Utah Archives - Green Market Report

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it has upsized and closed a Senior Secured Term Loan Facility from a syndicate of lenders totaling $300 million. The notes for Curaleaf will bear interest at a rate of 13.0% per annum, payable quarterly in arrears, with a maturity 48 months from closing.

The company said that the proceeds will be used to refinance existing debt, satisfy transaction fees and expenses from previously announced acquisitions, fund capital expenditures and for general corporate purposes. The sole placement agent for the Facility is Seaport Global Securities LLC.

“We are pleased with the upsizing and closing of the deal at what we believe to be attractive terms,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. “Most importantly we strengthened our balance sheet without diluting our existing shareholders. With the completion of this transaction, we have ample liquidity to execute on our strategy and are well-positioned to take advantage of the significant market opportunities that exist in this space.”

In October, Curaleaf amended its deal with Select. At the time Lusardi said, “We remain extremely confident in the strength and operations of the Select business and of the long-term prospects of the cannabis sector as a whole. We look forward to bringing our companies together to lead this industry as it continues to mature and grow. Expiration of the HSR waiting period was a key milestone in closing this transaction and we continue to work with state regulators to receive the necessary approvals with a target closing date of January 1, 2020.”

Utah

Earlier this week, Curaleaf said that it had received an important new permit in the state of Utah. The company announced in a press release Tuesday that it has won preliminary approval for a processing license there.

“We are pleased with the progress we are making in the state of Utah. Aligned with our strategy, this processing license puts us closer to achieving vertical integration in the state, which gives us greater control of production while lowering costs for patients,” said Lusardi. “We look forward to providing the people of Utah with increased access to high quality and reliable cannabis products.”

While pending final approval, the new license will allow the company to complete a Utah processing facility right away.