Standard Wellness Holdings LLC has secured a senior secured credit facility of $14 million from Advanced Flower Capital, the two companies announced on Thursday.
An announcement stated that the vertically-integrated cannabis company would use the funds to refinance debt. It will include full repayment to Focus Growth Capital Partners of its loan facility and an early repayment to Columbia Care of a seller’s note. The debt was created when Standard Wellness bought the Cannabist Dispensary in Springville.
Moreover, these funds will be fully used to acquire a St. Louis dispensary licence, although this purchase is subjected to regulatory approval.
AFC has been a lender of cannabis companies, and specifically private owned ones, for many years. The interest rate on the new credit facility is 12.5%.
CFO Kyle Ciccarello of Standard Wellness said that the early repayment of Columbia Care and the Focus Growth note reflects Standard Wellness proactive approach in managing financial obligations.
According to Maloof, the AFC credit facility is expected to help Standard reduce its debt, remove legacy obligations and make strategic investments.
It is said that the St. Louis Dispensary purchase was a critical component of Long-Term Growth Strategy for the Company.
Standard Wellness was founded in Ohio in 2017. It operates in Ohio, Missouri, Utah and holds cultivation, processing, and dispensary licensing in Maryland. The Forest retail brand is operated by the company, which has five locations. It employs about 350 employees.
Standard has made its first ever legal marijuana sales in Ohio, through The Forest Sandusky dispensary. The first delivery will be to an Utah pharmacy by February 2020.
Standard Wellness was advised by Gramercy Capital Group LLC, through INTE Securities LLC. Feuerstein Kulick LLP acted in the capacity of legal counsel.