Cresco Labs, a multistate cannabis operator based in Chicago, said it has secured up to $200 million in debt funding from a syndicate of lenders.
The money is earmarked to:
- Expand operations in Illinois, where it’s based.
- Finance pending acquisitions
- Fund other growth initiatives.
The company expects to draw down up to an initial $100 million of the total by the end of January.
The remaining maximum of $100 million will be a mutually agreed-upon figure with the lenders.
The debt financing was secured with a number of investors, including institutional lenders as well as members of the management team at Cresco and its board.
The interest rate for the initial amount of up to $100 million is roughly 12.7% to 13.2%, depending on payback terms.
While capital is in short supply in the marijuana industry, Cresco’s deal shows that well-run cannabis companies can still access money.
Cresco’s move follows that of another multistate operator, Massachusetts-based Curaleaf, which last week closed up to a $300 million debt offering.
Cresco trades on the Canadian Securities Exchange as CL.
– Nick Thomas
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