Adam Jackson
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) on Wednesday closed on a financing deal that will provide the company additional funds to the tune of $71.5 million.
The commercial loan is secured by a cultivation and manufacturing site in Florida, and the company said it will pay interest at a fixed rate of 7.53% for the duration of the five-year loan – a solid rate for the cannabis industry.
“We are pleased to announce this nondilutive financing at industry leading terms, particularly given the current macroeconomic backdrop,” CEO Kim Rivers said. “This loan provides Trulieve greater flexibility as we focus on improving cash flow in 2023.”
Valley National Bank served as lead agent for the three bank lenders involved in the deal. The company intends to use the net loan proceeds for general corporate purposes.
“We’re proud to partner with Trulieve, one of the leading providers in the medical and recreational cannabis industry,” said John Meyer, senior VP of commercial lending at Valley Bank. “We believe our relationship-based banking model was a differentiator in structuring this commercial loan with Trulieve ,and we’re excited to support them as they continue to grow and expand into new markets.”
