Cannabis Company MariMed Closes $35M Credit Facility To Boost Strategic Growth Plans

MariMed, Inc. MRMD, a leading multi-state cannabis operator, announced it closed a $35 million secured credit facility with Chicago Atlantic Advisors, LLC as the lead lender.

"I am delighted to announce the closing of this transformative credit facility (...) MariMed is known for its operational and financial discipline, resulting in one of the strongest balance sheets in the cannabis industry, enabling us to secure this funding," said Jon Levine, MariMed president and interim CEO. "While we are capable of funding our current growth plans with cash flow from operations, the time is right to raise capital and accelerate these plans, which we believe will result in meaningful returns to our shareholders."

What Happened: MariMed closed a $35 million credit facility with a three-year maturity and the ability to extend to a five-year maturity under certain conditions.

  • MariMed borrowed $30 million at close and can draw down up to an additional $5 million over the next six months.
  • Funds will be used for completing the build-out of a new cultivation and processing facility in Illinois and a new processing kitchen in Missouri, expanding existing cultivation and processing facilities in Massachusetts and Maryland, funding other capital expenditures, and repaying in full the Kind Therapeutics seller notes from the Maryland acquisition in April 2022, with the remaining balance to be used for acquisitions.
  • The facility bears interest at a floating rate based on the bank prime rate plus 5.75% and includes 30% warrant coverage priced at a 20% premium.
  • The Company's Debt/EBITDA ratio based on the midpoint of the Company's 2022 annual EBITDA guidance is now 1.5X.
  • MariMed can repay the principal loan balance without penalty after the first 20 months, per a company press release.

“We are excited to support the growth of MariMed. The team has consistently demonstrated its ability to profitably expand across an attractive six-state footprint for the benefit of its patients and adult-use customers. We look forward to significantly growing our investment with them in the future,” said John Mazarakis, partner of Chicago Atlantic.

Chicago Atlantic acted as a lead arranger with the specialty finance company Silver Spike Investment Corp. SSIC for the senior secured credit facility, also serving as the administrative agent for the credit facility.

In the arrangement of the senior secured credit facility, Echelon Capital Markets acted as the financial advisor to MariMed.

The Benzinga Cannabis Capital Conference Is Back!

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A start, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Courtesy Of Geralt and Kindel Media by Pixabay Edited By Benzinga

Market News and Data brought to you by Benzinga APIs
Posted In: CannabisNewsPenny StocksFinancingMarketsChicago Atlantic AdvisorsJohn MazarakisJon LevineLLCMariMed Inc.premium
Benzinga simplifies 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!

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.