Jushi Holdings (CSE: JUSH) is the latest multi state cannabis operator to get further funding this week. The company this morning reported that it has entered into a definitive arrangement for a US$100 million senior secured credit facility.
The facility itself comes from SunStream Bancorp, which is a joint venture that is sponsored by Sundial Growers (NASDAQ: SNDL), presumably as a means for the company to gain exposure to the US cannabis space. The facility is referred to as an “acquisition facility,” meaning it is to be used to acquire further operators in the US.
The facility currently bears interest at a rate of 9.5% per annum, payable quarterly, with the first two years said to contain interest-only payments. The debt matures five years from closing date, with the company able to make drawdowns on the facility for the first eighteen months. Lastly, the total size of the credit facility is eligible to be increased by US$25 million based upon certain undisclosed conditions.
To date, Jushi has reportedly drawn down $40 million, which is being used to satisfy the cash portion of its recent acquisition of Nature’s Remedy of Massachusetts. The remaining funds, if used, are to be used for “strategic expansion opportunities” in both core and developing markets that the company operates within.
The investment is believed to be one of the first made under the Sunstream Bancorp banner by Sundial Growers.
Jushi Holdings last traded at $4.84 on the CSE.
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