Cresco Labs (CL.CN) announced Monday the closing of a credit agreement with Needham Bank, a Massachusetts-based commercial bank, providing the company with a US$50 million revolving credit facility.
The facility bears interest at a fixed annual rate of 7.99% and matures in August 2030, said the company.
"As a source of non-dilutive capital, the Facility enhances Cresco's ability to pursue strategic opportunities that strengthen the Company's balance sheet and long-term financial profile," stated the company.
Borrowings under the facility will be available to fund growth initiatives, acquisitions and general corporate purposes, added the company.
"This facility reflects both the continued maturation of the industry and Cresco's position within it," said Charlie Bachtell, Chief Executive Officer of Cresco Labs. "Access to conventional bank capital gives us a powerful, non-dilutive tool to accelerate our strategy. As demonstrated by our recent Pennsylvania acquisition, we see significant opportunities to deploy capital into assets that enhance earnings, improve margins and create long-term shareholder value. This added flexibility positions us to drive growth, strengthen our balance sheet and support Cresco as we work toward broader access to U.S. capital markets and a future uplisting to a senior exchange."