Multistate cannabis operator Acreage Holdings said Wednesday it has agreed to a $12 million construction loan to complete the expansion of its cultivation and processing facility in the fast-growing Illinois market.
The financing is from The Pelorus Fund, a cannabis-focused real estate investment trust, and carries an annual interest rate of 16% over a term of 18 months.
Construction is expected to be completed in the second quarter of 2021.
New York-based Acreage is building out an existing 80,000-square-foot facility that will increase its wholesale and retail capacity in dried flower, oil extracts and THC-infused beverages.
The THC-infused beverage line utilizes intellectual property licensed from Canada-based Canopy Growth.
As previously announced, Acreage plans to launch Canopy Growth THC beverages in Illinois and California in summer 2021.
In September, Acreage raised $33 million of capital at 7.5% interest, the proceeds of which were used to pay off higher-interest debt, including a short-term loan with an exorbitant 60% interest.
The expensive short-term loan was used to acquire a vertical medical cannabis operation in New Jersey, where voters recently legalized adult use.