Multistate marijuana operator Cansortium nets $71 million of capital

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Miami-based marijuana company Cansortium, which operates the Fluent brand, raised $71 million of capital in debt financing for financial liquidity and market expansion.

The four-year senior secured loan will bear a 13% annual interest rate. A $50 million tranche of the loan includes a lower interest rate but warrants that the lenders can exercise into stock at a specified price.

Subject to certain conditions, Cansortium can increase the $71 million loan by up to $20 million.

“Today marks a new beginning for Cansortium as we now have the financial flexibility and liquidity that the company needs to continue growing its attractive asset base,” company CEO Robert Beasley said in a statement.

He said the proceeds have been used to repay $27 million of convertible debt due in May and also will support expansion in the company’s core markets of Florida, Michigan and Pennsylvania.

Cansortium has the sixth-largest footprint in Florida with 24 medical marijuana dispensaries.