Grown Rogue leases cultivation plant in Minnesota

Executive Summary

• Grown Rogue International Inc. has secured a long-term lease for a 109,000-square-foot cultivation facility in Fridley, Minnesota, which has received local approval for cannabis cultivation.
• The company plans a phased buildout starting with 10,000 square feet of flowering canopy in early 2026, with first product anticipated in early 2027, scaling up to the state maximum of 30,000 square feet.
• Definitive agreements, including a sublease and management services agreement with license holder Christian Stiers, were executed on December 5, 2025.

Key Details

• Facility Specifications: Approximately 109,000-square-foot building located in Fridley, Minnesota (greater Minneapolis metropolitan area).
• Lease Terms:
  • Monthly base rent: 73 cents per square foot.
  • Landlord acquisition cost: Approximately $75 per square foot.
  • Tenant improvements: Majority funded from Grown Rogue’s balance sheet to maintain low-cost production structure.
• Operational Plan:
  • Phase I: Commencing early 2026, comprising approximately 10,000 square feet of flowering canopy and associated support infrastructure.
  • Target Capacity: Up to 30,000 square feet of flower canopy (maximum indoor flower canopy permitted in Minnesota).
  • Production Timeline: First product anticipated in early 2027.
• Regulatory Status: The facility has secured a conditional-use permit for cannabis cultivation.
• Strategic Agreements:
  • Executed definitive agreements with Christian Stiers (Grown Rogue's national cultivation director) governing interests in the Minnesota project.
  • Includes a sublease of the cultivation facility and a management services agreement (subject to regulatory approval).
  • All agreements executed on December 5, 2025.
• Market Strategy: The location is positioned to serve adult-use customers across the Minneapolis region, with potential for future subtenants as regulations allow. The company aims to leverage prior experience with Vireo Growth in the Minnesota market.

Notable Quotes

• Obie Strickler, CEO of Grown Rogue: "We are pleased to have secured a building at an affordable rate, with ample power, that gives us the flexibility to expand to the current maximum allowed flower canopy in Minnesota of 30,000 square feet. We are highly conscious of our long-term occupancy costs, and, between the structure of the lease and our decision to fund the majority of tenant improvements from our balance sheet, we are confident we can be a low-cost producer of craft-quality cannabis for Minnesota customers."
• Obie Strickler, CEO of Grown Rogue: "Consistent with the Grown Rogue way, we expect to develop the facility in phases that align balance sheet risk with demonstrated sell-through... the natural optionality to scale up to approximately 30,000 square feet of flower canopy, approximately double the flower canopy in our existing markets, gives us a more aggressive upside path in Minnesota if market conditions support it."
• Josh Rosen, Chief Strategy Officer of Grown Rogue: "Securing this location on favourable terms is the first tangible milestone for the Minnesota project that we are pursuing in collaboration with the licence holder, Christian Stiers... We believe this metropolitan Minneapolis location positions us not only to serve adult-use customers across the region but also to eventually accommodate complementary subtenants as the market expands and regulations allow."