(This story has been updated to note the loan came from an unidentified institutional investor.)
Marijuana multistate operator Acreage Holdings has secured a $15 million short-term loan with a whopping 60% yearly interest rate, the company said Wednesday.
The secured note, obtained from an unidentified institutional investor, matures in four months, according to a news release.
Under the terms of the loan, if Acreage were to default, it would owe the lender an additional $6 million.
The new cash infusion will be used for “working capital and general corporate purposes,” according to the release.
The loan might be an eye-opener for investors watching Acreage’s moves, since the New York-based company recently announced a plan to raise $60 million by selling equity to a private investor and through debt financing.