Monday looks to be the closing day on deals with Cresco Labs and Curaleaf.
Cresco Labs (CSE: CL) (OTCQX: CRLBF) closed on its recently announced non-brokered credit agreement for a senior secured term loan of $100 million. Cresco Labs says it has an option to increase the size of the facility to a maximum of $200 million. Curaleaf said it will use the money to pay for the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.
Charlie Bachtell, CEO, and Co-founder of Cresco Labs said, “The closing of this financing is an important event and was driven by the incredible opportunities we at Cresco have before us. We have worked to create a credit facility that strengthens our balance sheet in a non-dilutive manner – with no warrants nor convertibility to equity. This transaction demonstrates that capital is available to the top operators in this industry who demonstrate a disciplined strategic focus, a responsible allocation of capital, and a track record of operational execution. We are especially pleased to have closed the transaction with such a high-quality group of investors who have displayed a dedicated commitment to the long-term success of Cresco as we continue to execute our vision – to build the most important company in cannabis.”
The Senior Loan is for either an 18-month or 24-month term, at the lender’s option. The Loans bear interest at a rate of approximately 12.7% per annum for 18-month loans and approximately 13.2% for 24-month loans, payable quarterly in arrears.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it closed its acquisition of vape brand Select on February 1. Curaleaf’s acquisition of Cura Partners, Inc. who are the owners of the Select brand, includes Select’s manufacturing, distribution, marketing, and sales operations marketed under the Select brand name, including all intellectual property.
“The close of the Select deal is a major milestone in Curaleaf’s history and marks an unprecedented phase of growth for our company,” said Joseph Lusardi, CEO of Curaleaf. “As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest-growing cannabis brands in the country.”
Select founder Cameron Forni will take on the role of President of Select. Curaleaf Chief Financial Officer Neil Davidson will now be the company’s Chief Operating Officer effective immediately. Mr. Davidson will manage the company’s cultivation, processing and manufacturing capabilities with a focus on driving growth and operational efficiencies across the entire organization. Former Chief Operating Officer Stuart Wilcox will transition to a new role, leading business expansion efforts in emerging markets.
The news comes on the heels of Curaleaf’s acquisition of the Acres Cannabis vertical operations in Nevada, and the awarding of preliminary retail and processing licenses in Utah.
“Curaleaf has always been a fast-paced, performance-driven company, and we continue to attract best-in-class talent to fill key management roles. We’re thrilled to be expanding our leadership bench to include individuals with unmatched expertise combined with a deep passion for this business,” said Lusardi.