Marijuana Business Magazine March 2020

By Omar Sacirbey Cresco Nabs $200 Million Debt Deal Cresco Labs , a multistate cannabis operator based in Chicago, secured up to $200million in debt funding from a syndicate of lenders. The money is earmarked for: • Expanding operations in Illinois, which launched legal adult-use sales Jan. 1. • Financing pending acquisitions. • Funding other growth initiatives. The company expected to draw down up to an initial $100 million of the total by the end of January, while the remaining maximum of $100 million will be a mutually agreed-upon figure with the lenders. The debt financing was secured with a number of investors, including institutional lenders as well as members of the management team at Cresco and its board. The interest rate for the initial amount of up to $100 million is roughly 12.7% to 13.2%, depending on payback terms. Acreage Secures $100 Million Debt Funding Acreage Holdings, a New York-based multistate marijuana operator, secured a credit facility of up to $100 million with an institutional lender to bolster the company’s balance sheet and fuel growth. In addition, Acreage agreed to a separate $50 million loan as collateral to the credit facility. Part of that $50 million is funded by Acreage CEO Kevin Murphy. The company, which also announced a warrant transaction totaling up to $50 million, was expected to draw down an initial $49 million of the credit facility in February. New Distribution Partnership for Old Pal Old Pal , a California cannabis brand, announced that Kiva Sales and Service , a distribution operator in the state, will be Old Pal’s exclusive distributor. U.S. DEVELOPMENTS CompanyNews | U.S., Canada & International Recent deals, acquisitions and other announcements from cannabis companies