Oakland, California-based vertically integrated marijuana firm Harborside closed the first tranche of a $77.3 million debt financing deal.
The move was made in conjunction with the company’s previously announced business combination with San Diego-based retailer Urbn Leaf and Los Angeles-based cultivator, processor and distributor Loudpack.
The first tranche of financing from Pelorus Equity Group is worth $45.4 million, with roughly $15.5 million going to Harborside, $16.4 million to Loudpack and $13.5 million to Urbn Leaf, Harborside announced in a news release.
The California company plans to change its name to StateHouse Holdings when the business combination is complete.
The deals are expected to close in March, subject to shareholder and regulatory approvals and other conditions, Harborside said.
The company used some of the financing to pay off $12 million outstanding under a senior secured revolving credit facility.
“Proceeds from the first tranche of the roll up financing will be used to retire certain existing loans, to fund closing costs and interest reserves, and to provide additional working capital to the three companies,” according to the Harborside release.
“Proceeds from the second tranche will be used primarily for working capital purposes and for growth capital of StateHouse.”
The second tranche of financing from Pelorus will be worth $31.9 million.
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Harborside also announced it was terminating a $10 million private placement of equity units that it announced along with the business combination in November.
Pelorus said in a release that its financing to Harborside carries a nominal interest rate of 10.25%.