Harvest Health & Recreation has entered into an agreement to form Aina We Would, LLC, a new captive real estate investment vehicle that plans to provide funding for cannabis-related real estate asset acquisitions.
In addition to a Harvest subsidiary, AWW is comprised of two family offices, Aina Advisors LLC Aina and Stadlen Family Holdings, LLC Stadlen.
Aina and Stadlen have committed to fund or arrange up to $100 million to fund AWW projects they approve.
AWW, through the participation of its members, plans to focus on serving clients in the cannabis marketplace and combines deep family office private wealth management advisory capabilities, cannabis-industry and real-estate development expertise, and an extensive cannabis industry real-estate footprint.
AWW plans to buy, develop and finance new construction projects, engage in land purchases, capital improvements and sale-leasebacks to Harvest and other operators in the cannabis industry.
AWW plans to offer Harvest lease rates below current market providers and then source permanent financing for the properties it acquires.
In addition to financing, Harvest may use AWW for its construction and real-estate development needs.
In addition, Harvest has committed to lend AWW a minimum of up to $30 million in short-term financing to permit AWW to seek out acquisition projects, each of which is subject to the approval of AWW and Harvest in their sole discretion.
These funds will be replaced by permanent financing provided or sourced by Stadlen and Aina.
Harvest owns more than 40 cannabis licenses with a domestic footprint that includes real estate, equipment and other assets in 11 states, including Arizona, Arkansas, California, Colorado, Florida, Maryland, Massachusetts, Nevada, North Dakota, Ohio and Pennsylvania.
Selected existing and new projects are expected to be folded into AWW.
“AWW gives Harvest an excellent funding option for the development of cultivations, manufacturing facilities and dispensaries.”
Steve Gutterman, Harvest
Harvest President Steve Gutterman said: “AWW gives Harvest an excellent funding option for the development of cultivations, manufacturing facilities and dispensaries.
“This new vehicle, combined with the approximate $290 million we raised in conjunction with our recent debt and equity financing transactions, affiliate roll-up, and recently completed acquisitions leading up to and following our listing on the CSE, gives us one of the strongest balance sheets in the industry.
“To create AWW, we brought together the perfect trifecta of real estate, investment and cannabis experts.”
“Real estate is the lifeblood of the cannabis economy and a huge piece of any company’s bottom line.”
Jason Vedadi, Harvest
Harvest Executive Chairman Jason Vedadi added: “Real estate is the lifeblood of the cannabis economy and a huge piece of any company’s bottom line.
“With this partnership, AWW has been structured to turn a significant cost center into a potential profit driver and to become a potentially attractive source of financing for Harvest’s expected expansion.”
In November 2018, Harvest Health & Recreation acquired 100% of the issued and outstanding common stock of San Felasco Nurseries.Cannabis Business Worldwide