ATLANTA, May 14, 2021 /PRNewswire/ -- Parallel (the "Company"), one of the largest privately-held multi-state cannabis operators in the United States (U.S.), today announced the completion of a sale-leaseback transaction (the "Transaction"), in which Parallel sold its Pittsburgh, Pennsylvania warehouse to, and entered into a long-term lease agreement with, an affiliate of Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry. The deal is valued at approximately $68 million.
Proceeds from the transaction will be used to complete the initial build-out of a warehouse in Pittsburgh that will be used as goodblend™ Pennsylvania's (goodblend) state-of-the-art cannabis growing and processing facility when it is expected to begin operations in mid-2021. A retail brand of Parallel, goodblend is one of eight vertically integrated Clinical Registrants in the Commonwealth and was granted a license in partnership with the University of Pittsburgh School of Medicine in August 2020. In 2021, goodblend intends to open its growing and processing facility as well as two approved retail facilities in Pittsburgh and Erie, and will work to identify and open four additional allowed retail locations.
"This marks the fourth sale-leaseback transaction we've conducted with IIP, representing total proceeds of approximately $195 million in deal value to date. The collaboration with IIP supports our growth in Florida, Texas, and now Pennsylvania and helps us advance our mission to improve the quality of life through cannabinoids," said William "Beau" Wrigley Jr., Chairman and CEO for Parallel. "Completion of our growing and processing facility is an important step as we enter the growing Pennsylvania cannabis market. While we were granted our Clinical Registrant license in the Commonwealth in August 2020, which includes a Clinical Research Partnership with the University of Pittsburgh School of Medicine, we now look forward to serving customers at our first goodblend retail stores in Pittsburgh and Erie, which we intend to open this summer."
Following the completion of phase one of the renovation, the Pittsburgh warehouse will have approximately 124,000 square feet of usable space by Parallel with an additional 36,000 square feet available for future expansion.
"goodblend Pennsylvania is already hiring for the hundreds of new jobs that we ultimately expect to create in Western Pennsylvania. We have also begun local job recruitment initiatives and expungement programs to support inclusion and economic empowerment within the Commonwealth. Wherever possible, we focus on hiring local and outreach and training for workers in underserved communities," said Elizabeth (Liz) Conway, Regional President, Parallel and goodblend Pennsylvania.
Pennsylvania, with almost 13 million residents, is the sixth most populous state in the U.S. The Commonwealth's Medical Marijuana Program today has more than 425,000 registered patients.
About goodblend Pennsylvania
goodblend Pennsylvania is a retail brand of Parallel and was granted a vertically-integrated Clinical Registrant license in partnership with the University of Pittsburgh School of Medicine in August 2020. The Clinical Research Partnership with University of Pittsburgh School of Medicine, one of the leading medical research schools in the world, will initially focus on the impact of medicinal cannabis on various symptoms of sickle cell disease and chronic pain.
The goodblend retail brand reflects Parallel's intent to lead the way to the future of cannabis by providing its customers a trusted, consistent, and seamless way for them to connect and learn, and to access innovative, high-quality cannabis products in a variety of form factors and to elicit such a positive experience that they come back again and again. The brand is about welcoming every type of customer and being an approachable source of products and information to support our customers' well-being. The ethos of goodblend is based on Parallel's commitment to compliance, quality and innovation, and on our actions to improve diversity, inclusivity and economic empowerment in the cannabis industry, and to be a great employer and local community partner.