Massachusetts-based Tilt Holdings said Friday that its Jupiter Research vape cartridge subsidiary has signed a $10 million credit facility that will boost the cannabis tech firm’s capital for operations and growth.
Money borrowed under the new revolving credit line will be at the prime interest rate – currently 3.25% – plus 3.5%. The credit line will be secured by Jupiter’s inventory, accounts receivable and related property, the company said in a news release.
The credit facility is with New York-based Entrepreneur Growth Capital.
“Signing this new credit facility marks a first step in establishing a more normalized capital structure,” Tilt CEO Gary Santo said in a statement.
The terms are favorable for a cannabis company, he added, and “provides us with additional working capital to execute our growth initiatives.”
Santo, formerly Tilt’s president, was installed as CEO on June 1 and his predecessor, Mark Scatterday, became board chair.
Scatterday is working closely with Santo and the senior management team as well as serving as an adviser to the company’s research and development team.