Cannabis MSO Green Thumb raises $217 million in debt at 7% interest rate

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Multistate cannabis operator Green Thumb Industries raised $217 million worth of funding by issuing senior secured debt at an interest rate the company described as “industry-leading.”

Chicago-based Green Thumb said it would use the new funding to retire $105 million of existing senior secured debt and “for general working capital purposes as well as various growth initiatives.”

The new debt matures April 30, 2024, and bears interest at 7% per year, payable quarterly.

Green Thumb has the option to extend the debt for an additional year and can also borrow $33 million more over the next year.

Purchasers of the new debt include some unspecified company insiders who spent roughly $3 million. They received 1,459,043 warrants to purchase subordinate voting shares of Green Thumb at $32.68 per share for five years.

“This financing represents industry-leading cost of capital in the legal cannabis industry and strengthens our balance sheet,” Green Thumb CEO Ben Kovler said in a Friday news release.

“This new capital will allow us to focus on shareholder value creation through strategic investments to scale our existing operations in addition to accretive (merger and acquisition) opportunities.”

Green Thumb shares trade on the Canadian Securities Exchange as GTII and on U.S. over-the-counter markets as GTBIF.