The company put up a Florida cultivation site as collateral.
Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced last week that it secured a new commercial loan of $25 million at 8.31% interest for five years. Funds from the deal will be used to help the company pay for ongoing operations.
The company put up one of its Florida cannabis cultivation sites as collateral for the loan from two different lenders, with First Federal Bank acting as lead agent in the deal.
“This loan provides Trulieve greater flexibility and bolsters our cash position as we focus on preparing for growth catalysts,” Trulieve CEO Kim Rivers said in a statement.
John Medina, CEO of First Federal Bank, added that the cannabis industry in Florida is “an important and complex sector with a significant presence.”
The $25 million loan is almost the same amount of Trulieve’s net loss in the third quarter this year, according to its latest financial filings.
At the end of September, Trulieve still had approximately $192 million in the bank against $1.3 billion in total liabilities, the company reported.
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