Investors who are a little wary of the cannabis sector don’t have to dive into the deep end. They can dip a toe into the other end of the sector with a new cannabis-related real estate investment trust, or REIT.
A deal, expected to close by the end of this month will see Subversive Real Estate Acquisition REIT merge with Inception REIT, creating the second publicly traded cannabis REIT. The first cannabis REIT, Innovative Industrial Properties (NYSE:), based in San Diego, California, was founded in 2016.
The latest REIT is being welcomed by the sector, especially by operators that are finding it difficult to obtain capital. The new REIT will allow operators that cannot secure bank loans the opportunity to sell real estate holdings and lease them back, a process that can inject liquidity into their operations. It is one option to help cash-strapped growers to ramp up their production.
According to BNN Bloomberg, Canadian-based cannabis grower Flower One Holdings (OTC:), (CSE:)…
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