Vertically integrated marijuana company Cansortium has secured a senior credit agreement for up to $96.5 million.
The Tampa, Florida-based company, which operates under the Fluent brand, also paid off a $23 million loan – plus 13% accrued interest – from Chicago-headquartered multistate operator Green Thumb Industries, according to a Tuesday news release.
The credit agreement with Chicago Atlantic, which has a 12% cash interest rate and 1% paid-in-kind interest annually, refinances Cansortium’s existing $71 million senior secured term loan that was set to mature May 29, 2025, a Wednesday news release noted.
“The loan’s favorable interest rate and single financial covenant underscore our strong financial standing, while its nondilutive structure – free of equity or warrants – preserves shareholder value,” Cansortium CEO Robert Beasley said in a statement.
“As a result of this transaction, we have no material debt maturities until late 2028.”
The refinancing includes access to two more credit lines totaling $25 million.
Those credit lines, combined with the cash balance from Cansortium’s impending merger with RIV Capital, positions the company to enter 2025 with a robust war chest, Beasley said.
Cansortium’s merger with Toronto-headquartered RIV Capital is expected to close in early December, according to the Tuesday release.
“These resources will allow us to pursue strategic acquisitions and growth initiatives in key markets like Pennsylvania and New York while also targeting new opportunities in emerging high-growth states,” Beasley said.
The credit agreement requires Cansortium to maintain an unrestricted cash balance of $4.5 million, tested at the end of each quarter.
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