Power REIT announced that as previously announced, cannabis licensing at the Marengo Township greenhouse cultivation facility has been delayed based on a dispute with Marengo Township Building Official (“BO”). The BO has taken the position that changing the plant grown in the greenhouse to cannabis would require building permits and a Certificate of Occupancy for the existing structure which previously did not require any. On November 21, 2022, representatives of Power REIT met with the Marengo Township Construction Board of Appeals which has agreed to allow the project to proceed as follows: The existing greenhouse portion of the facility was granted the following variances: A variance from the Energy Code requirements: A variance from fire suppression consistent with the conclusion of the Michigan Bureau of Fire Services; A variance related to egress requirements consistent with the conclusion of the Michigan Bureau of Fire Services;Building permits may be required for modifications to the structure but not for the pre-existing structure itself.

Based on the outcome of the CBA hearing, the project is now positioned to move forward with securing state and local cannabis licensing.