Aventine Property Group Completes $100 Million Private Offering of Senior Unsecured Convertible NotesPosted by On

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CHICAGO–()–Aventine Property Group, Inc. (“Aventine” or the “Company“), one of the largest internally managed REITs serving the legal adult- and medical-use cannabis industry, announced today that it has completed a private offering of $100 million aggregate principal amount of 8.00% senior unsecured convertible notes due 2026 (the “Notes”). The Notes were sold to a well-respected, large institutional investor. The net proceeds from the offering will primarily be used to acquire and develop licensed cannabis real estate assets, including both retail dispensaries and specialized industrial cultivation and production facilities, throughout the United States.

The Notes will mature in July 2026, unless otherwise repurchased, redeemed, or converted. Upon an initial public offering of the Company’s common stock, the Notes will mandatorily convert into common stock at the time of such offering. Interest on the Notes is payable semiannually on June 15 and December 15 of each year.

“This capital raise is a transformative step for Aventine that validates our spin-off at the beginning of this year,” said Raymond Lewis, President and Chief Executive Officer of Aventine. “With this investment from a large and respected institutional investor, we look forward to significantly growing the Company by executing on our robust pipeline of accretive investment opportunities. With over $105 million of cash on our balance sheet, we are well-positioned to expand relationships with our existing operators and partner with new operators in the rapidly growing and highly fragmented U.S. cannabis market.”

Piper Sandler & Co. served as financial advisor to Aventine and Morrison & Forester LLP served as legal counsel.

The issuance of the Notes was not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were offered and sold in reliance on an exemption from registration provided by Rule 506(c) of Regulation D and Section 4(a)(2) of the Securities Act. The Securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Aventine

Aventine is a privately held, internally managed real estate investment trust (REIT) serving the regulated adult- and medical-use cannabis industry. The Company owns nine retail dispensaries and specialized industrial cultivation and production facilities leased to six leading operators, geographically diversified across seven states. For more information about Aventine, please visit www.aventinereit.com.

Forward-looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the anticipated use of the net proceeds from the offering. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Aventine can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Issuer’s expectations include, but are not limited to, the continued impact of the COVID-19 pandemic, which remains inherently uncertain as to duration and severity, and any additional governmental measures taken to limit its spread and other potential future outbreaks of infectious diseases or other health concerns; applicable regulatory changes; general volatility of the capital markets; changes in the Aventine’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Issuer’s assets; and the degree and nature of competition, including competition for Aventine’s target assets. Such forward-looking statements speak only as of the date of this press release. Aventine expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aventine’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

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