OLD BETHPAGE, N.Y., May 24, 2021 – PRESS RELEASE – Millennium Investment & Acquisition Co. Inc. (MILC) announced that it has agreed to invest in a newly formed cannabis operator Walsenburg Cannabis LLC (WC). As part of the transaction, MILC has agreed to lend capital to WC for its business operations and MILC is in the process of obtaining regulatory approvals for holding cannabis licenses in Colorado. Upon receiving regulatory approval, it is contemplated that the company would become the majority owner of WC in the form of a preferred equity ownership stake.
Simultaneous with MILC’s investment, WC entered into a long-term lease for real estate purchased by Power REIT. David H. Lesser, MILC’s chairman and CEO is also chairman and CEO of Power REIT. The approximately 22.2-acre site includes existing greenhouse and processing space (the “property”). As part of the lease, Power REIT has agreed to fund the rehabilitation and upgrading of the existing improvements and the construction of additional greenhouse space. Upon completion of this work, the property will have a total of approximately 102,800 square feet of greenhouse and related space. Millennium Investment’s total capital commitment for the project is $750,000.
“This transaction represents a new area of focus for MILC as MILC seeks to transition from an investment company under Securities and Exchange Act of 1940,” Lesser said. “As previously disclosed, MILC is actively selling its sole investment in securities and is converting to an operating business with two areas of focus: sustainable cannabis cultivation in greenhouses and production of activated carbon. MILC is enthusiastic about the prospects for these two focus areas, and I look forward to announcing additional exciting developments in the near future.”
WC is led by President Jared Schrader, an experienced cannabis cultivation operator with a solid track record. Schrader grew revenue at a Colorado cannabis cultivation facility from annual revenue of $150,000 to weekly revenue of over $150,000 (i.e., more than $8 million annually) over the span of two years.
“The property is subdivided into five parcels that each have local approval for the cultivation of cannabis. This allows the property to pursue a rapid growth plan given the nature of Colorado cannabis licensing which is based on a limited plant count initially per property,” Schrader said. “Once performance is demonstrated to the regulators, each property will have the potential to ‘tier-up’ and add more plants. Based on the initial property configuration, WC intends to quickly establish approximately 11,000 cannabis plants which can be harvested approximately five times per year. Based on recent prices for cannabis in Colorado, this would result an annual run rate of revenue in excess of $10 million. Colorado was the first state to legalize cannabis and is currently the second largest cannabis market in the United States which continues to generate significant demand growth.”
Schrader added, “I believe this property can quickly become a large-scale producer of cannabis and cannabis-related products to serve the Colorado market which is the second largest cannabis market in the United States. I am excited to