Chicago-based marijuana multistate operator Verano Holdings Corp. said Wednesday it amended an existing credit agreement to secure an additional $120 million in funding at a lower annual interest rate of 8.5%.
The loan brings the total outstanding senior secured term loans under the credit facility to $250 million.
The latest funding comes with the option for an additional $100 million.
The 8.5% interest rate on the new loan is below the 9.75% annual rate Verano secured for its previous upsized credit facility announced in May.
Chicago Atlantic Advisors and AFC Gamma provided the funding for the latest tranche, according to a news release.
Subscribe to the MJBiz Factbook
Exclusive industry data and analysis to help you make informed business decisions and avoid costly missteps. All the facts, none of the hype.
What you will get:
- Monthly and quarterly updates, with new data & insights
- Financial forecasts + capital investment trends
- State-by-state guide to regulations, taxes & market opportunities
- Annual survey of cannabis businesses
- Consumer insights
- And more!
“This transaction dovetails with our short- and long-term objectives to remain acquisitive and expand the Verano platform in both new and existing markets,” Verano CEO George Archos said in the release.
In November 2020, Verano acquired Florida-based Altmed for an undisclosed sum and now holds cannabis business interests in 14 states.
Verano trades on the Canadian Securities Exchange as VRNO and on the over-the-counter markets as VRNOF.