UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01. Other Events –
Update Regarding Marengo Township, Michigan Greenhouse Cultivation Facility
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. We are working on a strategy related to seeking the required permits for some work that has been completed or is in process after which we would expect to receive a Certificate of Occupancy. We are also working on a strategy related to the overall path forward related to this project. There can be no assurance as to how long this process will take.
Update Regarding Portfolio
As previously disclosed, the wholesale prices for Cannabis in Colorado, California and Oklahoma continue to experience significant price compression which is having a negative impact on our portfolio. We will continue to work to try to maximize value from the existing portfolio despite these challenges.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit | Description of Exhibit | |
| 10.1 | Marengo Township Construction Board of Appeals Resolution Granting Variance | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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.
| POWER REIT | ||
| Date: November 23, 2022 | By | /s/ David H. Lesser |
David H. Lesser Chairman of the Board, Chief Executive Officer & Chief Financial Officer | ||