Curaleaf stock is making a solid move on Friday after Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) has received commitments from a syndicate of lenders for a $275 million USD Senior Secured Term Loan Facility.
Investors Cheer the News
2019 has been a troublesome year for the cannabis industry, and it has resulted in massive drops in the stock prices of some of the biggest companies. Raising fresh capital has been a problem for many companies; however, Curaleaf Holdings made a major announcement today with regards to its financing.
The company announced today that a consortium of lenders has committed to providing the company with a Senior Secured Term Loan Facility worth $275 million. The company is going to be charged as much as 13% interest per annum in interest, and Curaleaf would need to pay off the arrears every quarter.
It has also been revealed that the credit facility is going to mature 48 months after it is closed. It has been reported that Curaleaf is going to use the proceeds to refinance some of its existing debts, finance capital expenditure, take care of transaction fees, and pay general administrative expenses.
Curaleaf stock is up by over 6% at $5.62 USD.
The deal is slated to be closed on January 10 next year. The Chief Executive Officer of the company, Joseph Lusardi, spoke about the deal in a press release: “This transaction is a historic milestone for Curaleaf. Our track record of continuously improving results has attracted a strong group of institutional investors.”
Opening Cannabis Dispensary in Cape Cod Early Next Year
That is not all. The company announced another piece of positive news earlier this week as well. On Thursday, Curaleaf stock spiked after the company announced that it has managed to get the necessary regulatory approval to set up its first adult-use dispensary in Cape Cod.
The being said, the company went on to add that it still needs to complete certain formalities with the Massachusetts Cannabis Control Commission, and once those are completed, the store could be opened at some point in early 2020. The company opened its very first dispensary in Massachusetts in November this year.
Curaleaf stock is one of the top performers in the cannabis sector, with a gain of over 12% year-to-date.
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