Curaleaf’s $275 million syndicated loan facility announced Friday shows that capital markets are indeed open for companies with positive EBITDA and specific revenue and profit targets.
At our recent Investor Intelligence Conference, we noted that companies that focus on profitability and simplifying their capital structures and that can articulate specific revenue and profit goals to investors will have a lower cost of capital.
Curaleaf is an example of this. The company has generated positive EBITDA for two quarters now and maintained guidance for $1.0 billion-$1.2 billion of sales at a “north of” 30% EBITDA margin since August 2019.
This funding facility is also a step toward financial normalization for the cannabis industry in general.