Cannabis Company Sells San Bernardino Mining Town

by Placerville Newswire / Apr 01, 2018 / comments

[Cal County News]

Last year, we told you about Nipton, California. The old mining outpost in unincorporated San Bernardino County was purchased by cannabis technology company American Green Inc., which planned to turn it into a commercial marijuana paradise.

Well, so much for that. The Los Angeles Times reports that the company has already sold Nipton to the highest bidder.

"Cannabis technology company American Green Inc., which bought Nipton for $5 million last year, has sold it to another company in a deal worth $7.7 million, acknowledging that it struggled to raise the money needed to remake the old desert mining town on the Nevada border about 60 miles south of Las Vegas into a pot paradise.

"Buying and building towns is very cash intensive. Up until now, the cost of attracting capital has been very expensive for our company," Phoenix-based American Green said in a statement this month.

The new owner of Nipton is Delta International Oil & Gas, based in Scottsdale, AZ. As its name suggests, the company typically buys up land for gas and oil drilling. “However, American Green says the sale includes the provision that it continue with its project to transform the 80-acre town on the edge of the Mojave Desert into a cannabis-themed resort,” the Los Angeles Times reports.

Per the terms of the contract, Delta International will assume $3.7 million of American Green’s debt. American Green will retain $4 million in preferred Delta stock and continue with plans to develop the town for the next 10 years.

Read more here