Vertically integrated California cannabis operator Lowell Farms sold its Monterey County processing plant for $19.4 million to New Wilston Associates and entered a leaseback agreement with the company.
Under terms of the deal, Lowell signed a 10-year lease on the 10-acre site, which includes a 40,000-square-foot facility where it cultivates and processes marijuana for its own brands and third-party partners, according to a news release.
Lowell acquired the operation in 2021 for $19.2 million.
As part of the deal, Connecticut-headquartered New Wilston will assume the outstanding principal on the mortgage, accrued unpaid interest and other liabilities totaling $10.3 million.
Lowell said in the release that it expects to gain about $3.5 million after closing and other transaction-related costs.
“The sale leaseback is just one part of our ongoing restructuring efforts to implement cost cutting measures and drive efficiencies in order to best position the company
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