ATLANTA — UC Asset LP (OTCQX: UCASU) announces the company is launching a program to form investor-grower partnerships with seasoned cannabis growers, who are licensed in their own states to grow hemp, medical cannabis or recreational cannabis plants, to work on UC Asset’s cannabis portfolio properties that are expected to expand to $50 million.
“Since we started our cannabis investment strategy in the fourth quarter of last year, we have signed three LOIs to invest in several cannabis properties in different states, for a total investment of $2.2 million,” says Greg Bankston, managing general partner of UC Asset. “And we have identified more potential opportunities allowing us to build a portfolio of $5 to 10 million quickly, and up to $50 million or even more over a reasonably period, provided that we have adequate capital formation.”
With the potential of fast expansion of its cannabis property portfolio, UC Asset is in demand of reliable partnerships with seasoned growers in different locations.
“Cannabis is an emerging industry and growers are usually transferred from other farming businesses, without a long history of cannabis cultivation,” explains Bankston, “Many growers have invested intensively into cannabis properties, only to get caught in the left side of their learning curves and are suffering from capital drain, or, in some cases, swamped with debts. Therefore, there are great potentials for investors like us to partner with these growers. We will acquire their properties, put cash back into their hands, and now they can focus on their growing business with sufficient working capital.”
“Furthermore, if a seasoned grower desire to expand their growing business, we can identify and acquire cannabis properties and lease those properties to him. Such a partnership will dramatically reduce the amount of needed capital for the grower,” continues Bankston.
This business model is very similar to other established public companies, such as Power REIT (NYSE: PW). In February 2020, Power REIT announced expanding its portfolio in greenhouses for both food and cannabis cultivation. Since this announcement, its stock price has soared to as much as 860% in 24 months.
To support this growth, the company has announced that it will file Form S-1 for a secondary public offering, and plans to uplist to NYSE American or NASDAQ small cap. It has started to engage investment bankers for a firm commitment underwriting. However, the company has not reached agreement with any underwriters at this moment.
About UC Asset LP
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA. For more information about UC Asset, please visit: www.ucasset.com.