Unrivaled Brands, Inc. (OTCQX:UNRV) announced the successful closing of the sale of the company’s non-operating real property and building located on Dyer Road in Santa Ana, California for $13.4 million.
The sale results in the company retiring $9.0 million of outstanding debt on the property. Unrivaled Brands is continuing to evaluate its options with respect to the license originally connected to the Dyer property, including consideration of the retail density in the area. If the city of Santa Ana grants approval to relocate licenses elsewhere in the city, the company 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, Unrivaled Brands 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 $125,000 per month.
“Selling the Dyer Property and eliminating the expenses associated with the property brings us another step closer to positive cash flow," Unrivaled’s CEO Frank Knuettel II stated. "It also represents another step towards us fulfilling the promises to shed non-core or non-operating legacy assets we made to shareholders upon taking over management of the company. We believe that focusing our time and capital on adding brands or dispensaries as well as our 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.”
Price Action
Unrivaled Brands shares traded 1.07% higher at $0.26 per share at the time of writing Thursday morning.
