Acreage Holdings officials said the multi-state operator of domestic cannabis cultivation and retail facilities has secured a $150 million credit facility with AFC Gamma and Viridescent Realty Trust.
Authorities indicated Acreage Holdings outlined $100 million would be available for immediate use while the remaining $50 million would be earmarked in the future periods via a committed accordion option once varied predetermined milestones are achieved.
Credit facility proceeds are slated to fund expansion initiatives, repay existing debt and provide additional working capital, per Acreage Holdings, which, according to its Leadership Team page, includes former Speaker of the U.S. House of Representatives from 2011-2015 John Boehner and former Prime Minister of Canada from 1984 to 1993 Brian Mulroney – senior partner and international business consultant for Norton Rose Fulbright – among its Board of Directors.
“This financing is a strong recognition of the significant work our team has done over the last year to position Acreage for both long-term success and as a leader in our industry,”
Acreage Chief Financial Officer Steve Goertz said. “This non-dilutive source of capital further enhances our balance sheet and provides us with increased financial flexibility as we continue to focus on driving profitability and accelerating growth in our core markets to ultimately maximize shareholder value. We are pleased to be working with AFC Gamma and Viridescent and look forward to furthering our partnership as we continue to strengthen our operations.”
AFC Gamma’s Chief Executive Officer Leonard M. Tannenbaum said the firm is impressed with Acreage Holdings’ management team efforts to improve its balance sheet.
“With the divesture of their non-performing assets and their footprint in very attractive limited license states, we are very excited for the opportunity ahead for Acreage and look forward to working with them in 2022 and beyond,” he said.