Verano Holdings (CSE: VRNO) has secured additional funding. The funding comes from an amendment to an existing credit facility, which provides the company access to an additional US$120 million in funds.
With the amendment, the credit facility as a whole has now ballooned to US$250 million. Despite the substantial upsizing of the loan, the interest rate on the new debt is said to be at 8.50%, compared to the 9.75% interest per annum being paid on its previous upsizing.
In addition to the 8.50% interest on the loan, the funding is said to be non-dilutive, and contains an 18 month maturity. Furthermore, the company has the option to secure an additional US$100 million under the credit facility, at substantially the same terms.
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In terms of the use of funds, generic “big idea” uses were provided, including the firms “short- and long-term objectives to remain acquisitive and expand the Verano platform,” which is said to apply to new as well as existing markets. The firm also added the terms “strategic growth” and “continued value creation” to its list of intended fund uses.
Verano Holdings last traded at $13.50 on the CSE.
Information for this briefing was found via Sedar, and Verano 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.
