As mugglehead reports that’s not all there’s a US$6 million fee in the event of default !
Essentially they have borrowed at 18 times above the U.S. national prime lending rate.
We presume they are hoping the next harvest will see them right.
On Wednesday, the New York-based firm said it signed the US$15 million funding agreement with an unnamed institutional investor for working capital and general corporate purposes. The secured note has a maturity date of four months with a premium interest rate 18 times above the U.S. national prime lending rate.
The loan also includes a hefty US$6 million fee in the event of default and is backed by Acreage’s operations in Illinois, New Jersey and Florida, as well as the company’s intellectual property.
Acreage stock fell $0.30 on Tuesday to US$2.76 on the Canadian Securities Exchange.
Richard Carleton, CEO of the CSE, told Mugglehead last month he is in constant talks with cannabis companies listed on Canada’s smaller entrepreneurial exchange about how they plan to stay afloat.