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.