Cannabis REIT: Aventine Property Group Raises $100M In Sales Of Convertible Notes To A Single Investor

Cannabis-focused real estate investment trust Aventine Property Group, Inc. confirmed Monday it had raised $100 million via a private offering of 8% senior unsecured convertible notes. The notes, due in 2026, were sold to a single institutional investor.

The Chicago, Illinois-based company plans to use the collected net proceeds from the offering to fund purchases and advances of licensed cannabis real estate assets, such as dispensaries, cultivation and manufacturing facilities across the U.S.

Under the offering, the notes are set to mature in July 2026 unless otherwise converted, redeemed or repurchased. In the course of Aventine going public, the notes will bindingly convert into common stock at the time of such offering. Interest on the notes is set to be paid twice annually – on June 15 and December 15 of each year.

“This capital raise is a transformative step for Aventine that validates our spin-off at the beginning of this year,” said Raymond Lewis, president and CEO of Aventine. “With this investment from a large and respected institutional investor, we look forward to significantly growing the Company by executing on our robust pipeline of accretive investment opportunities. With over $105 million of cash on our balance sheet, we are well-positioned to expand relationships with our existing operators and partner with new operators in the rapidly growing and highly fragmented U.S. cannabis market.”

Aventine currently owns nine retail dispensaries, cultivation and production facilities leased to six cannabis operators across seven states.

Piper Sandler & Co. acted as financial advisor to Aventine, while Morrison & Forester LLP took the role of a legal counsel for the offering. 

Photo: Courtesy of Mackenzie Marco on Unsplash