Acreage Holdings (CSE: ACRG.A.u, ACRG.B.u) has returned to the trough for further capital. The company announced this morning that it has received initial commitments and funding for a “first advance” of $28 million in via a senior secured term loan facility.
The financing, which is being conducted via a syndicate of lenders, will see an annual interest rate of 15%, with the debt having a maturity of four years from the date of closing. In connection with the offering, the company issued 1,556,929 Class E purchase warrants with an exercise price of US$3.15, and 697,666 Class D purchase warrants with an exercise price of US$3.01.
All warrants issued in connection with the offering have an expiry of four years from the date of issue.
Proceeds from the funding will be utilized for capital expenditures as well as for general corporate purposes. Details were not provided in regards to what assets will be provided as security for the loan.
Acreage Holdings last traded at $3.38 under symbol ACRG.A.u 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.
