Acreage Secures $15M In Financing

Cannabis company Acreage Holdings Inc. ACRG ACRGF has secured $15 million in financing.

The news comes less than a month after the New York-based company announced it anticipated a write-down of up to $100 million for the first three months of fiscal 2020.

According to its latest press release, Acreage entered into a short-term funding deal with an undisclosed investor. The loan will last four months, carrying an interest rate of 60% annually.

In addition, the secured note is secured by Acreage's Illinois, New Jersey, and Florida-based operations, as well as its U.S. intellectual property.

The deal binds Acreage to pay to the lender an additional $6 million in the case of default.

The company said it would utilize the proceeds to fund general corporate expenses.

In May, Acreage sold an undeveloped real estate location in Nantucket, Rhode Island, and a dispensary in Fargo, North Dakota, to stimulate margin improvements and reach positive EBITDA in 2020.

During the coronavirus outbreak, the company nixed merger deal with Deep Roots Medical LLC and introduced a set of operational changes, including workforce reduction and halting of Iowa's wholesale activities.