Cannabis MSO Verano taps $100 million in debt financing to support expansion

Cannabis multistate operator Verano Holdings said it has drawn an additional $100 million under its existing credit agreement to fund expansion and strategic initiatives.

The announcement comes only a few weeks after the Chicago-based MSO signed a definitive agreement to acquire Goodness Growth Holdings for roughly $413 million.

The prized asset in that acquisition is a vertical medical marijuana business in New York, one of only 10 licensed operations in the state.

New York also is preparing to launch a multibillion-dollar recreational marijuana industry.

Verano said the additional funding is at an annual interest rate of 8.5%, which is favorable by industry standards.

The latest amendment to the company’s credit agreement includes an option for an additional $175 million of funding, according to a news release.

Chicago Atlantic Advisors, an asset management company, is the lead administrative agent on the deal, with participation from AFC Gamma, a cannabis real estate finance company.

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Verano’s agreement to acquire Minneapolis-based Goodness Growth also includes cannabis operations in Arizona, Maryland, Minnesota and New Mexico.

When the acquisition is completed, Verano’s operational footprint will span 15 states and include 1.3 million square feet of cultivation capacity and more than 110 retail outlets.