UC Asset LP (OTCQB: UCASU) Completes Cannabis Property Acquisition Worth $3 Million

The acquisition of new assets is generally seen as a positive by investors, and this morning, the reaction of the market to the latest acquisition from UC Asset LP (OTCQB: UCASU) could be worth tracking. The company came into focus on Tuesday after it made an announcement with regards to a new cannabis property acquisition.

Key Acquisition

In the news release, UC Asset announced that it had been successful in completing the cannabis property acquisition in a non-cash deal worth as much as $3 million. The company revealed that the property also included office space of 1550 square feet and a cannabis cultivation area to the tune of 16500 square feet. However, in this context, it should be noted that the company previously owned 50% of the above-mentioned property, and in the latest deal, it acquired the rest of the property for $1.5 million.

Further Details

The company also revealed that a licensed independent appraiser had valued the property at $3.4 million at replacement cost, and it excluded all the equipment for cannabis cultivation. UC Asset completed the deal through the issuance of a preferred share with a face value of $1 million, $250,000 in equity, and $250,000 in financing from a third party.

Management Quote

“With the exception of $250,000 in financing, the remaining $1.25 million is de facto an investment by the seller in our company,” says Larry Wu, founder of UC Asset. “Since the seller is also a major owner of the current tenant, this can be interpreted as our tenant has become a strategic investor in UC Asset.”