NEW CANAAN, Conn., July 06, 2022 (GLOBE NEWSWIRE) — NewLake Capital Partners, Inc. (OTCQX: NLCP) (the “Company” or “NewLake”), a leading provider of real estate capital to state-licensed cannabis operators, today is announcing $50 million of investments across three properties, marking the full commitment of capital raised during the Company’s initial public offering. NewLake acquired two properties from a leading publicly-traded U.S. multi-state cannabis operator (MSO) and amended its existing lease with another leading publicly-traded U.S. MSO to fund an already completed expansion. As of June 30, 2022, NewLake has approximately $28.7 million of unfunded commitments.

The two properties NewLake acquired include an approximately 38,000 square-foot operational cultivation facility in Pennsylvania for $14.5 million and an approximately 56,500 square-foot operational cultivation facility in Nevada, a new market for NewLake, for $13.6 million. NewLake is also providing an additional $750,000 for tenant improvements at the Pennsylvania property. NewLake’s $21.0 million investment in an existing operational cultivation facility funded an approximately 50,000 square foot expansion as well as other capital improvements at the site.

“We are excited to announce these transactions, where 98% of our capital commitment was funded at closing. Through these transactions, we have added a new publicly-traded MSO Tenant partner, a new market to NewLake’s portfolio and taken advantage of built-in growth in our portfolio,” said David Weinstein, NewLake’s Chief Executive Officer. “With capital available from our credit facility, we continue to have runway to invest in the U.S. cannabis industry.”

About NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 31 cultivation facilities and dispensaries that are leased to single tenants on a triple-net basis, and has provided two loans aggregating $35 million. For more information, please visit www.newlake.com.

Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements, including statements regarding the timing of settlement and the use of proceeds of the initial public offering, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.

NewLake Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

NewLake Media Contact:
McKenna Miller
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

50% Revenue Growth Year-over-Year and 188% Increase in Cash Provided by Operations in 2021

National Advisory & Brokerage Clients in New State Markets Set the Stage for Company Expansion

SCOTTSDALE, Ariz., March 24, 2022–(BUSINESS WIRE)–Zoned Properties®, Inc. (the “Company”) (OTCQB: ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced its financial results for the fourth quarter and year ended December 31, 2021.

Full-Year 2021 Financial Results

• Revenues were $1.82 million for the year ended December 31, 2021, compared to $1.22 million for the year ended December 31, 2020, representing an increase of 49.8%.
• Operating expenses were $1.78 million for the year ended December 31, 2021, compared to $1.18 million for the year ended December 31, 2020.
• Cash provided by operating activities was $489,257 for the year ended December 31, 2021, compared to $170,040 for the year ended December 31, 2020, representing an increase of 188%. that was primarily attributable to cash generated from advisory and brokerage revenues.
• The Company had cash of $1,191,940 as of December 31, 2021, compared to $699,335 as of December 31, 2020, continuing positive cash-flow.

Fourth Quarter 2021 Financial Results

• Revenues were $537,211 for the quarter ended December 31, 2021, compared to $308,977 for the quarter ended December 31, 2020.
• Operating expenses were $535,345 for the quarter ended December 31, 2021, compared to $268,046 for the quarter ended December 31, 2020.
• For the quarter ended December 31, 2021, the Company reported net loss of $111,583, as compared to net income of $12,270 for the quarter ended December 31, 2020.
• The Company had cash of $1,191,940 as of December 31, 2021, compared to $1,090,682 as of September 30, 2021, continuing positive cash-flow.

Management Discussion and Company Highlights

• Zoned Properties Property Portfolio: Zoned Properties has achieved a stabilized, debt-free, property portfolio in Arizona that now produces $1.83 million annually in triple-net rental revenue, as of March 2022. We believe the Company is now positioned to explore healthy debt financing opportunities that could help fund the national expansion of the Company’s property portfolio.
  • Portfolio expansion in 2021 and subsequent to year-end included more than $8 million of capital investment by the Company’s significant tenant at the Chino Valley Cultivation Facility, significantly increasing operational size and rental revenue for Zoned Properties.
  • Subsequent to year-end 2021, effective March 1, 2022, Zoned Properties provided the Company’s significant tenant with an initial tenant improvement allowance of $500,000 to advance the Chino Valley project toward the next phase of expansion. In exchange, the base rent rate under the Chino Valley lease agreement increased from $0.82 per square foot monthly to $0.90 per square foot monthly.
  • Subsequent to year-end, effective March 1, 2022, Chino Valley’s operational square footage increased from 67,312 square feet to 97,312 square feet, and the new base rental payments at the facility increased 59% from $55,195 per month to $87,580 per month, reflecting both the increase in operational square footage and the increase to the base rent rate. The increase represents a year-over-year annualized base rental revenue increase from $393,600 in March 2020 to $1,050,970 in March 2021, reflecting a 167% increase.
  • The Chino Valley Cultivation Facility sits on over 47 acres of land, and also includes an approved master plan for additional future expansion. If currently permitted and construction-ready expansion were to be completed in its entirety, the additional square footage of operational and rentable building space would increase another 60,000 square feet, for a total of 157,312 square feet of operational and rentable space at the facility. This change would effect an increase in annualized base rental revenue to $1,698,970 for the Chino Valley Cultivation Facility plus additional rental payments under the triple-net lease.

• Zoned Properties Commercial Real Estate Services: The Company’s expanding leadership team is continuing to scale the Company’s commercial real estate services divisions: Advisory Services, Brokerage Services, Franchise Services, and Property Technology (“PropTech”) Services.
  • Zoned Properties Advisory Services: The Company has been expanding its advisory services team nationally, specializing in commercial real estate for emerging and regulated industries, including the regulated cannabis industry. The team has successfully identified hundreds of cannabis zoned properties nationally and has recently helped clients close cannabis real estate transactions in Arizona, New Mexico, Ohio, and New Jersey.
  • Zoned Properties Brokerage Services: Since inception of the Company’s in-house licensed brokerage in June 2021, the Zoned Properties team has closed over $50 million worth of real estate transactions for brokerage clients and has engaged with clients to list over 300,000 square feet of commercial real estate for cannabis dispensaries, cultivation, processing, and warehouse facilities. The brokerage team is currently engaged with national cannabis organizations, buyers, investors, and exclusive client listings with over $500,000 in future commission potential across dozens of commercial real estate projects.
  • Zoned Properties Franchise Services: Zoned Properties and national cannabis retail franchisor, Open Dør Dispensaries, have been vetting prospective investment partners and franchisees from across the country to target new franchise locations for existing and upcoming regulated cannabis markets. Zoned Properties will benefit both directly and indirectly from any growth achieved by Open Dør Dispensaries. As an investor, the Company will receive a percentage of initial franchise fees and renewal fees, and as the commercial real estate partner, the Company is positioned to provide commercial real estate services and investments for franchise real estate locations.
  • Zoned Properties PropTech Services: PropTech data solutions have the opportunity at national scale to bring service and data solutions to complex markets such as regulated cannabis. Zoned Properties has partnered with premier real estate zoning experts at Zoneomics to solve one of the biggest challenges in cannabis real estate: how to identify zoned properties that can be permitted and authorized for cannabis operations. The project team expects to officially launch the platform into the marketplace in 2022. Under the brand, “Rezone”, the PropTech data platform will focus on democratizing commercial real estate intelligence, providing hundreds of thousands of service professionals, business operators, and real estate investors with the data and information they need to successfully develop regulated real estate projects.

“The Zoned Properties mission and value proposition has never been stronger than it is today, empowering regulated industry stakeholders with commercial real estate solutions. We are helping cannabis operators and entrepreneurs enter the regulated marketplace with legitimacy. During 2021, we successfully recruited a sophisticated team of experts onto our team and formalized service partnerships across the nation,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “With stabilized, passive revenue from our portfolio and a clear pathway to expand into state-cannabis markets nationally, we believe that Zoned Properties is positioned for tremendous growth and scalability. These growth opportunities are the result of our team’s direct involvement in hundreds of regulated projects across the nation, leveraging our full-spectrum of commercial real estate services. We thank our shareholders, stakeholders, clients and partners for their trust in Zoned Properties and will continue working hard to bring them value.”

About Zoned Properties, Inc. (OTCQB: ZDPY):

Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.

Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development and investment model; Advisory Services, Brokerage Services, Franchise Services, and PropTech Data Services each cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.

Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.

Twitter: @ZonedProperties
LinkedIn: @ZonedProperties

Safe Harbor Statement

This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

COVID-19 Statement

In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. We are monitoring this closely, and although operations have not been materially affected by the COVID-19 outbreak to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is uncertain. Currently, all of the properties in our portfolio are open to our Significant Tenants and their customers and will remain open pursuant to state and local government requirements. We did not experience in 2021, and to date have not experienced in 2022, any material changes to our operations from COVID-19. We do not anticipate any such material changes for the remainder of 2022. Our tenants are continuing to generate revenue at these properties and they have continued to make rental payments in full and on time and we believe the tenants’ liquidity position is sufficient to cover its expected rental obligations. Accordingly, while we do not anticipate an impact on our operations, we cannot estimate the duration of the pandemic and potential impact on our business if the properties must close or if the tenants are otherwise unable or unwilling to make rental payments. In addition, a severe or prolonged economic downturn could result in a variety of risks to our business, including weakened demand for our properties and a decreased ability to raise additional capital when needed on acceptable terms, if at all. At this time, the Company is unable to estimate the impact of this event on its operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220324005166/en/

Contacts

Media Relations
Proven Media
Neko Catanzaro
Tel (401) 484-4980
[email protected]

Investor Relations
Zoned Properties, Inc.
Bryan McLaren
Tel (877) 360-8839
[email protected]
www.zonedproperties.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

SCOTTSDALE, Ariz., November 10, 2021–(BUSINESS WIRE)–Zoned Properties®, Inc. (the “Company” or “Zoned Properties”) (OTCQB: ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced its financial results for the three and nine months ended September 30, 2021.

Third Quarter 2021 & Nine Months Ended September 30, 2021 Financial Results

• Revenue increased 28% to $387,365 for the third quarter of 2021, compared to $302,772 for the third quarter of 2020. This increase in revenues was primarily attributable to an increase in rent revenues from the Significant Tenants of $29,780 and an increase in brokerage revenues of $69,500, offset by a decrease in advisory revenues of $14,687.
• Operating expenses increased 77.0% to $440,816 for the third quarter of 2021, compared to $249,021 for the third quarter of 2020, an increase primarily due to the payment of brokerage commission splits of $42,500 on brokerage revenues and increases in compensation and benefits and consulting fees.
• For the nine months ended September 30, 2021, revenue increased 41.6%, while operating expenses only increased 36.7% as compared to the nine months ended September 30, 2020.
• Loss from operations amounted to $(53,451) for the third quarter of 2021, compared to income from operations of $53,751 for the third quarter of 2020, a decrease of $107,202.
• Income from operations amounted to $42,834 for the nine months ended September 30, 2021, compared to a loss from operations of $(3,198) for the nine months ended September 30, 2020, a positive change of $46,032.
• Net loss was $(95,495), or $(0.01) per basic share and diluted share, for the third quarter of 2021, compared to net income of $25,089, or $0.00 per basic and diluted share, for the third quarter of 2020.
• For the nine months ended September 30, 2021, net cash provided by operating activities was $387,999, compared to $48,470 for the nine months ended September 30, 2020.
• As of September 30, 2021, Zoned Properties had cash of $1,090,682, compared to $699,335 as of December 31, 2020.

Third Quarter 2021 & Nine Months Ended September 30, 2021 Company Highlights

• Zoned Properties Leadership Team: The Company has been successfully expanding its team of national real estate professionals for regulated industries. In the third quarter of 2021, Zoned Properties appointed Berekk Blackwell as Chief Operating Officer, Patrick Moroney as Director of Real Estate, and Joseph Lewis as Designated Broker. Zoned Properties has been recruiting a team of Senior Advisors and Project Managers with national cannabis and real estate expertise, as well.

• Zoned Properties Services Verticals: The Company’s expanding leadership team is continuing to scale the Company’s commercial real estate service verticals: Advisory Services, Brokerage Services, Franchise Services, and Property Technology (“PropTech”) Services.
  • Zoned Properties Advisory Services: The Company has been expanding its team of Senior Advisors specializing in emerging and regulated industries, primarily focused on the national cannabis industry. The Company has been shifting its client engagement model away from smaller, one-time engagements, and moving to engagements as the client’s outsourced real estate brain trust synced for longer-term client relationships. The team anticipates a successful transition to this updated advisory structure, which should be positively reflected in upcoming quarters.
  • Zoned Properties Brokerage Services: Our Brokerage Team is currently engaged with national cannabis organizations, national buyers, investors, and exclusive client listings with over $500,000 in commission potential across dozens of commercial real estate projects. Our Brokerage Team anticipates revenue from these potential commissions to be realized in the coming quarters.
  • Zoned Properties Franchise Services: Zoned Properties and national cannabis retail franchisor, Open Dør Dispensaries, are in the process of vetting operational partners from across the country to target a number of existing and new state markets. As the commercial real estate partner, Zoned Properties will benefit both directly and indirectly from the relationship. As an investor, the Company will receive a percentage of initial franchise fees and renewal fees, and as a partner the Company is positioned to provide commercial real estate investments for prospective franchise locations. Zoned Properties also has the opportunity to convert its existing debt investment for up to a 33% equity stake in the franchisor organization.
  • Zoned Properties PropTech Services: Property Technology platform solutions have the opportunity for national scale and service to regulated markets such as cannabis. Over the past year, Zoned Properties and Zoneomics have teamed up to solve one of the biggest challenges in cannabis real estate: how to identify appropriately zoned properties that can be permitted for cannabis operations. In the coming weeks, the project team will be formally introducing our platform to the marketplace. Under the brand, “Rezone”, the PropTech platform has the opportunity to democratize commercial real estate intelligence, providing hundreds of thousands of service professionals and business operators with the information they need to successfully develop regulated real estate projects.

• Zoned Properties Property Portfolio: Over $8,000,000 of capital has been invested to-date by the Company’s Significant Tenant at the Chino Valley Cultivation Facility.
  • The Company’s Significant Tenant will maintain the master rights to the property and facilities through the remainder of the Lease Agreement. Effective September 1, 2021, operational square footage increased from 40,000 square feet to 67,512 square feet, and the new base rental payments at the facility increased 68% from $32,800 per month to $55,195 per month including three out of four new building structures in the phase one expansion that became fully completed and operational.
  • The fourth additional building site is in completion stages for technology and operational packages along with compliance inspections. The parties expect that, upon final completion, they will enter into another lease amendment reflecting the increased operational square footage and increased base rental payments. Operational square footage would increase from 67,512 square feet to 97,512 square feet, and base rental payments at the facility would increase an additional 69% from $55,195 per month to $79,795 per month reflecting the entirety of the phase one expansion.
  • Upon completion of the entirety of the phase one expansion, the annualized base rental payments will increase to $957,550 reflecting an increase of 143% from previous annualized base rental payments of $393,600.
  • The Chino Valley property also includes an approved master plan for a phase two expansion of operational and rentable square footage that is construction ready and may proceed at the Tenant’s election. If the Tenant elects to proceed with phase two, the additional square footage of operational and rentable building space could include another 60,000 square feet for a total of 157,512 square feet of operational and rentable building space at the facility, which would equate to an annualized rental rate of $1,549,918 plus additional rental payments under the triple-net lease.

“Our value proposition and business thesis at Zoned Properties, which is centrally focused on real estate development in the regulated cannabis space, has never been stronger. We continue to strengthen our team of subject-matter experts who know how to navigate the complexity of cannabis real estate and deliver tangible value for our company and our clients across the county,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “We have successfully positioned the Company with a debt-free, cash-flowing portfolio of expanding properties that can support innovative and scalable growth for the future of the Company. One of the final puzzle pieces that will shape the future of Zoned Properties will be confirming long-term capital partners who understand our mission, vision, and capital opportunities we’ve spent years creating to build value for investors, shareholders, and stakeholders.”

About Zoned Properties, Inc. (OTCQB: ZDPY):

Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.

Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development and investment model; Advisory Services, Brokerage Services, Franchise Services, and PropTech Data Services each cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.

Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 14269 N. 87th Street, Suite 205, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.

Twitter: @ZonedProperties
LinkedIn: @ZonedProperties

Safe Harbor Statement

This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

COVID-19 Statement

In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. We are monitoring this closely, and although operations have not been materially affected by the COVID-19 outbreak to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is uncertain. Currently, all of the properties in our portfolio are open to our Significant Tenants pursuant to state and local government requirements. We did not experience in 2020, and to date have not experienced in 2021, any material changes to our operations from COVID-19. We do not anticipate any such material changes for the remainder of 2021. Our tenants are continuing to generate revenue at these properties and they have continued to make rental payments in full and on time and we believe the tenants’ liquidity position is sufficient to cover its expected rental obligations. Accordingly, while we do not anticipate an impact on our operations, we cannot estimate the duration of the pandemic and potential impact on our business if the properties must close or if the tenants are otherwise unable or unwilling to make rental payments. In addition, a severe or prolonged economic downturn could result in a variety of risks to our business, including weakened demand for our properties and a decreased ability to raise additional capital when needed on acceptable terms, if at all. At this time, the Company is unable to estimate the impact of this event on its operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110005852/en/

Contacts

Media Relations
Proven Media
Neko Catanzaro
Tel (401) 484-4980
[email protected]

Investor Relations
Zoned Properties, Inc.
Bryan McLaren
Tel (877) 360-8839
[email protected]
www.zonedproperties.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Board Committee Appointments
Adoption of Governance Documents
Change of Domicile
Conversion of the Company’s Outstanding Series A Preferred Stock

DALLAS, September 10, 2021–(BUSINESS WIRE)–Generation Hemp, Inc. (the “Company”), a Dallas/Fort Worth based midstream hemp company (OTCQB: GENH), today announced recent corporate developments, including the results of the Company’s recent Board of Directors meeting held on August 30, 2021 and the completion of its change of domicile from Colorado to Delaware, as well as the conversion of all of the Company’s outstanding Series A Convertible Preferred Stock into Common Stock.

Meeting of the Company’s Board of Directors

As disclosed in the Company’s Information Statement on Schedule 14C filed with the United States Securities and Exchange Commission on July 26, 2021 (the “Information Statement”), Gary D. Elliston, John Harris and Joe McClaugherty were each elected as independent directors, in accordance with applicable rules and regulations (the “Independent Directors”). This is in addition to current director, Gary C. Evans, the Company’s Chief Executive Officer and Chairman, and brings the total number of Board members of the Company to four.

Each of the Independent Directors was appointed to either the Company’s Audit Committee, Nominating and Corporate Governance Committee, and Compensation Committee or a combination thereof, by the Company’s Board of Directors. Following such appointments, the Board and the applicable Committees appointed the following Committee Chairman: John Harris (Audit Committee); Garry D. Elliston (Nominating and Corporate Governance Committee) and Joe McClaugherty (Compensation Committee), with Mr. Harris being certified as the Audit Committee Financial Expert in accordance with applicable rules and regulations. In addition, the Board adopted a Lead Independent Director Charter and appointed Mr. McClaugherty as the Company’s Lead Independent Director. Following the Committee appointments, each Committee adopted its applicable governing charter, and the Nominating and Corporate Governance Committee adopted the Company’s Corporate Governance Guidelines, all of which can be found on the Company’s website at genhempinc.com.

Change in Domicile from Colorado to Delaware

As disclosed in the Information Statement, pursuant to a Plan of Conversion, the Company’s change of domicile from the State of Colorado to the State of Delaware became effective as of August 20, 2021, and the Company now exists as a corporation under the laws of State of Delaware. The change of domicile had no effect on the number of outstanding securities of the Company or the terms thereof.

Conversion of Series A Convertible Preferred Stock

On September 8, 2021, all of the holders of the Company’s outstanding Series A Convertible Preferred Stock elected to convert such shares into shares of the Company’s Common Stock. As a result, 6,328,948 shares of Series A Convertible Preferred Stock were converted into 75,947,376 shares of Common Stock, with each share of Series A Convertible Preferred Stock converting into 12 shares of restricted Common Stock pursuant to the applicable Certificate of Designations. The shares of Series A Convertible Preferred Stock were originally issued in connection with the Company’s merger transaction completed in December 2019. As of the date of this Release, the Company has 110,451,684 shares of Common Stock outstanding.

About Generation Hemp, Inc.

Generation Hemp, Inc. is a Dallas/Fort Worth based hemp company that operates in the midstream sector. With operations in Hopkinsville, Kentucky and Denver, Colorado, the company uses its proprietary technology to dry, clean, process and store hemp. In addition, Generation Hemp also owns and leases real estate to companies needing seed storage facilities located within the greater Denver area.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates,” “projects”, “forecasts”, “proposes”, “should”, “likely” or similar expressions, indicates a forward-looking statement. These statements and all the projections in this press release are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. The identification in this press release of factors that may affect the company’s future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210910005030/en/

Contacts

Melissa M. Pagen
Generation Hemp, Inc.
Phone: (310) 628-2062
Email: [email protected]

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

NEW CANAAN, Conn., Aug. 16, 2021 (GLOBE NEWSWIRE) — NewLake Capital Partners, Inc. (the “Company”), a leading provider of real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third party purchases and funding for build-to-suit projects, today announced that it has closed its initial public offering of 3,905,950 shares of common stock at an initial public offering price of $26.00 per share. Settlement of the offering occurred on August 13, 2021. The Company expects its shares to become quoted on the OTCQX® Best Market operated by OTC Markets Group, Inc. shortly following the closing of the offering.

The Company contributed the net proceeds from this offering to its operating partnership. The operating partnership intends to use the net proceeds to acquire the Company’s target assets in a manner consistent with the Company’s investment strategy.

Ladenburg Thalmann & Co. Inc., Compass Point Research & Trading, LLC and Loop Capital Markets LLC served as placement agents for the offering.

A registration statement on Form S-11, including a prospectus, has been declared effective by the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering was made only by means of a prospectus. A copy of the final prospectus relating to the offering may be obtained from Ladenburg Thalmann & Co. Inc. at [email protected] or (212) 409-2000.

About NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases and funding for build-to-suit projects. As of June 30, 2021, NewLake owned a portfolio of 27 cultivation facilities and dispensaries utilized in the cannabis industry that were leased to single tenants on a long-term triple-net basis.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements, including statements regarding the use of proceeds of the initial public offering, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward- looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.

Investor Contact:

Valter Pinto, Managing Director
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Developers of cannabis projects in California want to turn projects around as quickly and cheaply as possible, and are frequently frustrated by the amount of time, money, and effort required for the entitlement process. On Wednesday, February 26, a panel of real estate development experts will explain the entitlement process in California at a LACBA panel moderated by our own Julie Hamill.

Julie will be joined by:

• Amy Freilich, Partner at Armbruster Goldsmith & Delvac;
• Larry Kosmont, CEO of Kosmont Companies; and
• Corinne Verdery, Chief Development Officer at Caruso.

The panelists will describe the steps that a developer goes through to entitle a project, and how political strategies, community outreach, CEQA, and new development laws play into the process. Theses panelists are working on some of the biggest development projects in Southern California and will share their war stories, successes, and challenges with the audience in a guided discussion followed by audience Q&A.

This panel is for real estate practitioners, land use lawyers, developers, and students eager to learn more about how the mysterious world of land use really works. The panel is not tailored specifically toward the cannabis industry, but will be worthwhile for anyone interested in development in this or any other industry in California. Registration information is available here.

Succeeding in the cannabis industry is not easy, especially in California. Complex regulation, high taxes, expensive real estate, and competition with the black market are just a handful of factors that challenge cannabis businesses. The majority of players lack sufficient reserves and agility to stay in the game. Due to the substantial upfront costs required to obtain state and local licenses, many don’t even open their doors before cash flow problems lead to unpaid rent and defaulted loans.  We are seeing an increasing number of distressed businesses in the cannabis space.

So, what happens when a cannabis business goes belly-up? A typical business can file for bankruptcy protection, and a court-appointed trustee may liquidate or reorganize the business to satisfy creditors and discharge the debt. Due to the federal prohibition against cannabis, however, cannabis businesses are not eligible for bankruptcy protection, and cannot discharge their debts the same way that other businesses can. Bankruptcy cases are handled exclusively in federal court, and the rationale is that it wouldn’t be possible for a United States Trustee to control and administer a debtor’s assets (cannabis) without violating the federal Controlled Substances Act. (See here for more on that).

One option, if all parties are in agreement, is to voluntarily work out a deal between creditors and the debtor outside of court. While this avenue carries risk due to the absence of any formal court order, and creditors will have to trust that the debtor will follow through with their promises, it could be the most cost-efficient means of resolving a creditor dispute if the arrangement works out.

Another option, which is growing in popularity, is the use of a court-appointed receiver.

 In California, a receiver is an officer appointed by the court to take possession of and to protect assets for the benefit of all persons who may have an interest in those assets. The receiver is a neutral agent of the court and holds assets for the court, not for the plaintiff or the defendant. A receivership is only a provisional remedy in an action that seeks some other relief by final judgment. In other words, you cannot file a lawsuit for the sole purpose of having a receiver appointed.

The court will outline the powers of the receiver in an order, which typically include temporarily managing the business until it gets back into better financial standing, selling off assets, employing employees and professionals, and entering into contracts or leases, among other powers.

In the context of a cannabis business, a likely scenario would involve the business defaulting on a loan, the creditor suing to recover the money, and then the creditor seeking to have the court appoint a receiver to take over the business during the pendency of the action. As we have written about previously, receivership can be a helpful tool where there is a dispute between business owners, but it is not without risk.

Receivership can be expensive, and the costs are generally paid from the income stream generated by the receivership estate (AKA the cannabis business). However, when the receivership estate produces no income or produces income insufficient to compensate a receiver (or when equity requires), the appointing court has broad discretion in determining which party to the litigation should pay the expenses of a receivership. Ordinarily, a court will require the party that requested the receiver’s appointment to bear these costs. That means if you are a creditor who sues a cannabis business and asks to appoint a receiver, and the business does not generate enough income to pay the receiver’s fees, you could be on the hook to pay!

The use of receivership in the cannabis industry can yield strong results (the assets of a cannabis business in receivership were recently sold at auction for $8.5 million), but it is a tricky and novel thing to navigate.

While there are California statutes specifically addressing the use of receiverships to transfer the interest of a debtor in an alcoholic beverage license, no such laws exist (yet) relating to receiverships for cannabis businesses. Combine that with the prohibition against transferring state licenses, the different regulations for ownership changes from the BCC, CDPH and the CDFA, the restrictions applicable to a person who engages in management and control of a cannabis business, and local jurisdiction requirements, and cannabis receivership becomes a very complicated endeavor. While the non-license business assets are less of an issue (e.g., the sale of real property and equipment is more straightforward), the management and sale of a business and license are a different story. We expect to see some legislation and/or regulation addressing receiverships for cannabis entities at some point in the future.

The cannabis industry’s regulatory framework is extremely complicated to navigate. However, well-capitalized and savvy investors may be able to take advantage of distressed assets in receivership if they are prepared to deal with the uncertainty and risk.

Recently, Governor Newsom signed 18 bills aimed to combat the housing crisis in California, including the Tenant Protection Act of 2019. The California Association of Realtors argues this new statewide rent control law will “impose onerous standards upon small property owners and, in turn, exacerbate the state’s housing crisis.”

When I spoke at the California Association of Realtor’s Legal Affairs conference a couple of weeks ago, I was asked whether cannabis activity could be considered grounds for “just cause” eviction under the new Tenant Protection Act.  While there is nothing specific to cannabis in the Tenant Protection Act, and there is not yet any case law interpreting the new statute, landlords fearful of having their properties overrun by pot-smoking hippies can put their minds at ease. Hippies are one thing, but cultivation and processing operations on private residential property are quite another. Read on for more.

The Tenant Protection Act of 2019 Implements Statewide Rent Control and Requires Just Cause to Terminate a Tenancy

Rent Control

Subject to a number of exceptions, new Civil Code section 1947.12 prohibits an owner of residential real property from increasing the rental rate by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, over the course of a 12-month period.

Just Cause Termination

To avoid a surge in lease terminations due to the new cap on rent increases, subject to some exceptions, the State now requires “just cause” to terminate a residential lease after a tenant has continuously occupied a residential property for 12 months. (Civil Code 1946.2).

“Just cause” may be either “at-fault” or “no-fault.” At-fault just cause includes:

1. Default in payment of rent.
2. A breach of a material term of the lease, including a violation of a provision of the lease after being issued a written notice to correct the violation.
3. Maintaining, committing, or permitting the maintenance or commission of a nuisance.
4. Committing waste.
5. The tenant had a written lease that terminated on or after January 1, 2020, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
6. Criminal activity by the tenant on the residential real property, or any criminal activity or criminal threat on or off the property that is directed at any owner or agent of the owner of the residential real property.
7. Assigning or subletting the premises in violation of the tenant’s lease.
8. The tenant’s refusal to allow the owner to enter the residential real property.
9. Using the premises for an unlawful purpose.
10. The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee.
11. When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice.

No-fault just cause includes:

1. Intent to occupy the property by the owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents. For leases entered into on or after July 1, 2020, this applies only if the tenant agrees in writing to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property.
2. Withdrawal of the residential real property from the rental market.
3. The owner complying with any of the following:
   • An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
   • An order issued by a government agency or court to vacate the residential real property.
   • A local ordinance that necessitates vacating the residential real property.
4. Intent to demolish or to substantially remodel the residential real property.

Landlords wishing to exercise a “no-fault” termination must either waive payment of the last month’s rent or pay for tenant relocation.

There is a long list of exceptions to above requirements. Further, if a local ordinance requiring “just cause” termination exists in the jurisdiction where the property is located, then the local ordinance controls.

Owners of single family residences that are “alienable separate from the title to any other dwelling unit” (AKA a single home on a lot) are exempt from the new requirements so long as (1) the owner is not a REIT, a corporation, or an LLC in which at least one member is a corporation, AND (2) the tenants have been given written notice that the property is exempt from the just cause and rental cap requirements.

Cannabis and Just Cause

Non-exempt landlords want to know if cannabis activity constitutes “just cause” for termination under the Tenant Protection Act.

Health & Saf. Code, § 11362.1(a) provides that

“it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to:
(1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of cannabis not in the form of concentrated cannabis;
(2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of cannabis in the form of concentrated cannabis, including as contained in cannabis products;
(3) Possess, plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants;
(4) Smoke or ingest cannabis or cannabis products; and
(5) Possess, transport, purchase, obtain, use, manufacture, or give away cannabis accessories to persons 21 years of age or older without any compensation whatsoever.”

However,

“Section 11362.1 does not amend, repeal, affect, restrict, or preempt the ability of an individual or private entity to prohibit or restrict any of the actions or conduct otherwise permitted under Section 11362.1 on the individual’s or entity’s privately owned property.” Health & Saf. Code, § 11362.45(h).

Accordingly, while the cannabis activities described in Health & Safety Code section 11362.1 are not considered “criminal activity” under California law, property owners are well within their rights to prohibit tenants from engaging in any cannabis activity (including smoking, cultivating, and processing) on privately owned property.  Therefore, landlords concerned about cannabis activity should prohibit such activity in their leases, and provide written notice to correct any violation. Landlords should then look to Civil Code section 1946.2(b)(1)(B) (breach of material term) and/or 1946.2(b)(1)(C) (nuisance – if the appropriate elements are present) to justify termination for cannabis-related activity.

It’s common to see articles these days related to the positive economic impacts of hemp legalization. Most of these articles focus on job creation, opportunities for farmers, or opportunities for businesses chasing the CBD craze. One thing that has been interesting to me, though–and which seems to have attracted less attention–is the way that hemp has revitalized certain non-farm properties that had been underutilized or abandoned. This echoes early trends caused by marijuana legalization in Oregon, Colorado and elsewhere, when industrial properties were rehabilitated, purchased and leased en masse for cannabis uses.

Revitalization of industrial properties is now happening with hemp processing. Very recently, for example, I helped a group of professional real estate investors purchase a large and underutilized sawmill property in southern Oregon. The purchase price was well into the seven figures and the transaction was highly dynamic in that it involved seller financing, complex environmental considerations, multiple third-party guarantors and indemnitors, a limited leaseback, etc. Like all the fun ones, it almost fell through a couple of times. But the deal came through in the end.

So, why was this particular deal interesting? For many decades, logging was a primary economic engine in Oregon. It is now undisputed, though, that the cannabis industry (both marijuana and hemp) has replaced the timber industry as the natural resources engine in the southern part of the state. Beginning this harvest season, tenants at the property my clients purchased will be drying over 35,000 kilos of hemp per month in enormous kilns, rather than however many board feet of lumber. If that sounds like a lot of hemp for one site, it is– but it’s not so much in the context of Oregon hemp production acreage overall.

Because the 2018 Farm Bill was only recently enacted, data related to economic impacts of large-scale hemp production are inchoate. Once the USDA releases its rules and begins to certify state programs, we may begin to see a fuller picture. Even then, however, we are likely to get data limited to discrete categories of activity–hemp production acreage, commodity sales prices, jobs created, etc.–and it will be difficult for economists to quantify the gross economic footprint of hemp legalization. This includes through purchases like the sawmill property our Portland office recently papered.

To be clear, this particular purchase and sale agreement is just one of many “ripple” type transactions we have run related to hemp either inside or outside of Oregon. Recent activity runs the gamut from co-packing agreements for hemp-CBD products, to advising financial institutions on serving hemp operators. Like other widely scaled commodities, hemp is infiltrating the whole economy. And based on metrics like raw production, all of this is happening incredibly quickly.

When the dust settles, we fully expect USDA and other federal and state agencies to regulate hemp in a manner more akin to tobacco than tomatoes. We do not expect this regulation to have a materially negative impact on the commercial viability of hemp, however, and we don’t foresee a dip in hemp-related activity anytime soon (and that includes hemp litigation). All of this means that there will be many more fascinating transactions as commercial and industrial properties are revitalized and reinvented. We can’t wait to be a part of it.