Vertically built-in marijuana firm Cansortium has secured a senior credit score settlement for as much as $96.5 million.
The Tampa, Florida-based firm, which operates beneath the Fluent model, additionally paid off a $23 million mortgage – plus 13% accrued curiosity – from Chicago-headquartered multistate operator Inexperienced Thumb Industries, in keeping with a Tuesday information launch.
The credit score settlement with Chicago Atlantic, which has a 12% money rate of interest and 1% paid-in-kind curiosity yearly, refinances Cansortium’s current $71 million senior secured time period mortgage that was set to mature Could 29, 2025, a Wednesday information launch famous.
“The mortgage’s favorable rate of interest and single monetary covenant underscore our sturdy monetary standing, whereas its nondilutive construction – freed from fairness or warrants – preserves shareholder worth,” Cansortium CEO Robert Beasley stated in an announcement.
“On account of this transaction, we now have no materials debt maturities till late 2028.”
The refinancing contains entry to 2 extra credit score traces totaling $25 million.
These credit score traces, mixed with the money steadiness from Cansortium’s impending merger with RIV Capital, positions the corporate to enter 2025 with a strong conflict chest, Beasley stated.
Cansortium’s merger with Toronto-headquartered RIV Capital is anticipated to shut in early December, in keeping with the Tuesday launch.
“These assets will enable us to pursue strategic acquisitions and development initiatives in key markets like Pennsylvania and New York whereas additionally concentrating on new alternatives in rising high-growth states,” Beasley stated.
The credit score settlement requires Cansortium to keep up an unrestricted money steadiness of $4.5 million, examined on the finish of every quarter.
