Marijuana MSO Curaleaf secures $40M line of credit, reports Q3 loss of $144M
Marijuana multistate operator Curaleaf Holdings said it has secured a $40 million revolving line of credit from a “major commercial regional bank.”
Curaleaf will use the credit line from Needham Bank in Massachusetts for general corporate purposes and working capital, according to a news release.
Boris Jordan, the New York-based MSO’s chair and CEO, said the credit line will provide flexibility traditionally not available to the cannabis sector and allows the company to continue growing in what continues to be a difficult capital-raising environment.
“In my first few months in my new role as CEO, I’ve been focused on cost-savings measures across every facet of the business with the intent of driving profitable growth,” he said in a statement.
“With our new revolving credit facility, we will have an opportunity to better support various business needs across the globe.”
The two-year revolving credit facility has a maturity date of Dec. 15, 2026, with an interest rate of 7.99%.
Curaleaf secured the credit facility on the heels of reporting a $44 million loss in the third quarter.
The company’s third-quarter revenue of $331 million represents a decrease of 1% year-over-year.
After Curaleaf released its third-quarter financial report, Jordan said that he is optimistic the pro-marijuana stance that President-elect Donald Trump revealed on the campaign trail will lead to federal reform, including approval of rescheduling and the Secure And Fair Enforcement Regulation (SAFER) Banking Act.
“Trump closed his speech last night by saying ‘promises made, promises kept,’” Jordan told analysts.
“We’ve already been in touch with his transition team to ensure that the new administration follows through on its commitments made to the industry.
“In our expertise, historically, President Trump has put an effort to deliver on his campaign promises, and we see no reason why this time would be different.”
The company trades as CURA on the Toronto Stock Exchange and CURLF on the over-the counter markets.