Marijuana MSO MariMed borrows up to $35 million for expansion, more

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


Marijuana multistate operator MariMed closed a $35 million secured credit facility to complete expansion projects in multiple states and pay off notes from a previous acquisition.

Norwood, Massachusetts-based MariMed said Chicago Atlantic Advisors was the lead lender, with participation from Silver Spike Investment Corp.

The credit facility matures in three years but could be extended to five years under unspecified conditions, according to a MariMed news release issued Tuesday night.

The credit facility carries a floating interest rate based on prime plus 5.75%, with 30% warrant coverage.

MariMed said it borrowed $30 million at close and can borrow an additional $5 million over the next six months.

According to the release, “Funds will be used for completing the build-out of a new cultivation and processing facility in Illinois and a new processing kitchen in Missouri, expanding existing cultivation and processing facilities in Massachusetts and Maryland, funding other capital expenditures, and repaying in full the Kind Therapeutics seller notes from the Maryland acquisition in April 2022.”

Any remaining balance will be used for acquisitions.

MariMed can repay the principal balance with no penalty after 20 months.

“This credit facility allows us to significantly accelerate the completion of our expansion projects, which we believe will drive meaningful revenue and EBITDA growth in 2023 and beyond,” MariMed Chief Financial Officer Susan Villare said in a statement.