Cresco stock is moving higher in the early session on Thursday after Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) secured a term loan agreement for an initial sum of $100 million with an option to borrow up to $200 million.
Major Financing Deal
The cannabis sector went through a lot of troubles through the course of 2019, but the situation has been different in the new year, with many companies seeming to now be on course to make turnarounds. In a new development, Cresco Labs Inc made an announcement that should come as a major boost for its investors. The company announced today that it entered into an agreement for secured long-term loans by way of which it is going to borrow $100 million initially. There is an option in the agreement for Cresco to borrow as much as $200 million.
The company is going to get the initial tranche by January 30, and the money is reportedly going to be used to expand Cresco Labs’ operations in the state of Illinois. This is a significant development for Cresco Labs since the cannabis sector has been struggling to raise money for some time.
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It remains to be seen how the market reacts to the news, and investors would do well to keep an eye on Cresco stock over the coming days.
January 2020 has been a highly eventful month for Cresco Labs. Earlier this month, the company managed to close a key acquisition. The company announced that it finally completed the acquisition of Origin House. The deal was agreed upon as far back as April last year, and the completion of the deal is a major boost for Cresco Labs.
Origin House is one of the main distributors of cannabis products in the lucrative state of California. Additionally, it distributes its own products as well. Thanks to this acquisition, Cresco Labs will now a major presence in California.
At the time of writing, Cresco stock is trading higher by 2.53% at C$8.51.
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