Alliance Holdings Enters the Cannabis Industry with the Acquisition of Land and an Equity Investment in a Multi-State Cannabis Operator
June 11, 2018 / Alliance Holdings, Inc., a 100% employee-owned holding company, has made two recent investments in the cannabis industry with the acquisition of land and a minority equity investment. "We are excited to step into the emerging cannabis industry with these two investments," said Kenneth Wanko, President and CEO of Alliance Holdings. "There are many positive catalysts that we believe will continue to push the industry forward and we are confident in its future growth."
In May, Alliance acquired 100 acres of land from one of the largest vertically-integrated cannabis operators in the U.S. and entered into a long-term lease with the seller. The property is being used by the tenant for greenhouse and outdoor cannabis cultivation and, once fully utilized, is expected to be one of the largest operations in its state. "This investment is expected to generate strong returns with stable, predictable cash flows," said Mr. Wanko. "We were very impressed by the company's sophisticated operations and are excited to be in business with one of the largest, most reputable cannabis operators."
Alliance recently closed on a minority investment in a multi-state, vertically-integrated cannabis company. The company intends to use the funds for general corporate purposes and to support growth through acquisition of licenses, strategic investments, and partnerships. The company has identified core geographies to focus its expansion efforts and has forged strategic partnerships. "Through our discussions with the operator, we have gained a great deal of comfort in the company's vision and growth plans," said Mr. Wanko. "We believe the strong industry experience of the management team and board of directors positions the company very favorably in the rapidly growing cannabis industry. This investment, in conjunction with our most recent purchase of land leased back to a cannabis operator, continues Alliance’s mission of building a diversified portfolio for our employee owners."
In May, Alliance acquired 100 acres of land from one of the largest vertically-integrated cannabis operators in the U.S. and entered into a long-term lease with the seller. The property is being used by the tenant for greenhouse and outdoor cannabis cultivation and, once fully utilized, is expected to be one of the largest operations in its state. "This investment is expected to generate strong returns with stable, predictable cash flows," said Mr. Wanko. "We were very impressed by the company's sophisticated operations and are excited to be in business with one of the largest, most reputable cannabis operators."
Alliance recently closed on a minority investment in a multi-state, vertically-integrated cannabis company. The company intends to use the funds for general corporate purposes and to support growth through acquisition of licenses, strategic investments, and partnerships. The company has identified core geographies to focus its expansion efforts and has forged strategic partnerships. "Through our discussions with the operator, we have gained a great deal of comfort in the company's vision and growth plans," said Mr. Wanko. "We believe the strong industry experience of the management team and board of directors positions the company very favorably in the rapidly growing cannabis industry. This investment, in conjunction with our most recent purchase of land leased back to a cannabis operator, continues Alliance’s mission of building a diversified portfolio for our employee owners."