Continuing what appears to be the trend of the week, Acreage Holdings (CSE: ACRG.A.U) last night announced that it has secured up to $150 million in credit facilities. The debt comes in the form of an initial $100 million, with up to $50 million in additional funds available once certain milestones are hit.
The debt financing comes from AFC Gamma as well as Viridescent Realty Trust, the latter of which Acreage’s CEO Kevin Murphy is President and Chairman of. $60 million will be provided immediately by AFC Gamma, with a further $10 million provided by an affiliate of AFC. The remaining $30 million of the initial $100 million facility is to be held by Viridescent.
The debt is to bear interest at a rate of 9.75% per annum, which is payable monthly, and contains a maturity date of January 1, 2026. The facility is secured by first lien mortgages on all of the firms real estate.
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Acreage has indicated that funding from the credit facility will be used to repay existing debt, for working capital, and to fund expansion.
Finally, the company has also amended the terms of an outstanding $33 million credit facility, which has seen its maturity extended from September 2023 to April 2026.
Acreage Holdings last traded at US$1.59 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. 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.
