Cannabis company Acreage Holdings, Inc. ACRG ACRGF said Friday it has signed multiple financing agreements.
Those include a $100-million credit facility with an institutional lender; a $50-million private loan transaction to support cash collateral for the credit facility; and a $30-million private placement of special warrants, with an option to attain an extra $20 million in special warrants.
The transactions are meeting the company's near-term capital demands, with gross proceeds of around $79 million.
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“In a time of limited capital availability for our industry, I am excited to announce these proposed transactions to strengthen our balance sheet, further enabling us to execute our plan to be a leading consumer cannabis company in the U.S.,” Kevin Murphy, Acreage's chairman and CEO, said in a statement.
“In the course of these transactions, we have cemented a relationship with a well-capitalized institutional lender that has the capacity to provide additional credit facilities as necessary.”
Acreage shares were down 4.16% at $5.30 at the time of publication Monday.
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