Really good news – we have signed a Letter of Intent (LOI) to lease the San Leandro property (2085 Burroughs Ave). But before, you get too excited, we still have some major hurdles to get over.

In our last report, we stated we had agreed terms and was waiting for the owner’s review of our financials. Well, that did not result in the outcome we expected. The owner expressed concerns and then insisted on some changes to the terms. So, of course we went back and forth a few times, but finally agreed to a set of terms that are now reflected in the LOI.

However, those terms include a provision that we prepay the first year of rent, which is a significant amount of money, over $200,000. During our negotiations, we were approached by a member who indicated that they might be able to enable us getting a short term loan. Based on this opportunity, we elected to go ahead and agree to the prepaid rent.

We are now working on solving for the funds needed for the prepaid rent. We are also working on updating the business plan with the specifics of the Burroughs Ave location and conducting an initial review of our building plans with the city of San Leandro.

We plan on giving a more detailed update at Monday’s Board & Annual General Meeting. Hope to see you there!

Leave a Reply