UC Asset LP (OTCMKTS: UCASU) management is thoughtfully positive that it could benefit from Puration Inc.’s (OTCMKTS: PURA) $10 million revenue project, declared in a press announcement by PURA. UCASU owns a significant stake in PURA and is part of an under LOI to invest in marijuana assets run by PURA.
PURA targeting revenue of $10 million
PURA Managing Partner Greg Bankston said, “We are encouraged to see the optimistic projection by PURA, particularly from operation of its new Farmersville Hemp Brand. We are committed to invest into the real estate of Farmersville Hemp Brand’s facility, which is central to PURA’s updated business plan. However, the schedule and scale of our investment will depend on PURA’s implementation of a productive business plan to construct such a facility and monetize from its continuous operation. That PURA has set up a strategy to achieve $10 million revenue is a solid step to achieve our common business goal.”
Apart from supplying funds and owning the property title, UCASU will not engage in the everyday administration of either the building or operation of the said facility as a property investor. Therefore, if Pration’s business model succeeds, UCASU’s return on investment in the property will improve, either through rent increases or profit-sharing.
UCASU may earn revenue from PURA as a shareholder in addition to the direct yield from the property. UCASU currently owns about 7.5 percent of PURA’s stock in the form of restricted shares. Although UCASU will not be able to sell the restricted stock in the foreseeable future, it may earn a dividend if PURA makes a profit.
UCASU has a backlog of deals in several states
At the start of Q4 2021, UCASU revealed plans to extend its portfolio into marijuana assets, using an investment approach similar to that of other sector leaders like Power REIT. In February 2020, Power REIT disclosed its cannabis investments. Since then, its sales have doubled, with the stock price increasing sevenfold. UCASU does have a backlog of deals in multiple states, including Florida, Georgia, California, Oklahoma, and Michigan.