Acreage Secures $150M In Financing Via Senior Secured Credit Facility With AFC Gamma & Viridescent Realty Trust

Vertically integrated cannabis company Acreage Holdings, Inc. ACRDF announced Thursday that it has secured a $150 million credit facility with cannabis real estate investment trust AFC Gamma, Inc. AFCG and Viridescent Realty Trust, Inc.  

Pursuant to the terms of the credit facility, the New York-based company can immediately use $100 million, while a further $50 million is available in future periods under a committed accordion option once certain, predetermined milestones are achieved.

Acreage disclosed that it plans to utilize the proceeds to fund expansion initiatives, repay existing debt and provide additional working capital.

Steve Goertz, Acreage's CFO, explained that "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."

The credit facility, which will bear interest at 9.75% per annum, will be payable monthly in arrears with a maturity date of January 1, 2026.

In addition, AFC Gamma has committed $60 million - with an additional $10 million syndicated to an affiliate - of the $100 million available for immediate use under the credit facility and $30 million will be held by co-agent Viridescent.

AFC Gamma's CEO Leonard M. Tannenbaum said he is "impressed" with Acreage's management team's efforts to bolster the company's balance sheet.

"With the divesture of their non-performing assets, and their footprint in very attractive limited license states, including their recent entry into Ohio, we are very excited for the opportunity ahead for Acreage and look forward to working with them in 2022 and beyond," Tannenbaum added.

Rob Holmes, Viridescent's CEO, shares Tannenbaum's enthusiasm.

"We believe that Acreage is extremely well-positioned with their current operational footprint, and we look forward to strengthening our partnership as they continue to grow their presence in this rapidly evolving industry," Holmes stated.

Related News

Acreage Holdings: Significant Arbitrage Opportunity If US Legalizes Says Analyst

Acreage Reveals 52% YoY Increase In Q3 Revenue, 'Refreshed Strategy' Yields Results, CEO Says

Cannabis REIT AFC Gamma Reports 276% Net Income Growth Reaching $7.9M In Q2

AFC Gamma Raises $100M Via Senior Note Offering To Support Cannabis Businesses

ACRDF Price Action: Acreage's shares traded 8.08% higher at $1.07 per share at market close on Thursday.

AFCG Price Action: AFC Gamma's shares traded 1.45% higher at $21 per share during the pre-market session on Friday morning.

Photo: Courtesy of John Guccione www.advergroup.com from Pexels