Michigan-based Gage Growth said it raised $55 million of capital through a one-year secured loan to help finance retail acquisitions and growth in the state.
The annual interest rate of the loan is set at the greater of 7% plus the prime lending rate, or 10.25%, according to a news release.
The prime rate currently is 3.25%, meaning the loan is at a 10.25% annual rate, payable monthly.
Gage CEO Fabian Monaco said in the release that the deal, which is secured by a first lien on the company’s assets, provides the company with “maximum flexibility to execute on near-term acquisition opportunities.”
The financing comes as New York- and Toronto-based multistate operator TerrAscend is buying Gage in an all-stock deal initially valued at $545 million.
The $55 million loan was arranged by Canaccord Genuity Corp. and Chicago Atlantic.
Gage has operations in Michigan and Canada.
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The company’s portfolio includes regulatory approvals for 19 cultivation licenses, three processing permits and 15 retail licenses in Michigan, according to a news release.
Gage’s website lists 10 retail outlets in operation in Michigan, with five more coming soon.