Cannabis company Unrivaled Brands, Inc. (OTCQX: UNRV) confirmed Monday it will sell its real property and building located on Dyer Road in Santa Ana, California for $13.4 million. The sale is expected to close in January 2022, and the company will retire $9.0 million of outstanding debt on t
Cannabis company Unrivaled Brands, Inc. (OTCQX:UNRV) confirmed Monday it will sell its real property and building located on Dyer Road in Santa Ana, California for $13.4 million. The sale is expected to close in January 2022, and the company will retire $9.0 million of outstanding debt on the property.
“By selling the Dyer Property and eliminating the expenses associated with the property, we are another step closer to positive cash flow,” Unrivaled’s CEO Frank Knuettel II stated. “We believe that focusing our time and capital on brands or other currently operating assets will result in a higher return on investment. We remain focused on becoming the dominant west coast multi-state operator and are continually leveraging our resources to reach that goal.”
The Santa Ana, California-based company noted that it retains local approval to seek a license to open a cannabis dispensary at the Dyer building location. However, following Unrivaled's acquisition of the highly successful People’s dispensary, the company is evaluating its options to develop the license, including consideration of the retail density in the area.
The company expects to make a final determination regarding the dispensary license in or about the first quarter of 2022. If the city of Santa Ana grants approval to relocate licenses elsewhere in the city, Unrivaled may consider using the dispensary license to open a dispensary in an underserved part of Santa Ana.
The sale has the effect of reducing carrying costs, freeing up capital and allowing the company to direct its resources to brands or other dispensaries. With the close of the sale of Dyer Property, the company will no longer bear any carrying costs, which include mortgage payments as well as taxes, insurance, security and other items, saving the company in excess of $100,000 per month.
Unrivaled’s shares were trading 1.48% lower at 33 cents per share at the time of writing Monday morning.