Organic medical marijuana producer FARMACEUTICALRX announced that it has closed a $34 million senior secured term loan provided by Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) a commercial real estate finance company, and other institutional lenders.
The loan proceeds will be used to complete the funding of the company’s Ohio Level 1 cultivation and post-harvest facility, repay existing debt, fund equipment purchases, and for general working capital purposes. The company brings its cultivation and processing methods from the FARMACEUTICALRX of Pennsylvania operations to the 100,000 square foot facility in East Liverpool, Ohio. FARMACEUTICALRX of Ohio currently also operates its FRX Health dispensary in East Liverpool, Ohio.
“This funding allows us to take advantage of the tremendous opportunity in Ohio and to build on the momentum and market-leading position we developed in Pennsylvania,” Rebecca Myers, CEO and Founder of FARMACEUTICALRX stated. “We continue to believe Ohio is a very attractive limited license state and the right market for us. We are excited to partner with the Chicago Atlantic team who believes in our strong cash flow generation, and revenue and profitability prospects. We are committed to cultivating and producing premium organic and craft medical marijuana products for our loyal customers and to being disciplined stewards of capital for our shareholders."
John Mazarakis, executive chairman at Chicago Atlantic added: “Chicago Atlantic is excited to partner with FARMACEUTICALRX in Ohio on the completion of their 100,000-square-foot tier 1 cultivation facility that will bring additional jobs to East Liverpool, Ohio. We look forward to assisting with the company's current and future growth. Rebecca and her team are strongly committed to bringing differentiated, quality and organic products to the Ohio marketplace and are great examples of the management teams and organizations with whom Chicago Atlantic looks to partner.”
