Vertically integrated Michigan cannabis operator Fluresh announced $25 million in new debt from an unspecified “federally regulated commercial bank headquartered in southeast Michigan,” alongside a $23 million debt refinancing from the same lender.
The $25 million senior secured note bears a 5.75% annual interest rate, matures in December 2024 and is secured by Fluresh property in Adrian, Michigan, according to a news release.
Proceeds have been used “to retire (Fluresh’s) existing private placement debt, as well as to pay fees and expenses associated with the transaction,” the company noted in the release.
The $23 million debt refinancing is for Fluresh’s property in Grand Rapids, which is “owned by a real estate development company managed by two of Fluresh’s founders.”
Fluresh claimed that the “combined loans from an FDIC insured bank are potentially the largest ever given to any marijuana related business, with one of the lowest interest rates recorded for a loan of this nature”
Grand Rapids-based Fluresh operates two cultivation facilities and one dispensary.
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Democratic lawmakers have been pushing for marijuana banking reform that would help give state-legal marijuana businesses better access to loans and other banking services without exposing the financial institutions to risk of federal reprisal.
Meanwhile, the number of banks and credit unions serving state-legal marijuana businesses has increased over the course of the pandemic.