UC Asset Signed MOU with Tenant to Build 8000 sq ft Cannabis Property
ATLANTA, Sept. 28, 2023 /PRNewswire/ -- UC Asset LP (OTCQB: UCASU) announces today that the company has entered into a Memorandum of Understanding (MOU) to build an 8,000 sq ft cannabis property for medical cannabis cultivation, in the metropolitan area of the State of Oklahoma. The MOU is a three party non-binding agreement between UC Asset, a contractor, and a tenant.
According to the MOU, the tenant agrees to rent the property from UC Asset for a monthly payment of $20,000, upon completion of its construction. There will be a 3-month grace period when monthly payment will be set at 50% discount.
The tenant, Nuggetry/MOAB LLC, is a licensed medical cannabis grower based in the State of Oklahoma, is not affiliated to UC Asset, and has no other business relationship with UC Asset.
If built, this property will become the second cannabis property owned by UC Asset. In May 2023, UC Asset acquired 50% ownership of a15,000 sq ft cannabis property for a consideration of $1.6 million. Starting from this month, UC Asset receives $12,000 monthly dividend from the rental of that first property.
According to the MOU, the second property will have more than 4 growing rooms, with a growing canopy area of more than 5500 sq ft. It will be fully equipped with computerized light, irrigation, temperature, and humidity control, to provide 100% controlled environment. Upon completion, the Property will be able to support a monthly harvest of top-shelf medical marijuana of about 150 to 200 pounds.
"Most other cannabis property investors, perhaps an overwhelming majority of them, chose to buy existing properties," says Jason Armstrong, manager of UC Asset. "We also acquired our first cannabis property through a purchase deal. However, we believe that it will save us approximately 1/3 to 1/2 costs, if we choose to build our property, instead of purchasing. This strategy will distinguish us from almost all other cannabis property investors, and it will likely give us a substantial and sustainable competitive advantage."
The property will be located in Edmond, Oklahoma, which is a suburban town only 20 minutes from downtown Oklahoma City, the capital and largest city of the State of Oklahoma.
According to the management of UC Asset, UC Asset is one of the only four public companies based in United States and listed on a US stock exchange or trading platform, which invest in cannabis properties. The other three public companies are Innovative Industry Property (NYSE: IIPR), Power REIT (NYSE/American: PW) and NewLake Capital Partners (OTCQX: NLCP).
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.
For More Information Contact: IR@UCasset.com; +1 470-475-1035
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SOURCE UC Asset LP
