Green Thumb Industries Inc. GTII GTBIF, the owner of Rise dispensaries, has raised $217 million to retire its existing $105-million senior secured debt due May 2023.
The Chicago-based company said Friday that it has finalized a senior non-brokered private placement financing via the issuance of senior secured notes.
The notes, which will mature on April 30, 2024, carry an interest of 7% on a yearly basis and are payable quarterly.
In addition, the financing allows GTI to lend an additional $33 million over the next 12 months.
Buyers of the notes obtained a total of 1,459,043 warrants, each allowing the purchase of one subordinate voting share of GTI at $32.68 per share in 60 months following the issuance.
"This financing represents the industry-leading cost of capital in the legal cannabis industry and strengthens our balance sheet," GTI Founder and CEO Ben Kovler said in a statement.
The move also enables the company to shift focus on the building of shareholder value "through strategic investments to scale our existing operations in addition to accretive M&A opportunities," Kovler added.
GTI was recently granted local financial incentives to build a cannabis cultivation and manufacturing facility at the Warwick Valley Office and Technology Corporate Park in New York.
The incentives — coming from Orange County, New York's Industrial Development Agency — include "sales and use tax exemption, mortgage recording tax exemption, a 15-year property tax abatement and the issuance of taxable revenue bonds," according to the report.
Photo by Esteban Lopez on Unsplash.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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