Marijuana firm Acreage gets $15 million loan at 60% interest rate

(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.

Acreage put up as collateral its marijuana business facilities in Florida, Illinois and New Jersey as well as its intellectual property.

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.

The company has also been selling off unprofitable assets, furloughed 122 employees in April and recently exited the Iowa medical cannabis market.

Acreage trades on the Canadian Securities Exchange as ACRG.U and on the U.S. over-the-counter markets as ACRGF.