Verano Holdings, a multi-state cannabis company, entered into an amendment to its existing credit agreement for additional funding of $120 million with an 18-month maturity. The amendment brings the total outstanding senior secured term loans under the credit facility to $250 million. The incremental credit provides non-dilutive funding of $120 million at an annual interest rate of 8.50% with an option for an additional $100 million term loan at the same non-dilutive rate.

Chicago Atlantic Advisors is the lead administrative agent and collateral agent for the facility, with AFC Gamma also funding $50 million of the $120 million tranche. Closing on the transaction is subject to customary conditions, contingencies and approvals.

“Disciplined capital stewardship has always been a focal point for Verano and a key driver of our signature bottom-line performance,” George Archos, founder and CEO of Verano, said. “Following the significant growth we delivered over the past two reported quarters, upsizing our credit facility supports further execution of our strategic growth plans and continued value creation for our shareholders. In partnership with Chicago Atlantic, and leveraging Verano’s strong fundamentals, we’ve again lowered our cost of capital on a non-dilutive basis. This transaction dovetails with our short- and long-term objectives to remain acquisitive and expand the Verano platform in both new and existing markets.”

“It’s been exciting to see Verano’s continued execution on its strategic vision, and we welcomed the opportunity to expand our partnership,” John Mazarakis, a partner at Chicago Atlantic Advisors, said. “The improved terms of the increased credit facility reflect Verano’s fundamental strengths and impressive operating performance. A steadfast commitment to profitable growth has always set Verano apart, and that was a key driver of this credit facility carrying one of the lowest costs of capital to-date in the cannabis industry.”

“We believe that Verano is one of the top multi-state cannabis operators, continually proving its industry leadership through strong execution and meaningful growth, both organically and through strategic acquisitions. Driven by its strong brand recognition, real estate ownership, business execution and experienced management, we believe that Verano is a top-tier credit,” Leonard M. Tannenbaum, CEO of AFC Gamma, said. “We are proud to partner with Verano to catalyze their next phase of growth.”

“We are pleased to expand our relationship with AFC Gamma as a cornerstone lender. We believe our improved cost of capital and ability to attract high-caliber institutional lenders like AFC Gamma is a testament to Verano’s continued growth, performance and position in the marketplace,” Archos said. “We appreciate AFC Gamma’s partnership as we continue to expand and enhance our business.”

With its commitment of an additional $50 million under the new credit facility tranche, AFC Gamma now holds a total of $60 million of Verano’s credit facility.