Real estate lenders AFC Gamma and Viridescent Realty Trust have teamed up to lend $100 million to multistate cannabis operator Acreage Holdings, with an option to lend a further $50 million.
New York-based Acreage will use the senior secured credit facility “to fund expansion initiatives, repay existing debt and provide additional working capital,” according to a news release.
The initial $100 million credit facility includes $60 million from Florida-based AFC Gamma, $10 million from an unspecified affiliate and $30 million from Texas-based Viridescent.
It carries a 9.75% annual interest rate, payable monthly. The credit facility has a maturity date of January 2026.
The loan is secured by Acreage’s real estate “and other commercial security interests.”
The additional $50 million credit facility will be available once unspecified milestones are achieved.
“This transaction represents another strategic step in our efforts to drive profitability, strengthen our balance sheet and accelerate our growth in our core markets which will ultimately maximize shareholder value,” said Acreage CFO Steve Goertz in a statement.
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Acreage also said it amended the terms of a $33 million credit facility announced in September 2020.
AFC Gamma trades on the Nasdaq.