Ascent Industries Corp (CSE:ASNT) announced Wednesday that it was accelerating its business expansion plans with a strategic alliance with Green Sage LLC, a Colorado- and California-based real estate investment firm that has specialized knowledge and resources in cannabis real estate development.
Green Sage is focused on acquiring, developing and managing real estate infrastructure in cannabis-legal jurisdictions throughout North America and Europe.
Under the agreement, Ascent will offer Green Sage the first right to acquire and capitalize real estate properties that Ascent owns, or proposes to acquire or lease for its businesses. Green Sage will provide Ascent with the first right to lease space available at any of the commercial properties owned or to be acquired by Green Sage.
"The relationship with Green Sage accelerates our ability to finance our capital projects throughout North America at select premier locations. The combination of alternative financing, real estate expertise and cannabis-specific knowledge that Green Sage provides supports our business strategy in expanding our global footprint through a multi-location rollout," said chief financial officer of Ascent, Blair Jordan.
"Going forward, we will be working with Green Sage on capital projects currently under development and projects in our pipeline."
Ascent noted that the deal with Green Sage will help accelerate the company's growth, as well as reduce its cost of capital.
Ascent and Green Sage will announce the locations of new facilities as they are identified throughout 2018 and 2019 in legal jurisdictions across Canada, the US and Europe.
"As strategic real estate specialists for the legal cannabis industry, we are pleased to work with a company with the calibre of management and global footprint of Ascent," said Ken Greer, managing director of Green Sage.
"The company is a premium client given their existing cannabis cultivation, production and product development expertise."