AmeriCannInc., which owns medical cannabis facilities, said April 29 that its board unanimouslyapproved a plan to pursue conversion to REIT status.
The company,which trades on the OTCQX market under the ticker symbol ACAN, says it developsand owns facilities that aim "to produce the best possible medical cannabisin the most efficient manner utilizing advanced, sustainable practices."
AmeriCanndoes not cultivate, process or distribute cannabis, partnering instead with localbusinesses to serve marijuana patients, it said in a news release. The company saidit leases facilities to licensed operators exclusively in regulated markets. Ithas more than 1 million square feet of facilities in various stages of developmentin Colorado, Massachusetts, Delaware and Illinois, it said.
"Asmore states join the modernization towards regulated medical marijuana, there willbe a corresponding need to build the infrastructure necessary to serve patientsin these states," Chairman Ben Barton said in the release. "We believethat the REIT structure for us supports this objective and positions us to achievea greater level of profitability and long-term shareholder value."
AmeriCannsaid it hopes to develop and own "a significant portion" of an estimated$27 billion in real estate that the cannabis industry will require nationwide.
"TheREIT status, with the potential for regular tax advantaged quarterly distributions,would provide an ideal structure for AmeriCann to obtain the capital necessary tofund our aggressive development plans," President Tim Keogh said in the release.
As thecompany noted, the process to convert to a REIT is subject to shareholder approvaland requires "third party consents" — most notably, from the IRS.
The companysaid it "has not yet identified a specific conversion date to REIT status."