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Harvest Health & Recreation To Borrow Up To $225M For Strategic Acquisitions

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Harvest Health & Recreation To Borrow Up To $225M For Strategic Acquisitions
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Vertically integrated cannabis company Harvest Health & Recreation Inc (OTC: HRVSF) said Wednesday it has entered into a term sheet for a secured term loan of as much as $225 million from an investment fund operated by Torian Capital Partners.

Harvest will obtain the money in three tranches of $75 million, each carrying the same terms and an 8% annual interest rate. The first one is expected to close within one month, the company said. 

The financing will be in the form of secured notes, and the proceeds will be used for strategic acquisitions, general corporate purposes and working capital, according to Harvest.

The loan is secured by Harvest assets, including cannabis licenses. 

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“Harvest is in a strong financial position in the cannabis industry and this growth capital, which we believe is provided at an attractive financing cost, will enable us to deliver on our commitment to enhance shareholder value,” CEO Steve White said in a statement.

"This transaction positions us well for the strategic acquisition of assets across the cannabis supply chain. With greater financial flexibility, we are better equipped to execute our strategy to aggressively expand our retail and wholesale footprint across the U.S. into key markets, while seeking to build and acquire brands for broad distribution."

Harvest shares were trading higher by 5.2% at $5.46 at the time of publication Wednesday. 

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Posted-In: marijuana pot Torian Capital Partners weedCannabis News Financing Markets

 

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