Chicago Atlantic Group affiliate Green Ivy Capital has revealed that it will be serving as the sole lead arranger and administrator for a credit facility for Verano Holdings $30 million, said PR Newswire. Other institutional lenders will participate in this facility.
The credit facility also referred to as a senior secured term loan facility or Term Loan Facility, will have an interest of 15.25% fixed rate. According to the report, Verano will be using funding from this credit as working capital. It will also be used for organic growth and acquisitions.
The loan is recognized as “non-dilutive,” which means that the receiver does not lose ownership of the company upon receiving money. It also has a two-year term.
Verano, a cannabis cultivation company based in Chicago, has locations in 12 states across the United States. It also has 14 retail sites and 6 cultivation facilities.
With this credit, the firm seeks to establish more retail locations by the end of 2020. More production and cultivation quarters are also in the plan.
Chicago Atlantic principal John Mazarakis said, “We are excited to partner with Verano to support its growth plans.” Mazarakis also commented on the “strong management team, brand, and efficient operations” of the cannabis company.
Chicago Atlantic is known as a specialist in direct lending and opportunistic private investing. The asset management firm aims to invest in North American opportunities. Its affiliate Green Ivy focuses on managing diverse assets in the cannabis industry.
Green Ivy has been active in capitalizing in various parts of the cannabis supply chain, from cultivation and processing to distribution and retail.
Verano CEO George Archos expressed his excitement about the partnership saying that the company is “delighted to partner with Chicago Atlantic as a financing partner who shares [their] vision.