Acreage Gets $28M In Funds Under Senior Secured Term Loan Facility

Multi-state cannabis operator Acreage Holdings, Inc. ACRHFACRDF) has obtained first funding from a group of lenders for a “first advance” of $28 million under a Senior Secured Term Loan Facility.

Seaport Global Securities LLC is named the only placement agent for the Facility.

Under the agreement, the company has issued the lenders a total of 1.56 million Fixed Share Warrants with each warrant being exercisable for one class E subordinate voting share and 697,666 Floating Share Warrants with each warrant exercisable for one class D subordinate voting shares.

One Fixed Share Warrant carries an exercise price of $3.15, while the Floating Share Warrant is worth $3.01, both being exercisable for four years.

Acreage noted Tuesday that the facility bears yearly interest rate of 15% with 48 months of maturity upon completing.

According to the New York-based cannabis company, these proceeds will be used to support capital payments and general corporate purposes.