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Goodness Growth Holdings has confirmed it has executed a fifth amendment to its lease with its landlord on its cannabis cultivation and manufacturing facilities located in Johnstown, New York.
Goodness Growth Holdings and its landlord have agreed to increase the tenant improvement allowance on the lease by an additional $14.0 million.
The funds will be used to support the completion of the construction of the indoor expansion project that was announced in September 2021 which will see Goodness Growth and Innovative Industrial Properties partner on the development of the project.
Speaking in September at the time of the announcement, Goodness Growth Chairman and Chief Executive Officer, Kyle Kingsley, M.D., stated: “We are looking forward to beginning construction on this state-of-the-art facility in New York, which will immediately become the flagship cultivation and processing facility in our company’s portfolio.
“This facility will produce the highest-quality indoor flower we’ve ever produced and help prepare our business for the massive spike in demand expected when New York’s adult-use cannabis programme goes online next year.
“This facility will also support the expansion of our retail network in New York as we look to open up to four new dispensaries next year, which would bring our total number of stores in New York to eight.”
A monthly base rental increase of $210,000 beginning November 2023 has also been agreed.
Interim Chief Executive Officer Josh Rosen commented: “We believe this lease amendment supports our ongoing divestment process in the State of New York, as it supports the timeline to complete the indoor cultivation facility.”