Metrospaces Inc., a real estate investment firm based in the U.S., has reportedly inked a binding JV agreement with the LBCC Group, a private equity firm based in the Czech Republic, Europe, for acquiring a lucrative, licensed cannabis facility in California.

According to sources familiar with the matter, the company had taken a management decision approximately in May 2018, in a bid to shift the focus of its resources and business strategies towards the cannabis industry. The company basically aims to leverage its extensive experience in real estate development and financing, in order to establish joint venture partnerships to own and operate real estate-based cannabis operations.

Reportedly, the facility, which is situated in California’s Adelanto, comprises a 12,000 square feet canopy facility certified for cultivating, manufacturing, and distributing about 300 lbs. of cannabis production on a monthly basis. Currently, the production generates around $7.2 million in annual income with approximately $4.5 million in operating profits per year. Furthermore, the site is established on a land spanning 6.5 acres which allows for building another 8,000 square feet licensed canopy.

Mr. Oscar Brito, Founder and Executive President of Metrospaces Inc., revealed in a statement that this acquisition is anticipated to introduce the real-estate company in the cannabis industry. He claimed that the operation is very efficient with considerable upside potential and probably perfect for the company to focus on after its positive experience in IQSTel, a U.S.-based telecom technology company.

Apparently, the LBCC Group has executed a PPA (Property Purchase Agreement) with the facility seller, which is set to be closed in about 90 days. Metrospaces will provide the acquisition’s equity portion agreed at $20 million and will also retain 75 percent of the business in the beginning, though the LBCC Group is likely to gain an extra 10 percent equity stake subject to achievement of certain economic goals.

The company revealed that it is rather thrilled about acquiring and operating the facility and setting a firm foot in the cannabis industry.