Multistate cannabis company Vireo Health International closed the first tranche of a senior secured loan worth $23.5 million.
Minneapolis-based Vireo said the loan will be used “to support the company’s ongoing growth initiatives and working capital requirements.”
“This facility allows Vireo to continue pursuing first-mover advantages in markets where we see potential for revenue growth and margin expansion, beginning with incremental expansion projects at our cultivation facilities in Arizona and Maryland planned for the second quarter,” company CEO Dr. Kyle Kingsley noted in a news release issued Friday.
The nonconvertible loan, originally announced in November, carries a three-year term with an aggregate principal amount of up to $46 million.
Also, Vireo on Thursday reported fourth-quarter and full-year earnings for 2020.
The company reported annual revenue of $49.2 million for 2020 and an annual net loss of $22.9 million, compared with nearly $30 million in revenue in 2019 and a net loss of $57.5 million.
Vireo reported $27.1 million worth of cash and restricted cash as of Dec. 31, 2020.
The company did not provide a quantitative profitability outlook for 2021, citing “near-term uncertainties related to the timing and outcome of certain regulatory developments in several of its markets.”
“However, Vireo anticipates growth investments made in fiscal year 2020 and continued execution of its core market strategy will yield organic revenue growth for the foreseeable future,” the company said in an earnings release.
Shares of Vireo trade as VREO on the Canadian Securities Exchange and as VREOF on the U.S. over-the-counter markets.
