Specifically, the Company has:
- Agreed to sell its property at 422 S. Madison Dr. in Tempe, Ariz. for $2.125 million in gross proceeds. This property is leased to a non-marijuana business, and management views it as non-core to the Company’s strategy. $20,000 has been placed into escrow. The sale is expected to close in approximately 60 days, following due diligence, enabling Zoned Properties to be released from the deed of trust related to the property.
- Received aggregate commitments for $2.020 million in financing from the Company’s Chief Executive Officer and a private investor in the form of convertible debentures bearing an annual interest rate of 6% over a 5-year term. The additional capital will directly contribute to shovel-ready development and expansion plans at the Chino Valley, Arizona cultivation facilities and Tempe, Arizona Medical Marijuana Business Park.
“As we enter 2017, we are in the strongest position in our company’s history, with a streamlined balance sheet, improving access to growth capital and a portfolio of properties well-situated to benefit from the continuing expansion of the licensed marijuana industry,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “During 2016, we cleared the path to expand our properties in Tempe and Chino Valley, Arizona, as well as Parachute, Colorado, and we look forward to completing these expansions and securing additional tenants during 2017. We have expanded and strengthened our board of directors, and established an independent audit committee. Our sustainable approach to property development and risk mitigation is resonating with municipalities and tenants, and I am increasingly confident regarding the Company’s ability to execute its business development strategy. The financial investment made by our largest shareholder has reinforced the strong commitment our shareholders have to the Company and demonstrates the value of the progress we have made to date and our business plans and growth potential going forward.”
“We expect to utilize the proceeds from the property sale and the additional financing to retire a majority of the Company’s debt, including the deed of trust and existing convertible debt. We also plan to complete the next phases of expansion for the tenants at our key licensed marijuana properties, enabling us to generate higher rental revenue and driving sustainable property value,” added Mr. McLaren. “With additional cash on hand and an improved balance sheet we are well-positioned to selectively make additional investments to fuel our growth objectives for the upcoming year.”
About Zoned Properties, Inc. (ZDPY):
Zoned Properties is a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries. The Company acquires commercial properties that face unique zoning challenges and identifies solutions that can potentially have a major impact on the cash flow and value generated. Zoned Properties targets commercial properties that can be acquired and potentially re-zoned for specific purposes. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substances Act.