MJBizMag July 2022 - 16

COMPANY NEWS U.S., Canada & International by MJBizDaily & Hemp Industry Daily Staff
U.S. DEVELOPMENTS
$600M Lawsuit Can Proceed
Against Acreage, Judge Says
A $600 million lawsuit targeting
multistate marijuana operator
Acreage Holdings can proceed to
trial, a New York state judge ruled.
The suit, filed by David Feder
and the investor group EPMMNY,
alleges that New York-based Acreage
and more than a dozen other
defendants engaged in an illegal
scheme that deprived EPMMNY of
a 25% interest and management
role in the then-prospective New
York Canna medical marijuana
business.
Chicago Atlantic Increases
Credit Facility to $65M
Marijuana industry real estate
lender Chicago Atlantic Real
Estate Finance increased the size
of its revolving credit facility by
$20 million to total $65 million.
The Illinois-based company
already had increased the size of
the revolving credit facility from
$10 million to $45 million.
Ascend Resolves Suit, Buys
MedMen NY for $88 Million
New York-based multistate operator
Ascend Wellness Holdings resolved
a legal dispute with Los Angelesheadquartered
MedMen Enterprises
by agreeing to pay an additional
$15 million for MedMen's medical
cannabis operation in New York.
The total acquisition price now is
$88 million for a 99.99% interest in
a vertical operation that includes
a cultivation facility in Utica and
dispensaries in Buffalo, Long Island,
Manhattan and Syracuse, according
to a news release.
Ascend paid a deposit of
$4 million and will pay $74 million
at closing. The company said it will
make a subsequent payment of
16 July 2022 | MJBizMagazine
$14 million upon the first sale of
recreational cannabis in a MedMen
NY dispensary.
Additionally, Ascend Wellness
tacked on $36.5 million of additional
borrowing to its existing
senior secured credit facility.
AFC Gamma Gets
$60M Revolving Loan
Marijuana industry lender AFC
Gamma said it secured a revolving
credit facility worth at least
$60 million from two federally
insured banks.
The Florida-based company did
not identify the banks but said they
have combined assets of more than
$70 billion.
AFC Gamma said it plans to use
the capital to bankroll unfunded
loans to existing borrowers as well
as to make new loans.
The company said it terminated
a previous revolving credit facility
worth $75 million.
Glass House to Acquire
Three Retail Locations
Vertically integrated California
cannabis company Glass House
Brands is acquiring three retail
locations in the state from Natural
Healing Center (NHC) in a deal
worth more than $22.6 million.
Two of the NHC locations-in
Lemoore and Morro Bay-already
are open, Glass House said in a
news release.
Glass House is paying roughly
$22.6 million for those two locations,
including $5.7 million in cash
and the remainder in stock.
The third location, in Turlock, is
under construction with plans to
open in the third quarter of 2022.
Glass House will acquire that
store when it opens, paying six
times the location's annualized
earnings before interest, taxes
depreciation and amortization
during its sixth full quarter of
operations.
Fluresh Arranges $48M
in New Debt, Refinancing
Vertically integrated Michigan
cannabis operator Fluresh
announced $25 million in new
debt from an unspecified
" federally regulated commercial
bank headquartered in southeast
Michigan, " alongside a $23 million
debt refinancing from the same
lender.
Proceeds have been used " to
retire (Fluresh's) existing private
placement debt, as well as to pay
fees and expenses associated with
the transaction, " the company said.
The $23 million debt refinancing is
for Fluresh's property in Grand Rapids,
which is " owned by a real estate
development company managed by
two of Fluresh's founders. "
Cresco Labs Secures $38M
in N.Y. Facility Tax Breaks
Chicago-based Multistate cannabis
operator Cresco Labs succeeded
in its push to get $38 million in
tax breaks for a planned cannabis
cultivation and manufacturing
facility in Ulster County, New York.
The board of the Ulster County
Industrial Development Agency
(UCIDA) voted unanimously to
approve the $27.9 million reduction
in property taxes over 15 years
as well as $10 million in sales-tax
exemptions.
IIP Provides $45 Million
in Funding to PharmaCann
Marijuana real estate investment
trust Innovative Industrial
Properties (IIP) announced
$45 million worth of funding to
MJBizMag July 2022

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