MedMen Enterprises closed a C$93.8 million ($73.2 million) senior secured term loan facility with funds managed by Hankey Capital and with an affiliate of Stable Road Capital as the largest loan participant

The principal amount under the facility will accrue interest at a rate of 7.5% per year, paid monthly, with a maturity date of 24 months following the date of closing on October 1, 2018. The facility will be used for acquisitions, capital expenditures and general corporate purposes.

“This industry is more investable than ever, and this loan is reflective of that progress. Hankey Capital and Stable Road Capital’s knowledge of this sector and their creativity allowed us to structure one of the first true senior secured loans in cannabis,” said MedMen Co-Founder and CEO Adam Bierman. “Our operations in the primary markets of California, Nevada and New York are robust, and now we are turning our attention to the most promising and strategic markets across the country and the industry.”

The facility comes on the heels of a recent bought deal that raised C$86 million ($67 million). MedMen may repay the balance of the facility at any time and from time to time, in whole or in part, with a prepayment penalty of 1.0% of the outstanding principal amount repaid if repaid before December 31, 2019.

Los Angeles-based MedMen Enterprises is a cannabis company in the U.S. with assets and operations across the country.

Hankey Capital is a single-family office based in Southern California.

Venice, CA-based Stable Road Capital is a single-family office employing an opportunistic approach to fundamental value investing.