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Pot Co. Acreage Holdings Borrows $15M At 60% Interest Rate

Law360 (June 17, 2020, 8:34 PM EDT) — Cannabis giant Acreage Holdings on Wednesday said it had taken a $15 million loan from an unnamed institutional investor at an eye-popping 60% interest rate, putting up intellectual property and assets in three states as collateral amid a widespread capital crunch in the cannabis sector.

The short term The The short term loan includes a $6 million default penalty and cannot be prepaid for 90 days, potentially locking in at least $2. 25 million in interest payments. Acreage said it secured the loan with its cannabis operations in Illinois, New Jersey and Florida, along with its U. S. intellectual property. The deal comes as cash-strapped cannabis companies struggle. . . Stay ahead of the curve

To Read The Rest Of This Article By Staff on Law360

Published: June 18, 2020

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