iAnthus Capital Holdings, which owns, operates and partners with licensed cannabis operations throughout the U.S., entered into an agreement to provide a $2 million credit facility to GrowHealthy Holdings.

The facility has a term of twelve months and a blended interest rate of 12.5% over the term, initiating at a 5% annual rate until January 31, 2018 and escalating to 20% for the remainder of the term. The loan facility is secured by GrowHealthy’s real estate holdings and related assets at its Lake Wales cultivation and processing facility. As part of the agreement, iAnthus has been granted exclusive rights to negotiate a further strategic relationship with GrowHealthy.

GrowHealthy’s subsidiary, McCrory’s Sunny Hill Nursery, is one of the 12 current Florida Medical Marijuana Treatment Centers licensed to provide medical cannabis under Florida’s medical marijuana law.

GrowHealthy owns a cultivation and processing facility comprised of almost 200,000 square-feet on 33 acres in Lake Wales, FL, which at the time of licensure was the largest cultivation facility in the state.

GrowHealthy is currently negotiating lease agreements for its initial proposed dispensaries in the Tampa and West Palm Beach areas, and is expected to deliver to its first patients in November 2017.

“We are extremely impressed with GrowHealthy’s management team and the company’s cultivation operations, and we believe that GrowHealthy has the ability to become the preeminent provider of medical cannabis in one of the nation’s most populous states,” said Randy Maslow, president of iAnthus. “With more than 20 million residents and favorable demographics, Florida provides enormous potential for its licensed medical cannabis providers, and we look forward to working with GrowHealthy as it establishes itself as one of the leaders in this large and fast-growing market.”