BOOM! $COBI - Cannabis Company BANGI Signs LOI To Acquire 38,000 Square Foot Property in Michigan; Enters into Sale-Leaseback Agreement With Previous Owner
8:10 AM ET 4/15/19 | Dow Jones
Agreement Represents Launch of BANGI's Strategic Acquisition Strategy
LOS ANGELES, CA / ACCESSWIRE / April 15, 2019 / BANGI, Inc. (OTC PINK: COBI), a diversified investment vehicle that acquires and leases specialized real estate assets, such as cannabis farms, today announced that it has signed a letter of agreement (LOI) to acquire a 38,000 square foot property permitted to grow medical-use cannabis in Michigan. Photos of the Michigan property can be found by visiting: Michigan Indoor Cannabis Facility.
The purchase price for the property will be $3 million including transaction and renovation expenses. BANGI will lease the property to the original owner upon completion of the acquisition, with the intent to utilize the property for the cultivation of medical-use cannabis as a licensed Michigan medical caregiver. Additionally, the Company and the former property owner will form a strategic partnership designed to acquire additional cannabis real estate assets in Michigan under the terms of the agreement.
The Michigan property currently generates $700,000 in triple-net lease income with the potential to increase its income by an additional $50,000 per month, upon completion of the state's licensing requirements. This transaction will mark the first cannabis real estate acquisition and sale-leaseback transaction for BANGI, demonstrating the Company's continued traction and expansion in the booming cannabis industry.
Michigan became the thirteenth state to legalize medical-use cannabis in 2008. According to data reports, the state estimated it had more than 260,000 medical cannabis patients in 2018, the fifteenth largest number of medical cannabis patients, and one of the largest numbers of medical cannabis patients per 1,000 state residents, in America.
"Our acquisition and sale-leaseback agreement in Michigan are just one of many to come for BANGI as we continue to build our vision as a leading investor and financier in specialized cannabis real estate assets," said Rick Shykora, Interim Chief Executive Officer of BANGI, Inc. "The yield-to-equity far exceeds the commercial transaction for the Michigan property and is a key strategic move for our company. We are thrilled to share the news of our letter of intent to our shareholders," concluded Mr. Shykora.
For additional information about BANGI, please visit www.bangistock.com.
About BANGI, Inc. [OTC: COBI]
BANGI (pronounced bon-ghee), which means "marijuana" or "hemp" in the African dialect Swahili is a diversified investment vehicle that acquires and leases specialized real estate assets, such as cannabis farms. Corporation combines hard asset security and long-term appreciation potential. For more information, visit www.bangistock.com.
