Verano Upsizes Its Existing Credit Facility To $250M At 8.50% With Additional $100M Option

Cannabis company Verano Holdings Corp. VRNO VRNOF announced Wednesday that it has entered into an amendment to its existing credit agreement for additional funding of $120 million with an 18-month maturity, bringing the total outstanding senior secured term loans under the credit facility to $250 million.

Based in Chicago, the company said that the incremental credit provides non-dilutive funding of $120 million at an annual interest rate of 8.50%, with an option for an additional $100 million term loan at the same non-dilutive rate.

In addition, Chicago Atlantic Advisors, LLC agreed to serve as the lead administrative agent and collateral agent. AFC Gamma, Inc. AFCG is also participating in the transaction.

George Archos, the company's founder and CEO said that the upsizing of the existing credit facility supports the company's strategic growth plans, in addition to continued value creation for our shareholders.

"In partnership with Chicago Atlantic and leveraging Verano's strong fundamentals, we've again lowered our cost of capital on a non-dilutive basis," Archos continued. "This transaction dovetails with our short- and long-term objectives to remain acquisitive and expand the Verano platform in both new and existing markets."

John Mazarakis, partner at Chicago Atlantic, is thrilled to expand the partnership with Verano.

"A steadfast commitment to profitable growth has always set Verano apart, and that was a key driver of this credit facility carrying one of the lowest costs of capital to-date in the cannabis industry," Mazarakis added.

More Recent News From Verano:

VRNOF Price Action

Verano's shares traded 0.05% higher at $10.92 per share at the time of writing, Wednesday morning.

Photo: Courtesy of Karolina Grabowska from Pexels

Posted In: CannabisNewsFinancingSmall CapMarketsChicago AtlanticGeorge ArchosJohn Mazarakis
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on bzcannabis.com – Prices will increase very soon!


Loading...