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Jan. 15, 2020, 8:14 a.m. EST

Curaleaf closes upsized $300 million senior secured term loan facility

Curaleaf Holdings Inc. (OTC:CURLF) (CNQ:CA:CURA) said Wednesday it has closed an upsized $300 million senior secured term loan facility with an interest rate of 13% per annum. Proceeds of the deal will be used to refinance existing debt, pay fees and expenses from previously announced acquisitions, to fund capex and for general corporate purposes. "Most importantly we strengthened our balance sheet without diluting our existing shareholders," Chief Executive Joseph Lusardi said in a statement. Cannabis companies have been struggling to raise capital of late after a sharp correction in the sector, which has been developing more slowly than expected and continues to compete with the black market. A number of companies, including Aurora Cannabis (NYS:ACB) (TSE:CA:ACB) have been forced into highly dilutive capital raisings. Curaleaf shares have gained 22% in the last 12 months, while the ETFMG Alternative Harvest ETF (PSE:MJ) has fallen 41% and the S&P 500 (S&P:SPX) has gained 26%.

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