Massachusetts-based multistate marijuana company Curaleaf Holdings is borrowing $50 million by way of a three-year secured revolving credit facility.
The loan, announced Monday, will “be used to fund capital expenditures to support future growth initiatives, potential acquisitions, and for general corporate purposes,” Curaleaf said in a news release.
The loan carries an interest rate of 10.25% and was fully drawn at closing, Curaleaf said. It matures on Jan. 10, 2024.
Curaleaf CEO Joseph Bayern said the funding would give “additional financial flexibility to our capital structure as well as the opportunity to create future value at a more favorable cost of capital.”
In addition, Bayern noted that Curaleaf would continue to capitalize on the “rapidly expanding market for U.S. medical and adult-use cannabis, particularly in light of the recent election results and their expected impact on the sector” – an apparent reference to legalization victories in the November election as well as last week’s Democratic wins in Georgia’s two Senate runoffs.
Last week, Curaleaf priced a share offering to raise roughly $217 million.