Benzinga | Sep 20, 2021 12:56PM EDT

Cannabis REIT Innovative Industrial Properties Enters Missouri Via $28.3M Deal With Calyx Peak's Subsidiary

Cannabis-focused real estate investment trust Innovative Industrial Properties, Inc. (NYSE:IIPR) has wrapped up the acquisition of a property in Missouri just a month following the purchase of Hancock, Maryland-based property previously owned by Harvest Health & Recreation Inc. (CSE:HARV) (OTCQX:HRVSF).

The San Diego-based company said Monday it has also entered into a long-term lease with CPC of Missouri -- Smithville, LLC, a subsidiary of Calyx Peak, Inc.

The price tag for the property was $1.53 million, excluding transaction costs.

Under the deal, CPC is obliged to build roughly 83,000 square feet of industrial space at the property. IIP agreed to fund the construction with up to $26.72 million.

"We are excited to announce this new long-term real estate partnership with Calyx, expanding our footprint into Missouri as our 19th state," said Paul Smithers, president and CEO of IIP.

The Massachusetts-headquartered Calyx, which was founded in 2016, operates a 235,000 square foot cannabis cultivation facility in California and is poised to launch construction on a dispensary location in southern California.

Erin Carachilo, CEO of Calyx, and Lee Hoffman of CPC shared Smithers' enthusiasm.

"While less than one year since the launch of Missouri's medical cannabis program, we have witnessed a tremendous rate of adoption by patients and growth in sales throughout the state, and look forward to completing the development of this facility, which will be designed with next-generation systems in a highly controlled environment that will enable us to bring our premium, diversified genetics at scale to Missouri patients," they added.

Over 54,000 Missouri citizens enrolled in the state's medical marijuana program following medical cannabis becoming legal in there on January 1, 2020.

Price Action:

IIP's shares traded 0.32% higher at $ 233.48 per share at the time of writing Monday morning.

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