Acreage Ensures $12M Loan To Expand Illinois Facility
Acreage Holdings Inc. (OTCQX:ACRHF) revealed it is getting a $12 million construction financing loan to support the development of its cultivation and processing facility in Illinois.
The loan, which will be provided by a cannabis-oriented real estate investment trust, The Pelorus Fund, carries an interest rate of 16% per year, over the course of 18 months.
Ney York City-based cannabis company said it plans to use the proceeds to completely build out the current 80,000 square foot facility, projecting to finalize the construction works during the second quarter of 2021.
The build-out should boost Acreage’s production, enable it to sell more of its own products, both via dispensaries and wholesale channels.
Once completed, the facility will be used for the manufacture of dried flower and oil extract goods, and also THC-infused beverages relying on intellectual property acquired from Canopy Growth Corporation (NASDAQ:CGC).
Acreage already announced it should start with the sales of Canopy Growth’s THC-infused beverages in Illinois and California in the summer of 2021.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.