Atlanta, Jan. 12, 2023 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQB: UCASU) announces today that the company has entered a MOU to acquire a 10,000 square foot cannabis cultivation property in the State of Oklahoma, through a non-cash acquisition and investment deal. Upon closing, UCASU will invest $1 million to build extra 5,000 square feet of cannabis cultivation facility on the same spot.
The current operator on the property, Fire Ranch Farm, will continue to rent the property from UC Asset. UC Asset expects to receive monthly rents representing a 14.4% cash on cash annual return.
The lease is locked for 3 years, and monthly rent will increase by 5% every 24 months after the first 3 years.
The non-cash acquisition will be done through the issuance of 2.5 million preferred shares of UC Asset to the current property owner. Those preferred shares will have a fixed conversion rate of 1 to 1, which means that one preferred share may be converted into one common share, and one common share only, when conversion will be allowed in the future.
Holder of the preferred shares will receive no dividends from UC Asset, unless those preferred shares are converted into common shares. Meanwhile, common share holders will continue to receive cash dividends, shall UC Asset decided to distribute any.
“We are very grateful to be able to work with a cannabis property owner, who firmly believes in the future of our company and is willing to trade near-term cash revenue for long-term equity return,” says Greg Bankston, managing general partner of UC Asset. “That’s why he agrees to contribute his property to us for equity ownership, seeking neither cash payment nor cash dividend.”
“In return, our company has committed to invest $1 million in the first 12 months, and will commit much more than that amount, to continuously expand the acquired cannabis property, and to acquire and build more cannabis properties. Our goal is to become one of the largest cannabis property owners in the State of Oklahoma,” declares Bankston.
This 10,000 square foot cannabis property, according to Bankston, is built to the state-of-art standard, with computerized and automatized environment control, and has the capacity to host full cycle cannabis production from creating clones/genetics to extracting cannabinoids.
“This will be our first cannabis property, and it is our one and only selection after screening numerous opportunities in the past 15 months,” says Larry Wu, founder of UC Asset. “Since we announced our intention to invest in cannabis property in October 2021, our team have made hundreds of phone calls to potential sellers, screened tens of opportunities, and conducted research in 5 different states, including Colorado, California and New York. That is why we are so optimistic of our final choice.”
“We believe that Oklahoma is the future for cannabis cultivation, and our investment in the Sooner State will lead us to great success, sooner than later,” asserts Wu.
About UC Asset LP
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies. For more information about UC Asset, please visit: www.ucasset.com
Disclaimer:
This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.
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