acres of land adjacent to the company’s existing 19,200 square foot facility in Arizona. Feet. The Company currently owns 5 acres that house an existing facility that includes two steel buildings. The main development of the site consists of six additional steel buildings (just under 10,000 sq. Ft. Each) – one will be dedicated to expanding the laboratory and auxiliary space for finished products, and the other five for indoor growing – as well as 16 greenhouses and 6 greenhouses ( or auxiliary buildings for greenhouses). When completed, Item 9 Labs will span over 640,000 sq. Feet of operating space. This includes 5 acres of open field cropland, which is a good time since the city Coolidge adopted the outdoor growing rules earlier this year.
“This agreement puts Item 9 Labs Corp. in an excellent position to grow with Arizona an emerging adult market and still leading the way, “said Andrew Bowden, CEO of Items 9 Labs. “To assess the scale of this transaction, we reached seven quarters in a row revenue growth and regularly break monthly sales records for all of our 19,200 square feet facility. Imagine doing another 620,000 square feet. ”
The Item 9 Labs product catalog covers over 75 active strains of cannabis and over 150 differentiated cannabis vape products as well as Orion premium concentrates and vape technology. Item 9 Labs is currently the most sought-after brand, accounting for over 60% Arizona dispensaries, LeafLink reports. Industry analysts expect Arizona the total legal marijuana market will be about $ 1.5 billion in the next three years…
Construction of the first phase will begin in early October and is estimated to be completed in mid-2022. The first stage development consists of three steel buildings and two greenhouses. This initial expansion adds 9,600 sq. Ft indoor grow, 9,600 sq. Ft of laboratory and packaging and 9,600 sq. Ft of headroom to support the addition of two 18,000 sq. Feet. Upon completion, Item 9 Labs will increase its premium flower production by 30-35% and reduce reliance on third-party materials for laboratory production by 40-50%. Item 9 Labs plans to hire 60-70 people in growing, processing and packaging positions to support new operations from the start.
Expansion of the growing site in Nevada
Item 9 Labs will also use the proceeds to complete the 20,000 sq. M. State-of-the-art facility. Feet to g. Pahrump, Nevada which is currently about 60% complete. The extension includes 4450 sq. Feet for flowers, 990 sq. Ft for vegetation, 400 sq. Ft for clones, 300 sq. Ft dry and 615 sq. Feet for genetics. The facility also includes over 2,500 sq. Ft of post-processing and laboratory space, and the possibility of a joint venture with a 1,100 sq. Feet. The rest of the building is ancillary rooms such as water rooms. , offices, changing rooms and lounges. Upon completion at the end of 2021, the Company will grow and produce for partners dispensaries throughout the Silver State.
“We are delighted led to collaboration with Item 9 Labs on these exciting new commercial real estate and development projects in Arizona and Nevada – two fast growing states with high demand for adult use, “said Dan Leimel, CEO of Pelorus Equity Group and Manager of Pelorus Fund. “Our team was delighted to quickly approve the company’s loan so that it can continue to offer consumers the premium products they are known for, generate new revenue streams and add value to its shareholders. We look forward to working closely with Item 9 Labs. and other cannabis operators on additional state-of-the-art projects as we rapidly expand our portfolio. “
Item 9 Labs Corp., Chief Financial Officer Bobby Mikkelsen said: “Pelorus moved quickly on our challenging deal and was able to help overcome numerous obstacles to closure when other previous potential lenders failed to meet their commitments. With the Pelorus team on our side supporting our growth plans, we are in a tough spot. a strong position to complete our expansion and capture more market share. “
About Pelorus Equity Group
Pelorus Equity Group is a leading provider of value-added commercial real estate bridging loans in the multi-billion dollar cannabis industry. Company Pelorus Foundation, a private mortgage real estate investment fund (mREIT), offers a range of innovative transactional solutions to meet the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are a direct result of our involvement in other projects. more than 5000 transactions of various sizes and complexity. Since 1991, our leaders have participated in more than $ 1 billion real estate transactions using both debt and equity solutions. We draw on our extensive experience to quickly understand the opportunity, structure the logical solution, and execute timely closings. For more information visit https://www.pelorusequitygroup.com/…
About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor supplying premium products from its large growing and manufacturing facilities in United States… The award-winning Item 9 Labs brand specializes in best-in-class products and user-friendliness across multiple cannabis categories. The company also offers a unique dispensary franchise model across the national Unity Rd. retail brand. By lowering barriers to entry, a franchise empowers both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support they need to successfully and consistently thrive in their state. Item 9 Labs brings industry best practices to markets across the country through excellent retail experience, cultivation opportunities, and product innovation. The experienced management team combines a wide range of skills with extensive experience in the cannabis sector, franchising and capital markets to lead a new generation of publicly traded cannabis companies that deliver transparency, consistency and well-being. The company is headquartered in Arizona. The company is currently expanding its 650,000-square-foot facility on its 50-acre site, one of the largest growing and growing flower plots in Arizona. For more information visit item9labscorp.com …
This press release contains forward-looking statements within the meaning of the safeguard provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including but not limited to risks and consequences of legal and administrative proceedings and government regulations, especially in a foreign country, future financial and operating results, competition, general economic conditions, proposed transactions that are not legally binding companies, and the ability to manage and continue to grow. Should one or more of these risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results could differ materially from those stated. Important factors that could cause actual results to differ materially from the forward-looking statements that we make in this press release include the introduction of new technologies, market conditions and those set forth in reports or documents that we from time to time we send to the SEC. We do not undertake any obligation to revise or update such statements to reflect current events or circumstances after the date specified in this document, or to reflect the occurrence of unforeseen events.
Item 9 Laboratories
Jane Levy, Vice President of Communications
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Item 9 Laboratories
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SOURCE Item 9 Labs Corp.