Oregon-based craft cannabis producer Grown Rogue International (CSE: GRIN) (OTC: GRUSF) said it secured a $7 million credit facility from a “national, FDIC-insured commercial bank.”
The four-year credit facility carries an interest rate of around 9.2% per annum, calculated as the secured overnight financing rate (SOFR) – which is currently at 4.3% – plus 4.9%. The loan will be amortized over six years with no prepayment penalties and monthly interest payments, according to the company Monday.
“We are pleased to be announcing the closing of this loan with a top 50 bank holding company in the United States, at attractive terms,” CEO Obie Strickler said in a statement. “We appreciate the support the bank is demonstrating in our business, and we look forward to building upon this new banking relationship.”
Grown Rogue said it will use the funds to support current growth initiatives, provide additional working capital and refinance a small amount of existing debt. The company’s obligations under the credit facility are secured through a general security agreement.
It’s a milestone for the Oregon-based operator as it continues expansion across multiple states, including Illinois, Michigan, New Jersey and Oregon. such as Oregon, Michigan, New Jersey and Illinois. Except for Illinois, those states have all faced significant price compression in recent months.
However, the company continues to execute on its expansion plans, having entered the New Jersey market in December following the completion of its first harvest there. Phase II construction at its New Jersey facility is underway and scheduled for completion in the first half of 2025. At full capacity, the facility will produce around1,100 pounds of whole flower monthly, it said.
Grown Rogue is targeting a Phase I completion in the second half of 2025 for its Illinois operations.
The company noted in its release that it continues making “modest investments to improve outdoor craft cultivation capabilities in preparation for eventual interstate commerce.”
The company reported revenue of $7 million for its third quarter ending Sept. 30, 2024, up 7% from $6.5 million in the prior-year period.
[[{“value”:”The company says loan will support growth initiatives while refinancing existing debt at competitive rate.
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