Marijuana multistate operator Acreage Holdings has secured a $15 million short-term loan with a whopping 60% yearly interest rate, the corporate mentioned Wednesday.
The secured be aware, obtained from a personal investor, matures in 4 months, in accordance with a information launch.
Acreage put up as collateral its marijuana enterprise amenities in Florida, Illinois and New Jersey in addition to its mental property.
Under the phrases of the loan, if Acreage had been to default, it could owe the lender a further $6 million.
The new money infusion will likely be used for “working capital and general corporate purposes,” in accordance with the discharge.
The loan is likely to be an eye-opener for traders watching Acreage’s strikes, because the New York-based firm lately introduced a plan to lift $60 million by promoting fairness to a personal investor and thru debt financing.
The firm has additionally been promoting off unprofitable property, furloughed 122 staff in April and lately exited the Iowa medical hashish market.