NEW YORK, Nov. 03, 2020 (GLOBE NEWSWIRE) -- Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF) today announced it has received initial commitments and funding from a syndicate of lenders (the “Lenders”) for a first advance of $28 million pursuant to a Senior Secured Term Loan Facility (the “Facility”).
The Facility has an annual interest rate of 15% with a maturity of 48 months from closing.
In connection with the advance under the Facility, Acreage issued the Lenders an aggregate of 1,556,929 warrants (the “Fixed Share Warrants”) with each Fixed Share Warrant exercisable for one class E subordinate voting share (each a “Fixed Share”) and 697,666 warrants (the “Floating Share Warrants”) with each Floating Share Warrant exercisable for one class D subordinate voting shares (each a “Floating Share”). The exercise price of each Fixed Share Warrant is US$3.15 and the exercise price of each Floating Share Warrant is US$3.01. The warrants are exercisable for a period of four years.
The proceeds from the Facility will be used to fund capital expenditures and for general corporate purposes. The sole placement agent for the Facility is Seaport Global Securities LLC.
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Headquartered in New York City, Acreage is a multi-state operator of cannabis cultivation and retailing facilities in the U.S., including the company’s national retail store brand, The Botanist. Acreage’s wide range of national and regionally available cannabis products include the award-winning Botanist brand, the highly recognizable Tweed brand, the Prime medical brand in Pennsylvania, the Innocent edibles brand in Illinois and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the U.S. Since its founding in 2011, Acreage has focused on building and scaling operations to create a seamless, consumer-focused, branded experience. More information is available at www.acreageholdings.com.