0001532619 false 0001532619 2021-11-02 2021-11-02 0001532619 PW:CommonSharesMember 2021-11-02 2021-11-02 0001532619 PW:Sec7.75SeriesCumulativeRedeemablePerpetualPreferredStockLiquidationPreference25PerShareMember 2021-11-02 2021-11-02 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): November 2, 2021

 

POWER REIT

(Exact name of registrant as specified in its charter)

 

Maryland

(State or other jurisdiction of incorporation)

 

001-36312

(Commission File Number)

 

45-3116572

(IRS Employer Identification No.)

 

301 Winding Road

Old Bethpage, NY 11804

(Address of principal executive offices and Zip Code)

 

Registrant’s telephone number, including area code: (212) 750-0371

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol   Name of Each Exchange on Which Registered
Common Shares   PW   NYSE (American)
         
7.75% Series A Cumulative Redeemable Perpetual Preferred Stock, Liquidation Preference $25 per Share   PW.A   NYSE (American)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On November 2, 2021, Power REIT (“Power REIT” or the “Trust”), through a wholly owned subsidiary of the Trust (“PropCo”), amended its existing lease (the “Lease”) with Marengo Cannabis LLC. Pursuant to the lease amendment, PropCo is providing funding for additional improvements to the Property on the same economic terms as the original Lease. Power REIT’s capital commitment related to the additional budget items is approximately $4,100,000 which increases the straight-line annual rent by approximately $830,000.

 

The foregoing descriptions of the lease amendment does not purport to be complete and are qualified in its entirety by reference to the complete text of the Lease, a copy of which is attached hereto as Exhibit 10.1 and is incorporated into this Current Report on Form 8-K by reference.

 

Item 7.01 Regulation FD Disclosure.

 

On November 4, 2021, the Trust issued a press release regarding amending the Lease. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in Item 7.01 of this report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Trust, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit   Description of Exhibit
     
10.1   Marengo Cannabis LLC Lease Amendment
     
99.1   Power REIT Press Release issued on November 4, 2021

 

Forward-Looking Statements

 

Some of the information in this press release contains forward-looking statements and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, words such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” “target,” or similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our Annual Report on Form 10-K for our fiscal year ended December 31, 2020, which was filed with the U.S. Securities and Exchange Commission (“SEC”), as well as in other reports that we file with the SEC.

 

Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this press release. We disclaim any obligation to publicly release the results of any revisions to these forward-looking statements reflecting new estimates, events or circumstances after the date of this press release.

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 4, 2021 POWER REIT
     
  By /s/ David H. Lesser
    David H. Lesser
    Chairman of the Board and Chief Executive Officer

 

 

 

 

 

Exhibit 10.1

 

FIRST AMENDMENT TO LEASE AGREEMENT

 

THIS FIRST AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made and entered into as of the 2nd day of November, 2021 (the “Effective Date”) by and between PW MI CanRE Marengo LLC, a Michigan limited liability company (“Landlord”), and Marengo Cannabis LLC, a Michigan limited liability company (“Tenant”).

 

RECITALS:

 

A. Landlord and Tenant are parties to the Lease Agreement dated September 3, 2021 (the “Original Lease”), pursuant to which Tenant leases from Landlord the land and all improvements thereon located at 22695 J Dr N, Marshall, MI 49068 as more particularly described in the Original Lease (the “Premises”).

 

B. Landlord and Tenant desire to amend the Lease to add additional items to the property improvement budget (“the Additional Items”) and to make corresponding changes to the Lease. The Additional Items are described on Exhibit 1- First Amendment, attached hereto.

 

AGREEMENT:

 

THEREFORE, in consideration of the mutual covenants set forth herein, the Lease is hereby amended on the terms and conditions hereinafter set forth.

 

1. Initially capitalized terms not otherwise defined herein will have the meanings given to such terms in the Original Lease.

 

2. The definition of “Base Rent” in the Lease is amended to include the column entitled “Monthly Rent” on the Rent Schedule attached as Exhibit 2 – First Amendment, which will be in addition to the Monthly Rent on the Rent Schedule attached to the Original Lease as Exhibit 2. In the event of the federal legalization of the recreations use of cannabis in the United States, the Base Rent attributable to the Additional Items will be the amount listed in the column entitled “Rent if Reset’ in the Rent Scheduled attached as Exhibit 2 – First Amendment.

 

3. Effective as of the date of this Amendment, Section 11.1 of the Original Lease is amended to require that the Security Deposit shall be $1,877,897 and Tenant shall deposit $152,095 on the Effective Date and an additional $152,095 by August 30, 2022 to fund the increased Security Deposit.

 

4. This Amendment sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof.

 

5. Except as specifically amended, modified or supplemented herein, the Original Lease, as amended hereby, is hereby confirmed and ratified in all respects and will remain in full force and effect according to its terms. In the event of any conflict or inconsistency between the provisions of the Original Lease and this Amendment, the provisions of this Amendment will control in all instances.

 

6. This Amendment may be executed in several counterparts, each of which will be deemed an original, and all of such counterparts together will constitute one and the same instrument. Executed copies hereof may be delivered by telecopy or electronic delivery, and upon receipt, will be deemed originals and binding upon the parties hereto.

 

7. Each party represents and warrants that, as of the date of this Amendment it has the unconditional and unrestricted right, power and authority to enter into this Amendment.

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the date first written above.

 

[SIGNATURE PAGE TO FOLLOW]

 

1
 

 

  TENANT:
     
  Marengo Cannabis LLC,
  a Michigan limited liability company
     
  By:  
  Name:  
  Title:  
     
  LANDLORD:
     
  PW MI CanRE Marengo LLC,
  a Michigan limited liability company
     
  By:  
  Name: David H. Lesser
  Title: Authorized Signatory

 

2
 

 

JOINDER OF GUARANTOR

 

The Guarantor of the Original Lease join herein for the purposes of evidencing their consent to this Amendment, and agreement to be bound all obligations of the Tenant Parties under the Original Lease as amended by this Amendment. The obligations of the Tenant Parties herein shall be joint and several.

 

Millennium Cannabis LLC, a Delaware limited liability company

 

By:    
Name: David H. Lesser  
Title: Authorized Signatory  

 

3
 

 

Exhibit 1 – First Amendment

 

Power REIT Funded Construction Costs        
         
Phase 2 Budget:        
Propagation Space Buildout (40 x 60)     87,290  
Office Improvements (floors and walls)     70,000  
Blackout and Energy Curtains plus install     1,530,059  
Nursery approximately (3/4 acre with Lights)     609,774  
Head House (walls)     24,550  
Priva Control System     280,104  
Video Surveillance System (in addition to prior approval of $130k)     65,000  
Dry and Cure (includes walls and dehumidification equipment only)     922,812  
Greenhouse Improvements     360,984  
         
 Contingency/Development Fee (5%)     197,529  
         
Total Power REIT Funded Construction Costs     4,148,102  
         
Remaining TBD Budget Items include:        
Electrical throughout        
Plumbing throughout        
HVAC throughout        
Dry and Cure Dehumidification Installation        
Security Lighting        
Processing Space Buildout        

 

4
 

 

Exhibit 2 – First Amendment

 

Month   Date   Monthly Rent   Monthly Rent if Reset
1   1-Nov-21   -    NA
2   1-Dec-21   -    NA
3   1-Jan-22   -    NA
4   1-Feb-22   -    NA
5   1-Mar-22   -    NA
6   1-Apr-22   -    NA
7   1-May-22   -    NA
8   1-Jun-22   -    NA
9   1-Jul-22   -    NA
10   1-Aug-22   57,612.53    NA
11   1-Sep-22   57,612.53    NA
12   1-Oct-22   57,612.53    NA
13   1-Nov-22   57,612.53    NA
14   1-Dec-22   57,612.53    NA
15   1-Jan-23   57,612.53    NA
16   1-Feb-23   115,225.06    NA
17   1-Mar-23   115,225.06    NA
18   1-Apr-23   115,225.06    NA
19   1-May-23   115,225.06    NA
20   1-Jun-23   115,225.06    NA
21   1-Jul-23   115,225.06    NA
22   1-Aug-23   115,225.06    NA
23   1-Sep-23   115,225.06    NA
24   1-Oct-23   115,225.06    NA
25   1-Nov-23   115,225.06    NA
26   1-Dec-23   115,225.06    NA
27   1-Jan-24   115,225.06    NA
28   1-Feb-24   115,225.06    NA
29   1-Mar-24   115,225.06    NA
30   1-Apr-24   115,225.06    NA
31   1-May-24   115,225.06    NA
32   1-Jun-24   115,225.06    NA
33   1-Jul-24   115,225.06    NA
34   1-Aug-24   115,225.06    NA
35   1-Sep-24   115,225.06    NA
36   1-Oct-24   115,225.06    NA

 

5
 

 

37   1-Nov-24   115,225.06    NA
38   1-Dec-24   115,225.06    NA
39   1-Jan-25   115,225.06    NA
40   1-Feb-25   172,837.58    NA
41   1-Mar-25   172,837.58    NA
42   1-Apr-25   172,837.58    NA
43   1-May-25   172,837.58    NA
44   1-Jun-25   172,837.58    NA
45   1-Jul-25   172,837.58    NA
46   1-Aug-25   50,698.52    NA
47   1-Sep-25   50,698.52    NA
48   1-Oct-25   50,698.52    NA
49   1-Nov-25   50,698.52    NA
50   1-Dec-25   50,698.52    NA
51   1-Jan-26   50,698.52    NA
52   1-Feb-26   50,698.52    NA
53   1-Mar-26   50,698.52    NA
54   1-Apr-26   50,698.52    NA
55   1-May-26   50,698.52    NA
56   1-Jun-26   50,698.52    NA
57   1-Jul-26   50,698.52    NA
58   1-Aug-26   52,219.48    NA
59   1-Sep-26   52,219.48    NA
60   1-Oct-26   52,219.48    NA
61   1-Nov-26   52,219.48    NA
62   1-Dec-26   52,219.48    NA
63   1-Jan-27   52,219.48    NA
64   1-Feb-27   52,219.48    NA
65   1-Mar-27   52,219.48    NA
66   1-Apr-27   52,219.48    NA
67   1-May-27   52,219.48    NA
68   1-Jun-27   52,219.48    NA
69   1-Jul-27   52,219.48    NA
70   1-Aug-27   53,786.06    NA
71   1-Sep-27   53,786.06    NA
72   1-Oct-27   53,786.06    NA
73   1-Nov-27   53,786.06   31,110.77
74   1-Dec-27   53,786.06   31,110.77
75   1-Jan-28   53,786.06   31,110.77

 

6
 

 

76   1-Feb-28   53,786.06   31,110.77
77   1-Mar-28   53,786.06   31,110.77
78   1-Apr-28   53,786.06   31,110.77
79   1-May-28   53,786.06   31,110.77
80   1-Jun-28   53,786.06   31,110.77
81   1-Jul-28   53,786.06   31,110.77
82   1-Aug-28   55,399.64   31,110.77
83   1-Sep-28   55,399.64   31,110.77
84   1-Oct-28   55,399.64   31,110.77
85   1-Nov-28   55,399.64   32,044.09
86   1-Dec-28   55,399.64   32,044.09
87   1-Jan-29   55,399.64   32,044.09
88   1-Feb-29   55,399.64   32,044.09
89   1-Mar-29   55,399.64   32,044.09
90   1-Apr-29   55,399.64   32,044.09
91   1-May-29   55,399.64   32,044.09
92   1-Jun-29   55,399.64   32,044.09
93   1-Jul-29   55,399.64   32,044.09
94   1-Aug-29   57,061.63   32,044.09
95   1-Sep-29   57,061.63   32,044.09
96   1-Oct-29   57,061.63   32,044.09
97   1-Nov-29   57,061.63   33,005.41
98   1-Dec-29   57,061.63   33,005.41
99   1-Jan-30   57,061.63   33,005.41
100   1-Feb-30   57,061.63   33,005.41
101   1-Mar-30   57,061.63   33,005.41
102   1-Apr-30   57,061.63   33,005.41
103   1-May-30   57,061.63   33,005.41
104   1-Jun-30   57,061.63   33,005.41
105   1-Jul-30   57,061.63   33,005.41
106   1-Aug-30   58,773.48   33,005.41
107   1-Sep-30   58,773.48   33,005.41
108   1-Oct-30   58,773.48   33,005.41
109   1-Nov-30   58,773.48   33,995.57
110   1-Dec-30   58,773.48   33,995.57
111   1-Jan-31   58,773.48   33,995.57
112   1-Feb-31   58,773.48   33,995.57
113   1-Mar-31   58,773.48   33,995.57
114   1-Apr-31   58,773.48   33,995.57

 

7
 

 

115   1-May-31   58,773.48   33,995.57
116   1-Jun-31   58,773.48   33,995.57
117   1-Jul-31   58,773.48   33,995.57
118   1-Aug-31   60,536.69   33,995.57
119   1-Sep-31   60,536.69   33,995.57
120   1-Oct-31   60,536.69   33,995.57
121   1-Nov-31   60,536.69   35,015.44
122   1-Dec-31   60,536.69   35,015.44
123   1-Jan-32   60,536.69   35,015.44
124   1-Feb-32   60,536.69   35,015.44
125   1-Mar-32   60,536.69   35,015.44
126   1-Apr-32   60,536.69   35,015.44
127   1-May-32   60,536.69   35,015.44
128   1-Jun-32   60,536.69   35,015.44
129   1-Jul-32   60,536.69   35,015.44
130   1-Aug-32   62,352.79   35,015.44
131   1-Sep-32   62,352.79   35,015.44
132   1-Oct-32   62,352.79   35,015.44
133   1-Nov-32   62,352.79   36,065.90
134   1-Dec-32   62,352.79   36,065.90
135   1-Jan-33   62,352.79   36,065.90
136   1-Feb-33   62,352.79   36,065.90
137   1-Mar-33   62,352.79   36,065.90
138   1-Apr-33   62,352.79   36,065.90
139   1-May-33   62,352.79   36,065.90
140   1-Jun-33   62,352.79   36,065.90
141   1-Jul-33   62,352.79   36,065.90
142   1-Aug-33   64,223.37   36,065.90
143   1-Sep-33   64,223.37   36,065.90
144   1-Oct-33   64,223.37   36,065.90
145   1-Nov-33   64,223.37   37,147.88
146   1-Dec-33   64,223.37   37,147.88
147   1-Jan-34   64,223.37   37,147.88
148   1-Feb-34   64,223.37   37,147.88
149   1-Mar-34   64,223.37   37,147.88
150   1-Apr-34   64,223.37   37,147.88
151   1-May-34   64,223.37   37,147.88
152   1-Jun-34   64,223.37   37,147.88
153   1-Jul-34   64,223.37   37,147.88

 

8
 

 

154   1-Aug-34   66,150.07   37,147.88
155   1-Sep-34   66,150.07   37,147.88
156   1-Oct-34   66,150.07   37,147.88
157   1-Nov-34   66,150.07   38,262.32
158   1-Dec-34   66,150.07   38,262.32
159   1-Jan-35   66,150.07   38,262.32
160   1-Feb-35   66,150.07   38,262.32
161   1-Mar-35   66,150.07   38,262.32
162   1-Apr-35   66,150.07   38,262.32
163   1-May-35   66,150.07   38,262.32
164   1-Jun-35   66,150.07   38,262.32
165   1-Jul-35   66,150.07   38,262.32
166   1-Aug-35   68,134.57   38,262.32
167   1-Sep-35   68,134.57   38,262.32
168   1-Oct-35   68,134.57   38,262.32
169   1-Nov-35   68,134.57   39,410.19
170   1-Dec-35   68,134.57   39,410.19
171   1-Jan-36   68,134.57   39,410.19
172   1-Feb-36   68,134.57   39,410.19
173   1-Mar-36   68,134.57   39,410.19
174   1-Apr-36   68,134.57   39,410.19
175   1-May-36   68,134.57   39,410.19
176   1-Jun-36   68,134.57   39,410.19
177   1-Jul-36   68,134.57   39,410.19
178   1-Aug-36   70,178.61   39,410.19
179   1-Sep-36   70,178.61   39,410.19
180   1-Oct-36   70,178.61   39,410.19
181   1-Nov-36   70,178.61   40,592.49
182   1-Dec-36   70,178.61   40,592.49
183   1-Jan-37   70,178.61   40,592.49
184   1-Feb-37   70,178.61   40,592.49
185   1-Mar-37   70,178.61   40,592.49
186   1-Apr-37   70,178.61   40,592.49
187   1-May-37   70,178.61   40,592.49
188   1-Jun-37   70,178.61   40,592.49
189   1-Jul-37   70,178.61   40,592.49
190   1-Aug-37   72,283.97   40,592.49
191   1-Sep-37   72,283.97   40,592.49
192   1-Oct-37   72,283.97   40,592.49

 

9
 

 

193   1-Nov-37   72,283.97   41,810.27
194   1-Dec-37   72,283.97   41,810.27
195   1-Jan-38   72,283.97   41,810.27
196   1-Feb-38   72,283.97   41,810.27
197   1-Mar-38   72,283.97   41,810.27
198   1-Apr-38   72,283.97   41,810.27
199   1-May-38   72,283.97   41,810.27
200   1-Jun-38   72,283.97   41,810.27
201   1-Jul-38   72,283.97   41,810.27
202   1-Aug-38   74,452.49   41,810.27
203   1-Sep-38   74,452.49   41,810.27
204   1-Oct-38   74,452.49   41,810.27
205   1-Nov-38   74,452.49   43,064.57
206   1-Dec-38   74,452.49   43,064.57
207   1-Jan-39   74,452.49   43,064.57
208   1-Feb-39   74,452.49   43,064.57
209   1-Mar-39   74,452.49   43,064.57
210   1-Apr-39   74,452.49   43,064.57
211   1-May-39   74,452.49   43,064.57
212   1-Jun-39   74,452.49   43,064.57
213   1-Jul-39   74,452.49   43,064.57
214   1-Aug-39   76,686.06   43,064.57
215   1-Sep-39   76,686.06   43,064.57
216   1-Oct-39   76,686.06   43,064.57
217   1-Nov-39   76,686.06   44,356.51
218   1-Dec-39   76,686.06   44,356.51
219   1-Jan-40   76,686.06   44,356.51
220   1-Feb-40   76,686.06   44,356.51
221   1-Mar-40   76,686.06   44,356.51
222   1-Apr-40   76,686.06   44,356.51
223   1-May-40   76,686.06   44,356.51
224   1-Jun-40   76,686.06   44,356.51
225   1-Jul-40   76,686.06   44,356.51
226   1-Aug-40   78,986.65   44,356.51
227   1-Sep-40   78,986.65   44,356.51
228   1-Oct-40   78,986.65   44,356.51
229   1-Nov-40   78,986.65   45,687.21
230   1-Dec-40   78,986.65   45,687.21
231   1-Jan-41   78,986.65   45,687.21
232   1-Feb-41   78,986.65   45,687.21
233   1-Mar-41   78,986.65   45,687.21
234   1-Apr-41   78,986.65   45,687.21
235   1-May-41   78,986.65   45,687.21
236   1-Jun-41   78,986.65   45,687.21
237   1-Jul-41   78,986.65   45,687.21
238   1-Aug-41   81,356.24   45,687.21
239   1-Sep-41   81,356.24   45,687.21
240   1-Oct-41   81,356.24   45,687.21

 

10
 

 

Option Period 1:

241   1-Nov-41   81,356.24   47,057.82
242   1-Dec-41   81,356.24   47,057.82
243   1-Jan-42   81,356.24   47,057.82
244   1-Feb-42   81,356.24   47,057.82
245   1-Mar-42   81,356.24   47,057.82
246   1-Apr-42   81,356.24   47,057.82
247   1-May-42   81,356.24   47,057.82
248   1-Jun-42   81,356.24   47,057.82
249   1-Jul-42   81,356.24   47,057.82
250   1-Aug-42   83,796.93   47,057.82
251   1-Sep-42   83,796.93   47,057.82
252   1-Oct-42   83,796.93   47,057.82
253   1-Nov-42   83,796.93   48,469.56
254   1-Dec-42   83,796.93   48,469.56
255   1-Jan-43   83,796.93   48,469.56
256   1-Feb-43   83,796.93   48,469.56
257   1-Mar-43   83,796.93   48,469.56
258   1-Apr-43   83,796.93   48,469.56
259   1-May-43   83,796.93   48,469.56
260   1-Jun-43   83,796.93   48,469.56
261   1-Jul-43   83,796.93   48,469.56
262   1-Aug-43   86,310.84   48,469.56
263   1-Sep-43   86,310.84   48,469.56
264   1-Oct-43   86,310.84   48,469.56
265   1-Nov-43   86,310.84   49,923.64
266   1-Dec-43   86,310.84   49,923.64
267   1-Jan-44   86,310.84   49,923.64

 

11
 

 

268   1-Feb-44   86,310.84   49,923.64
269   1-Mar-44   86,310.84   49,923.64
270   1-Apr-44   86,310.84   49,923.64
271   1-May-44   86,310.84   49,923.64
272   1-Jun-44   86,310.84   49,923.64
273   1-Jul-44   86,310.84   49,923.64
274   1-Aug-44   88,900.17   49,923.64
275   1-Sep-44   88,900.17   49,923.64
276   1-Oct-44   88,900.17   49,923.64
277   1-Nov-44   88,900.17   51,421.35
278   1-Dec-44   88,900.17   51,421.35
279   1-Jan-45   88,900.17   51,421.35
280   1-Feb-45   88,900.17   51,421.35
281   1-Mar-45   88,900.17   51,421.35
282   1-Apr-45   88,900.17   51,421.35
283   1-May-45   88,900.17   51,421.35
284   1-Jun-45   88,900.17   51,421.35
285   1-Jul-45   88,900.17   51,421.35
286   1-Aug-45   91,567.17   51,421.35
287   1-Sep-45   91,567.17   51,421.35
288   1-Oct-45   91,567.17   51,421.35
289   1-Nov-45   91,567.17   52,963.99
290   1-Dec-45   91,567.17   52,963.99
291   1-Jan-46   91,567.17   52,963.99
292   1-Feb-46   91,567.17   52,963.99
293   1-Mar-46   91,567.17   52,963.99
294   1-Apr-46   91,567.17   52,963.99
295   1-May-46   91,567.17   52,963.99
296   1-Jun-46   91,567.17   52,963.99
297   1-Jul-46   91,567.17   52,963.99
298   1-Aug-46   94,314.19   52,963.99
299   1-Sep-46   94,314.19   52,963.99
300   1-Oct-46   94,314.19   52,963.99

 

12
 

 

Option Period 2:

301   1-Nov-46   94,314.19   54,552.91
302   1-Dec-46   94,314.19   54,552.91
303   1-Jan-47   94,314.19   54,552.91
304   1-Feb-47   94,314.19   54,552.91
305   1-Mar-47   94,314.19   54,552.91
306   1-Apr-47   94,314.19   54,552.91
307   1-May-47   94,314.19   54,552.91
308   1-Jun-47   94,314.19   54,552.91
309   1-Jul-47   94,314.19   54,552.91
310   1-Aug-47   97,143.61   54,552.91
311   1-Sep-47   97,143.61   54,552.91
312   1-Oct-47   97,143.61   54,552.91
313   1-Nov-47   97,143.61   56,189.50
314   1-Dec-47   97,143.61   56,189.50
315   1-Jan-48   97,143.61   56,189.50
316   1-Feb-48   97,143.61   56,189.50
317   1-Mar-48   97,143.61   56,189.50
318   1-Apr-48   97,143.61   56,189.50
319   1-May-48   97,143.61   56,189.50
320   1-Jun-48   97,143.61   56,189.50
321   1-Jul-48   97,143.61   56,189.50
322   1-Aug-48   100,057.92   56,189.50
323   1-Sep-48   100,057.92   56,189.50
324   1-Oct-48   100,057.92   56,189.50
325   1-Nov-48   100,057.92   57,875.19
326   1-Dec-48   100,057.92   57,875.19
327   1-Jan-49   100,057.92   57,875.19
328   1-Feb-49   100,057.92   57,875.19
329   1-Mar-49   100,057.92   57,875.19
330   1-Apr-49   100,057.92   57,875.19
331   1-May-49   100,057.92   57,875.19
332   1-Jun-49   100,057.92   57,875.19
333   1-Jul-49   100,057.92   57,875.19
334   1-Aug-49   103,059.66   57,875.19
335   1-Sep-49   103,059.66   57,875.19
336   1-Oct-49   103,059.66   57,875.19
337   1-Nov-49   103,059.66   59,611.44
338   1-Dec-49   103,059.66   59,611.44
339   1-Jan-50   103,059.66   59,611.44
340   1-Feb-50   103,059.66   59,611.44
341   1-Mar-50   103,059.66   59,611.44
342   1-Apr-50   103,059.66   59,611.44
343   1-May-50   103,059.66   59,611.44
344   1-Jun-50   103,059.66   59,611.44
345   1-Jul-50   103,059.66   59,611.44
346   1-Aug-50   106,151.45   59,611.44
347   1-Sep-50   106,151.45   59,611.44
348   1-Oct-50   106,151.45   59,611.44
349   1-Nov-50   106,151.45   61,399.79
350   1-Dec-50   106,151.45   61,399.79
351   1-Jan-51   106,151.45   61,399.79
352   1-Feb-51   106,151.45   61,399.79
353   1-Mar-51   106,151.45   61,399.79
354   1-Apr-51   106,151.45   61,399.79
355   1-May-51   106,151.45   61,399.79
356   1-Jun-51   106,151.45   61,399.79
357   1-Jul-51   106,151.45   61,399.79
358   1-Aug-51   109,335.99   61,399.79
359   1-Sep-51   109,335.99   61,399.79
360   1-Oct-51   109,335.99   61,399.79

 

13

 

 

Exhibit 99.1

 

 

Power REIT Amends Lease to Fund Phase 2 of Greenhouse Improvements at property in Marengo Township, Michigan

 

Old Bethpage, New York, November 4, 2021 (GLOBE NEWSWIRE) Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”) today announced that it has finalized a lease amendment (the “Amendment”) to fund additional improvements to its greenhouse cultivation facility in Marengo Township, MI (the “Property”). Pursuant to the Amendment, Power REIT is providing funding for additional improvements to the Property on the same economic terms as the original lease. Power REIT’s capital commitment related to the additional budget items is approximately $4,100,000 which increases the straight-line annual rent by approximately $830,000 which represents an approximately 20% unleveraged core FFO yield.

 

Including the additional funding announced today, Power REIT’s total capital commitment is approximately $25,600,000 million for the purchase and improvement of 556,146 square feet of greenhouse and processing space. The 20 year “triple-net” lease is structured to provide straight-line annual rent of approximately $5,100,000, which represents an unleveraged core FFO yield of approximately 20% on Power REIT’s invested capital.

 

The Property is leased to Marengo Cannabis LLC, which is a wholly owned subsidiary of Millennium Cannabis LLC which is a wholly owned subsidiary of Millennium Investment & Acquisition Company (ticker: MILC). David Lesser is Chairman and CEO of Power REIT and also Chairman and CEO of Millennium Investment & Acquisition Company.

 

Property Improvements

 

The additional items for Phase 2 of facility improvements focus on transitioning the facility from pepper farming to cannabis cultivation. The greenhouse upgrades include air circulation fans, exhaust fans with carbon filters as well as installation of an upgraded greenhouse automation system. The existing energy curtain will be replaced, and a blackout curtain will be added for photoperiod control necessary for optimizing greenhouse cultivation of cannabis. Three quarters of an acre of the greenhouse will be converted into nursery space adjacent to the new state-of-the-art propagation room that is currently under construction. The construction of fourteen dedicated spaces incorporating precision energy-efficient environmental control equipment will ensure optimal conditions for the critical phase of drying and curing the harvested plants. Other general improvements are included in this lease addendum as well as upgrades to the office space, upgrades to the head-house, and installation of video surveillance and other security systems.

 

Construction and Progress

 

Improvements are currently underway for the modifications contemplated in the original lease. Perimeter security fencing, site grading, access gates and the parking lot are nearing completion. Fire separation between the head house and post-production has been erected and the construction of the propagation room is underway. Jared Schrader, President of Millennium Cannabis commented, “We are very pleased with the pace of construction at the Marengo, Michigan project. The funding provided by the lease amendment will enable us to continue the construction progress and our pathway to revenue. Approvals at the township level are moving along well and we have received approval from the Planning Committee and are currently working on next steps with the State of Michigan and Marengo township for the final site plan. Licensing is progressing as expected and we hope to commence cultivation of plants in early 2022.”

 

 
 

 

Michigan Cannabis Market Update

 

For the month of September 2021, the Michigan Marijuana Regulatory Agency (“MMRA”) reported regulated cannabis product sales of $161,339,691 (Medical and Adult Use) which represents 52.4% growth year over year. The price of flower in Michigan remains strong at $3,064 (MMRA), as impressive sales growth continues with total sales for 2021 on track to reach $2 billion.

 

David Lesser, Chairman and CEO of Power REIT commented, “We are pleased with the progress we have made since acquiring this property which we believe will be the largest cannabis cultivation facility in Michigan. The Michigan market remains very strong, and we are confident that Millennium Cannabis is putting in place a plan to become a low-cost large-scale producer of cannabis related products within the Michigan market. We believe we acquired this property at an attractive basis that, once operational, should provide Millennium Cannabis a competitive advantage. This transaction represents the latest example of Power REIT’s ability to deploy capital on a highly accretive basis.”

 

Statement on Sustainability

 

Power REIT owns real estate related to infrastructure assets including properties for Controlled Environment Agriculture facilities with a focus on greenhouses, Renewable Energy and Transportation.

 

CEA facilities in the form of greenhouses, provide an extremely environmentally friendly solution, which consume approximately 70% less energy than indoor growing operations that do not benefit from “free” sunlight. greenhouses use 90% less water than field grown plants, and all of Power REIT’s greenhouse properties operate without the use of pesticides and avoid agricultural runoff of fertilizers and pesticides. These facilities cultivate medical Cannabis, which has been recommended to help manage a myriad of medical symptoms, including seizures and spasms, multiple sclerosis, post-traumatic stress disorder, migraines, arthritis, Parkinson’s disease, and Alzheimer’s.

 

Renewable Energy assets are comprised of land and infrastructure associated with utility scale solar farms. These projects produce power without the use of fossil fuels thereby lowering carbon emissions. The solar farms produce approximately 50,000,000 kWh of electricity annually which is enough to power approximately 4,600 homes on a carbon free basis.

 

Transportation assets are comprised of land associated with a railroad, an environmentally friendly mode of bulk transportation.

 

About Power REIT

 

Power REIT, with a focus on the “Triple Bottom Line” and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture in the form of greenhouses for the cultivation of food and cannabis.

 

 
 

 

Additional information about Power REIT can be found on its website: www.pwreit.com

 

About Millennium Investment & Acquisition Co. Inc.

 

Millennium Investment and Acquisition Co. Inc. (ticker: MILC) is an internally managed, non-diversified, closed-end investment company. During 2020, MILC announced that it was seeking to de-register as an Investment Company that is regulated under Investment Company Act of 1940. MILC is currently seeking an Order from the SEC declaring that it has ceased to be an Investment Company as it no longer meets the definition of holding itself out as investing in securities but rather has pivoted to focus on direct investments in operating businesses.

 

MILC is currently focusing on opportunities in sustainable cannabis cultivation in greenhouses and sustainable production of activated carbon.

 

Additional information about MILC can be found on its website: www.millinvestment.com

 

Cautionary Statement About Forward-Looking Statements

 

This document includes forward-looking statements within the meaning of the U.S. securities laws. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe,” “expect,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”, “seek” or other similar expressions, or negatives of those expressions, although not all forward-looking statements contain these identifying words. All statements contained in this document regarding our future strategy, future operations, future prospects, the future of our industries and results that might be obtained by pursuing management’s current or future plans and objectives are forward-looking statements. You should not place undue reliance on any forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date of the filing of this document. Over time, our actual results, performance, financial condition or achievements may differ from the anticipated results, performance, financial condition or achievements that are expressed or implied by our forward-looking statements, and such differences may be significant and materially adverse to our security holders.

 

Contact:

David H. Lesser, Chairman & CEO Mary Jensen, Investor Relations
dlesser@pwreit.com mary@irrealized.com
212-750-0371 310-526-1707
   

301 Winding Road

Old Bethpage, NY 11804

 
www.pwreit.com