Acreage Enters into Amended and Restated Credit Agreement
Acreage Holdings, Inc. (OTCQX: ACRHF) has entered into an amended and restated credit agreement with Canopy Growth and a new third-party lender. The new lender advanced $65 million with a 10% original issue discount. After repaying the prior non-Canopy lender and covering closing costs, Acreage received approximately $8 million in net proceeds. The new agreement features a 13.5% annual interest rate and matures in September 2027.
CEO Dennis Curran stated that this capital infusion will support the expansion of Acreage's retail footprint and strengthen its presence in core markets, particularly in Ohio's new non-medical cannabis market. The agreement also grants the new lender a board observer right. Seaport Global Securities served as the exclusive financial advisor and sole placement agent for the transaction.
Acreage Holdings, Inc. (OTCQX: ACRHF) ha stipulato un accordo di credito modificato e rinnovato con Canopy Growth e un nuovo prestatore terzo. Il nuovo prestatore ha avanzato 65 milioni di dollari con uno sconto originale del 10%. Dopo aver rimborsato il precedente prestatore non legato a Canopy e coperto i costi di chiusura, Acreage ha ricevuto circa 8 milioni di dollari in proventi netti. Il nuovo accordo prevede un tasso d'interesse annuale del 13,5% e scade a settembre 2027.
Il CEO Dennis Curran ha dichiarato che questo afflusso di capitali supporterà l'espansione della presenza al dettaglio di Acreage e rafforzerà la sua posizione nei mercati principali, in particolare nel nuovo mercato della cannabis non medica dell'Ohio. L'accordo concede anche al nuovo prestatore il diritto di osservatore nel consiglio di amministrazione. Seaport Global Securities ha agito come consulente finanziario esclusivo e unico agente di collocamento per la transazione.
Acreage Holdings, Inc. (OTCQX: ACRHF) ha firmado un acuerdo de crédito modificado y renovado con Canopy Growth y un nuevo prestamista externo. El nuevo prestamista adelantó 65 millones de dólares con un descuento original del 10%. Después de pagar al prestamista anterior que no estaba vinculado a Canopy y cubrir los costos de cierre, Acreage recibió aproximadamente 8 millones de dólares en ingresos netos. El nuevo acuerdo presenta una tasa de interés anual del 13,5% y vence en septiembre de 2027.
El CEO Dennis Curran declaró que esta inyección de capital apoyará la expansión de la presencia minorista de Acreage y fortalecerá su posición en los mercados clave, especialmente en el nuevo mercado de cannabis no médico de Ohio. El acuerdo también otorga al nuevo prestamista un derecho de observador en la junta. Seaport Global Securities actuó como asesor financiero exclusivo y único agente de colocación para la transacción.
Acreage Holdings, Inc. (OTCQX: ACRHF)는 Canopy Growth 및 새로운 제3자 대출자와 수정 및 갱신된 신용 계약을 체결했습니다. 새로운 대출자는 6,500만 달러를 10%의 원금 할인으로 지원했습니다. 이전의 비-Canopy 대출자를 상환하고 클로징 비용을 커버한 후, Acreage는 약 800만 달러의 순수익을 얻었습니다. 새로운 계약에서는 연 13.5%의 이자율을 적용하며, 2027년 9월에 만기가 됩니다.
CEO인 Dennis Curran은 이 자본 유입이 Acreage의 소매 범위 확장을 지원하고 핵심 시장에서의 입지를 강화할 것이라고 밝혔습니다. 특히 오하이주의 새로운 비의료용 대마초 시장에서 그렇습니다. 이 계약은 또한 새로운 대출자에게 이사회 관찰자 권리를 부여합니다. Seaport Global Securities는 이번 거래의 독점 재무 고문이자 단독 배치 대행업체로 활동했습니다.
Acreage Holdings, Inc. (OTCQX: ACRHF) a conclu un accord de crédit modifié et renouvelé avec Canopy Growth et un nouveau prêteur tiers. Le nouveau prêteur a avancé 65 millions de dollars avec une remise d'émission originale de 10 %. Après avoir remboursé le prêteur précédent non lié à Canopy et couvert les frais de clôture, Acreage a reçu environ 8 millions de dollars de produits nets. Le nouvel accord présente un taux d'intérêt annuel de 13,5% et arrive à échéance en septembre 2027.
Le PDG Dennis Curran a déclaré que cet afflux de capitaux soutiendrait l'expansion de la présence de détail d'Acreage et renforcerait sa position sur les marchés clés, en particulier sur le nouveau marché du cannabis non médical de l'Ohio. L'accord accorde également au nouveau prêteur un droit d'observation au conseil d'administration. Seaport Global Securities a agi en tant que conseiller financier exclusif et agent de placement unique pour la transaction.
Acreage Holdings, Inc. (OTCQX: ACRHF) hat einen geänderten und erneuerten Kreditvertrag mit Canopy Growth und einem neuen Drittanbieter-Kreditgeber abgeschlossen. Der neue Kreditgeber hat 65 Millionen Dollar mit einem ursprünglichen Emissionsrabatt von 10% bereitgestellt. Nach der Rückzahlung des vorherigen nicht Canopy-Kreditgebers und der Deckung der Abschlusskosten erhielt Acreage ca. 8 Millionen Dollar an Nettoprovenienzen. Der neue Vertrag sieht einen jährlichen Zinssatz von 13,5% vor und läuft bis September 2027.
CEO Dennis Curran erklärte, dass diese Kapitalzufuhr die Expansion der Einzelhandelspräsenz von Acreage unterstützen und die Präsenz in den Kernmärkten, insbesondere im neuen nicht-medizinischen Cannabis-Markt in Ohio, stärken wird. Der Vertrag gewährt dem neuen Kreditgeber außerdem das Recht auf einen Beobachter im Vorstand. Seaport Global Securities fungierte als exklusiver Finanzberater und alleiniger Platzierungsagent für die Transaktion.
- Acreage secured approximately $8 million in net proceeds to fuel growth and expansion
- New credit agreement extends maturity date to September 2027, providing additional financial flexibility
- Opportunity to expand retail footprint and strengthen presence in core markets, particularly in Ohio's new non-medical cannabis market
- Option to pay interest to Canopy in-kind initially, potentially preserving cash
- High annual interest rate of 13.5% on the new credit agreement
- 10% original issue discount on the $65 million advance, resulting in $6.5 million in immediate costs
- New lender granted a board observer right, potentially increasing external influence on company decisions
Approximately
New maturity date of September 2027 enables additional financial flexibility
NEW YORK CITY, NY / ACCESSWIRE / September 13, 2024 / Acreage Holdings, Inc. ("Acreage" or the "Company") (CSE:ACRG.A.U)(CSE:ACRG.B.U)(OTCQX:ACRHF)(OTCQX:ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., is pleased to announce that it has entered into an amended and restated credit agreement (the "Amended and Restated Credit Agreement") with a subsidiary of Canopy Growth Corporation ("Canopy") and a third-party lender (the "New Lender"), amending the amended and restated credit agreement dated June 3, 2024 among Acreage, High Street Capital Partners, LLC, as borrower, and the other parties thereto (the "Prior Credit Agreement").
The New Lender advanced US
"This capital infusion will facilitate the expansion of our retail footprint and strengthen our presence in our core markets," said Dennis Curran, Chair and Chief Executive Officer of Acreage. "With our enhanced financial position, we are well-positioned to quickly act on high-growth opportunities that are available to us, particularly within Ohio's newly established non-medical market."
The Amended and Restated Credit Agreement provides for an annual interest rate of
The Amended and Restated Credit Agreement also provides the New Lender with a board observer right.
Seaport Global Securities LLC acted as the exclusive financial advisor and sole placement agent for the transaction.
About Acreage Holdings
Acreage is a multi-state operator of cannabis cultivation and retailing facilities in the U.S., including the Company's national retail store brand, The Botanist. With its principal address in New York City, Acreage's wide range of national and regionally available cannabis products include the award-winning brands The Botanist and Superflux. Since its founding in 2011, Acreage has focused on building and scaling operations to create a seamless, consumer-focused, branded experience. Learn more at www.acreageholdings.com and follow us on Twitter, LinkedIn, Instagram, and Facebook.
Forward-Looking Statements
This news release and each of the documents referred to herein contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation, respectively. All statements, other than statements of historical fact, included herein are forward-looking information, including, without limitation, expectations and outcomes regarding the use of proceeds from the advances pursuant to the Amended and Restated Credit Agreement; the expansion of the Company's retail footprint; and expectations for other economic, business, and/or competitive factors.
Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Acreage or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including, but not limited to: the occurrence of changes in U.S. federal laws regarding the cultivation, distribution or possession of marijuana; the ability of Canopy, Canopy USA, LLC ("Canopy USA") and Acreage to satisfy, in a timely manner, the closing conditions to the acquisition of the Class D subordinate voting shares of Acreage (the "Floating Shares") pursuant to the plan of arrangement (the "Floating Share Arrangement") in accordance with the arrangement agreement (the "Floating Share Arrangement Agreement") dated October 24, 2022, as amended, among Canopy, Canopy USA and Acreage; risks relating to the value and liquidity of the Floating Shares and the common shares of Canopy; Canopy maintaining compliance with the Nasdaq and Toronto Stock Exchange listing requirements; the rights of the holders of Floating Shares may differ materially from those of shareholders in Canopy; expectations regarding future investment, growth and expansion of Acreage's operations; the possibility of adverse U.S. or Canadian tax consequences upon completion of the Floating Share Arrangement; if Canopy USA acquires the Class E subordinate voting shares of the Company (each, a "Fixed Share") pursuant to the arrangement agreement between Acreage and Canopy dated April 18, 2019, as amended (the "Fixed Share Arrangement Agreement") without structural amendments to Canopy's interest in Canopy USA, the listing of the common shares of Canopy (the "Canopy Shares") on the Nasdaq Global Stock Market (the "Nasdaq") may be jeopardized; the risk of a change of control of either Canopy or Canopy USA; restrictions on Acreage's ability to pursue certain business opportunities and other restrictions on Acreage's business; the impact of material non-recurring expenses in connection with the Floating Share Arrangement on Acreage's future results of operations, cash flows and financial condition; the possibility of securities class action or derivatives lawsuits; in the event that the Floating Share Arrangement is not completed, but the acquisition of all issued and outstanding Fixed Shares (the "Fixed Share Acquisition") is completed and Canopy becomes the majority shareholder in Acreage, the likelihood that the holders of Floating Shares will have little or no influence on the conduct of Acreage's business and affairs; risk of situations in which the interests of Canopy USA and the interests of Acreage or shareholders of Canopy may differ; Acreage's compliance with Acreage's business plan for the fiscal years ending December 31, 2020 through December 31, 2029 pursuant to the Fixed Share Arrangement Agreement; in the event that the Floating Share Arrangement is completed, the likelihood of Canopy completing the Fixed Share Acquisition in accordance with the Fixed Share Arrangement Agreement; there is no certainty on the Exchange Ratio and, depending on timing of closing of the Floating Share Arrangement and the Fixed Share Acquisition, if at all, and the potential for dilution in respect of the Offering, there may be further diminution of the Exchange Ratio, which will result in fewer Canopy Shares being received upon completion of the Fixed Share Acquisition (see "Risk Factors - Risks Related to the Acquisition - Risks Associated with a Fixed Exchange Ratio" and "Risk Factors - Risks Related to the Acquisition - The Exchange Ratio may be decreased in certain instances" in the Company's Management Information Circular dated May 17, 2019); risks relating to certain directors and executive officers of Acreage having interests in the transactions contemplated by the Floating Share Arrangement Agreement and the connected transactions that are different from those of the holders of Floating Shares; other expectations and assumptions concerning the transactions contemplated between Canopy, Canopy USA and Acreage; the available funds of Acreage and the anticipated use of such funds; the availability of financing opportunities for Acreage and Canopy USA and the risks associated with the completion thereof; regulatory and licensing risks; the ability of Canopy, Canopy USA and Acreage to leverage each other's respective capabilities and resources; changes in general economic, business and political conditions, including changes in the financial and stock markets; legal and regulatory risks inherent in the cannabis industry, including the global regulatory landscape and enforcement related to cannabis, political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the cannabis industry; and such other risks disclosed in the Company's Proxy Statement and Management Information Circular dated August 17, 2020, the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as amended, and the Company's other public filings, in each case filed with the SEC on the EDGAR website at www.sec.gov and with Canadian securities regulators and available under Acreage's profile on SEDAR+ at www.sedarplus.ca. Although Acreage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
Although Acreage believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and Acreage does not undertake any obligation to publicly update such forward-looking information or forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Service Provider, nor any securities regulatory authority in Canada, the United States, or any other jurisdiction, has reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Contact Information
For more information, please contact:
Philip Himmelstein
Chief Financial Officer
investors@acreageholdings.com
646-600-9181
Courtney Van Alstyne
MATTIO Communications
acreage@mattio.com
SOURCE: Acreage Holdings
View the original press release on accesswire.com
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