Acreage Announces Funding For Illinois Cultivation Expansion
Acreage Holdings (CSE: ACRG.u) continues to see a high cost of capital, this morning announcing that it has entered into an arrangement to borrow money at an interest rate of 16% per annum over a term of 18 months. The financing is to be used to fund the expansion of its cultivation and processing facility located in Illinois.
The company has indicated that it will be borrowing “approximately” US$12 million to fund the expansion of the facility, with proceeds being used to full build out the 80,000 square foot cultivation and processing operation. Completion has currently been pegged for the second quarter of 2021, with the expansion to enable the company to sell more of its own products within the state, furthering its vertical integration.
The working theory for Acreage is that the expansion will “lead to improved financial performance in the state.” The expanded product offerings are to consist of dried flower and oil extracts, with the company highlighting the intention to produce THC-infused beverages using IP licensed from Canadian partner Canopy Growth. The infused beverages have been slated for a launch in Illinois, as well as California, in summer 2021.
Acreage Holdings last traded at $3.98 on the CSE.
Information for this briefing was found via Sedar and Acreage Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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