Marijuana MSO Verano ups credit agreement with $120M loan at 8.5%

Chicago-based marijuana multistate operator Verano Holdings Corp. said Wednesday it amended an existing credit agreement to secure an additional $120 million in funding at a lower annual interest rate of 8.5%.

The loan brings the total outstanding senior secured term loans under the credit facility to $250 million.

The latest funding comes with the option for an additional $100 million.

The 8.5% interest rate on the new loan is below the 9.75% annual rate Verano secured for its previous upsized credit facility announced in May.

Chicago Atlantic Advisors and AFC Gamma provided the funding for the latest tranche, according to a news release.

“This transaction dovetails with our short- and long-term objectives to remain acquisitive and expand the Verano platform in both new and existing markets,” Verano CEO George Archos said in the release.

In November 2020, Verano acquired Florida-based Altmed for an undisclosed sum and now holds cannabis business interests in 14 states.

Verano trades on the Canadian Securities Exchange as VRNO and on the over-the-counter markets as VRNOF.