LeafLink Closes $250 Million in Debt Financing for LeafLink Financial Investment Will Fund Expansion of LeafLink Financial, the Cannabis Industry’s Premier Supply Chain Financing Solution NEW YORK, NY – July 22, 2020 LeafLink, the cannabis industry’s wholesale marketplace, today announced that LeafLink Financial, its cannabis supply chain financing arm, has closed a $250 million senior secured credit facility with a private commercial lender. This represents one of the largest debt financing deals completed in cannabis to date and is an important milestone for the industry. The capital will be deployed to support the cannabis supply chain as a whole by providing liquidity directly to licensed businesses, empowering the growth and stability of the industry at large. Settling business-to-business (“B2B”) transactions and access to capital are challenges faced across all industries, however, these realities are amplified in cannabis as a result of demanding regulations and limited access to basic financial services. LeafLink Financial, a proprietary digital supply chain financing product, is the premier solution that addresses these challenges by eliminating costs and optimizing cash flow for licensed cannabis operators across the United States. By assigning invoices to LeafLink Financial, brands and distributors can rely on upfront payments, broadly extend net terms to their retail customers, receive payment via ACH, and digitally reconcile invoices.
Retailers benefit from access to the flexibility of net terms, centralized accounts payable, and cash flow management tools. LeafLink has developed its suite of solutions over the last two years with a focus on compliance and scalability across all relevant legal cannabis markets. With the closing of this facility, LeafLink Financial is bringing access to capital directly to the cannabis industry by offering on-demand liquidity options for the $2.8 billion in orders placed annually on LeafLink’s wholesale marketplace, which represents an estimated 30% of all US wholesale cannabis.
platform currently operates in 26 North American territories, empowering 5,000+ retailers to order wholesale cannabis products directly from 1,500+ brands and distributors through its e-commerce marketplace. LeafLink Financial is led by Doug Gordon, who joined the company in October 2018 after cofounding and serving as Executive Vice President of leading digital small business lending company, Fundation. He is a recognized leader and innovator in the financial technology sector with more than 10 years of experience providing businesses with loans and lines of credit through partnerships with banks, B2B vendors, and online platforms. His move to LeafLink has accelerated the company’s mission to provide tools, technologies, and resources needed for the cannabis industry to thrive. In this case, LeafLink is elevating the cannabis space by introducing “liquidity as a service” – embedding access to capital directly into its ubiquitous B2B marketplace.
As Executive Vice President and Head of LeafLink Financial, Doug has built the company’s proprietary financial product and tech stack, while working alongside LeafLink Cofounders Ryan G. Smith and Zach Silverman to grow the team to support this revolutionary solution for cannabis. “We are excited to announce this milestone – it’s a huge leap forward for the cannabis industry, and marks a major advancement in the way LeafLink is able to serve and support our community,” said Doug Gordon, EVP and Head of LeafLink Financial. “As the cannabis industry’s wholesale marketplace, we are in the ideal position to support our customers with the liquidity they need to efficiently run their businesses, and closing this facility allows us to accomplish just that.” About LeafLink: LeafLink, the cannabis industry’s wholesale marketplace, is defining the way thousands of cannabis brands and retailers manage and track their orders and relationships, so they can focus on growing their businesses. Retailers who previously called, emailed, or texted 50+ sales reps to place an order, now save a day per week ordering all their cannabis brands in one cart on LeafLink. The e-commerce marketplace empowers brands, distributors, and retailers who want to streamline the ordering process, simplify communication, and spend less time on administrative work. The company has offices in New York, Los Angeles, and Toronto, and operates in 26 territories across North America. Cannabis retailers and brands use LeafLink to manage over $2.8B+ in annual orders, making up an estimated 30% of US wholesale cannabis commerce. Backed by leading venture capital firms and strategic investors such as Thrive Capital, Nosara Capital and Lerer Hippeau, LeafLink has raised more than US$51 million in venture funding to date. Learn more at LeafLink.com and LeafLink.com/product/leaflinkfinancial.
