Acreage Holdings Announces Loan Bearing 60% Interest Per Annum

It appears that Acreage Holdings (CSE: ACRG.u) is tight for money in a major way. The company announced this morning that it has entered a loan for short term funding at an astounding interest rate of 60% per annum, in addition to a massive fee in the event of default.

The loan in question is for total gross proceeds of $15.0 million, with the loan being for a period of four months. Funding comes from an undisclosed institiutional investor, at a mind boggling rate of 60% per annum in interest – a figure worse than some loan shark rates even. If that wasn’t enough, the short term loan is secured by the firms cannabis operations in Illinois, New Jersey, and Florida as well as all of the firms US intellectual property.

In the event of default, a fee of $6.0 million will also be applied to the debt – roughly a 40% fee on the value of the principal. On the bright side, Acreage can prepay the note without penalty or premium after 90 days post closing.

And what is this extremely expensive funding being used for? You guessed it, working capital and general corporate purposes.

Acreage Holdings last traded at US$3.06 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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

US Cannabis: Earnings Preview For The Oncoming Fourth Quarter Results

March is turning out to be a busy month in public cannabis, with many of...

Monday, March 8, 2021, 04:10:00 PM

Weld Departs Acreage Holdings Board To Focus On Long Shot Republican Nomination

In perhaps what is one of the oddest executive departures within the cannabis sector as...

Saturday, February 15, 2020, 04:04:44 PM

Acreage Holdings Sells Florida Ops To Red White & Bloom For $60.0 Million

Acreage Holdings (CSE: ACRG.A.u) has sold its Florida operations. The company this morning announced in...

Thursday, February 25, 2021, 07:11:00 AM

Acreage Holdings Reports to Sedar, Pretty Far from Pre-Public Guidance

After the bell Acreage Holdings (CSE: ACGR.u) released their financial statements on Sedar. They previously...

Friday, November 22, 2019, 08:27:00 PM

Acreage Holdings Reports Declining Revenues Of $31.5 Million, Net Loss Of $45.5 For Q4 2020

Acreage Holdings (CSE: ACRG.a, ACRG.b) this evening issued a press release outlining its financial results...

Tuesday, March 9, 2021, 06:00:00 PM