Curaleaf (OTC: CURLF), a multi-state operator (MSO) of marijuana dispensaries, announced Monday that it has secured a new round of financing. The company said it has completed a $50 million secured revolving credit facility with a three-year term.
It added that it has already fully drawn from the facility.
The borrowings from the “revolver” bear an interest rate of 10.25%. While that is significantly higher than current rates for many other types of corporations, it is comparatively reasonable given the at-times exorbitant interest cannabis companies are forced to pay for loan products. The industry is chronically loss-making as a whole, and because of the drug’s illegality at the federal level, access to many other types of funding is limited.