Cannabis Giant Curaleaf Expands Revolving Credit Facility To $100M, Here’s Where The Money Will Go

Cannabis giant Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) announced on Tuesday that it has amended its revolving credit agreement with Needham Bank, increasing its borrowing limit from $40 million to $100 million and extending the maturity to five years.

The upsized secured revolving credit facility has an initial term of one year and bears interest on any outstanding principal at 7.99%.

The facility can be extended for up to five years, with the interest rate potentially increasing to 8.99% if the company refinances its Senior Note Facility due in 2026.

Boris Jordan, Chairman and CEO of Curaleaf, praised the move.

“I couldn’t be prouder of our team for the focus, discipline, and collaboration that made completing this $100 million facility possible,” Jordan said. “Not only does this increased credit line provide us greater flexibility to execute our strategic plan, but it also demonstrates the confidence Needham has in our long-term objectives.”

Curaleaf plans to use the funds to pay a minimum of $50 million of its remaining, higher-interest-bearing, acquisition-related debt in addition to continuing to support working capital needs.

In the meantime, Curaleaf acquired the equity stake in Curaleaf International Holdings Limited previously held by a single strategic institutional investor in July, bringing its European holding company to 100%.

The acquisition strengthened the company’s control over its European operations, enabling enhanced strategic alignment across international markets.

Curaleaf’s shares traded 6.6667% higher at $3.36 after the market close on Wednesday.