Pot Co. Acreage Borrows $33M, Pays Off $11M Debt – Law360

Law360 (September 30, 2020, 4:43 PM EDT) — Cannabis company Acreage Holdings Inc. has borrowed $33 million from an unnamed institutional investor, saying the cash infusion was used to shed outstanding debt as the company looks to shore up its balance sheet and achieve profitability.

Acreage said Tuesday that the loan would be used to retire an $11 million debt that bore 15% interest and could have diluted shareholders because it was convertible to stock. The new loan bears 7.5% interest and is unsecured, meaning Acreage hasn’t backed it up with collateral.

“Access to low-cost capital, even in a very challenging capital market environment for cannabis, has always been…

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