Market Overview

The Inception Companies to Launch First Cannabis REIT Sponsored by an Industry-Leading Investment Firm, Filling Void in the Real Estate Capital Markets


Inception REIT Will Provide Real Estate Capital Solutions, and a
Yield-Oriented, Asset-Based Investment Opportunity

Inception Companies
("Inception"), a private investment firm with
significant operating and investing experience across the regulated U.S.
cannabis industry, is pleased to announce the launch of Inception
("I-REIT"). I-REIT is a first-of-its-kind platform providing
real estate debt and equity capital to medicinal and adult-use cannabis
businesses, while delivering investors an attractive investment
opportunity in one of the nation's fastest-growing industries.

Due to current federal law, cannabis-related businesses have limited
access to traditional financing sources. As a result, even the most
established state-licensed businesses raise capital for real estate uses
by selling equity, or via short-term hard money loans. These financing
challenges, combined with the complexity of zoning and land use
regulations, have created significant leasing and trading premiums for
the limited supply of eligible real estate assets.

"As the first eight-figure investor in MedMen
(CSE:MMEN) and a capital partner in leading cannabis businesses
including Juul/Pax,
, and The
Pharm (Sunday Goods)
, we have been fortunate to be at the forefront
of this dynamic industry," said Omar Mangalji, co-founder
of Inception. "Even though 92% of states already have cannabis access
laws, institutional capital is still not widely available. We couldn't
be more thrilled to introduce a dedicated platform for what most people
don't realize is a real estate intensive industry," Mangalji added.

I-REIT will leverage Inception's hands-on experience navigating the
industry's unique operational challenges and regulatory hurdles, as well
as the firm's broad industry network and proprietary deal flow. I-REIT
will focus exclusively on real estate-based financing opportunities with
established cannabis businesses that have been granted the requisite
state and local operating licenses and permits. Transaction structures
will include sale-leasebacks, senior debt originations, and select
capital improvement financings. Real estate asset types will include
specialized commercial and industrial buildings in markets with the most
developed cannabis regulations, starting with California.

"As cannabis continues to evolve as a natural plant-based medicine and
adult-use consumer product, I-REIT is positioned to be the industry's
go-to real estate capital partner through bespoke debt and equity
financings for cultivation, manufacturing, distribution, and retail
assets," said Brent Cox, co-founder of Inception. "We look forward to
expanding our investment activities with the creation of and investment
in I-REIT, which will allow operators to streamline their capital
structures, remain asset-light, and bolster higher ROI operating
activities," Cox added.

I-REIT's investment goals are to deliver:

  • A yield-oriented investment strategy, producing attractive asset-based
  • Diversification across equity and debt investments, asset types, and
    geographies; and
  • Recurring dividend income in a tax-advantaged REIT structure.

Richard Acosta, I-REIT's CEO, commented, "I-REIT has the distinct
opportunity to shape the real estate capital markets at a time that the
cannabis industry's momentum is undeniable. I-REIT will greatly benefit
from Inception's robust deal pipeline and informational edge in
identifying strategically located assets, helping us drive value for
both operators and our investors." Highlighting I-REIT's investment
strategy, Acosta, most recently CFO of SBE (SLS Hotels) and formerly a
Director at global real estate private equity firm Colony Capital,
further stated: "We are applying a value-oriented approach to real
estate investing and institutional underwriting practices to a
capital-starved industry."

I-REIT has secured commitments from several prominent real estate
investors and executives, and intends to raise up to $50 million from
institutional and individual accredited investors during its initial

The offering will be conducted in reliance on an exemption from the
registration requirements of the Securities Act. This is not a
solicitation or an offer to buy or sell any security. No money or other
consideration is being solicited at this time, and if sent in response,
will not be accepted. For more information, please visit I-REIT's website,
and LinkedIn.

About Inception REIT

("I-REIT"), the first real estate investment trust (REIT)
formed by an industry-leading investment firm, provides real estate debt
and equity capital solutions to the medicinal and adult-use cannabis
industry. I-REIT is sponsored by The Inception Companies ("Inception"),
a private opportunistic investment firm based in Los Angeles and London
with significant operating and investing experience across numerous
industries, including the regulated cannabis industry. I-REIT will focus
on originating, acquiring, financing, and managing a diversified
portfolio of commercial real estate loans and net leased properties in
the cannabis industry. I-REIT's principals combine real estate, finance
and cannabis expertise, having raised, invested, or managed over $13
billion in real estate and growth equity investments across various
industries with prominent investment firms including Goldman
(NYSE:GS), The
Yucaipa Companies
and Colony
(NYSE:CLNY). I-REIT neither owns, nor does it intend to
own, a financial interest in cannabis businesses. For additional
information, visit

About The Inception Companies

The Inception Companies ("Inception") is a private opportunistic
investment firm based in Los Angeles and London with significant
operating and investing experience across numerous industries, including
regulated cannabis. Inception and its affiliates have deployed capital
in leading consumer retail brands, agricultural & industrial operations,
technology platforms, and real estate assets representing over
$2 billion in aggregate enterprise value. Inception's principals have
over 60 years of combined investing and operating experience at
prominent investment banking, private equity, real estate, and venture
capital firms. For additional information, visit

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