Item 8.01 Other Events

On January 9th, 2020, an AmeriCann's Joint Venture partner, Bask, Inc. ("Bask") received unanimous approval from the Cannabis Control Commission ("CCC") for two Adult-Use Marijuana Retail licenses in Massachusetts. The additional licenses increase the total licenses held by Bask to 7, including 3 Final Medical Treatment Center licenses, and 4 Provisional Adult Use licenses. The maximum number of licenses allowed for any one entity is 10. Bask has received approval from the CCC to change the location of Bask's existing Cultivation and Product Manufacturing license to AmeriCann's Massachusetts Cannabis Center ("MCC") in Freetown, MA.

Bask commenced monthly base-rent payments for Building 1 at MCC on September 1, 2019, as part of the 15-year JV Partnership. Bask will pay a revenue participation fee to AmeriCann of 15% of gross revenue from all cannabis and cannabis products produced at Building 1. AmeriCann expects revenue from the Revenue Participation Fee to begin in Q1 of 2020.

AmeriCann has received a Certificate of Occupancy for Building 1, which is the first phase of the Massachusetts Cannabis Center. The MCC is a planned one million square foot sustainable greenhouse, processing and product manufacturing project in Freetown, Massachusetts which is being developed by AmeriCann.

The Massachusetts cannabis market has some of the highest prices in the United States, with wholesale prices exceeding $4,000 per pound and retail prices greater than $8,000 per pound. Building 1 is projected to produce 7,500 pounds annually of dry flower cannabis and over 400,000 units of infused products. AmeriCann projects a 1.5-year payback on its investment in Building 1.


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