Acreage Holdings obtains a $ 150 million credit facility at



NEW YORK, December 16, 2021 (GLOBE NEWSWIRE) – Acreage Holdings, Inc. (“Area”) (CSE: ACRG.AU, ACRG.BU), (OTCQX: ACRHF, ACRDF), a vertically integrated multi-state operator of cannabis cultivation and retail facilities in the United States, today announced that it has secured a $ 150 million credit facility (the “Credit Facility”) with AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC Gamma”) and Viridescent Realty Trust, Inc. (“Viridescent”). Under the Credit Facility, $ 100 million is available for immediate use and $ 50 million additional dollars are available in future periods under an accordion option committed upon reaching certain predetermined milestones. Acreage intends to use the proceeds of the credit facility to fund expansion initiatives, repay existing debt and provide additional working capital.

“This funding is a strong recognition of the important work our team has done over the past year to position Acreage both for long-term success and as a leader in our industry,” said Steve Goertz, Chief Financial Officer of Acreage. “This non-dilutive source of capital further enhances our balance sheet and provides us with increased financial flexibility as we continue to focus on profitability and accelerating growth in our core markets to maximize shareholder value. We are delighted to be working with AFC Gamma and Viridescent and look forward to continuing our partnership as we continue to strengthen our operations. “

“We are impressed with the efforts Acreage’s management team has made to improve its balance sheet, thereby strengthening its ability to execute on its growth plan,” said Leonard M. Tannenbaum, CEO of AFC Gamma. “With the divestiture of their non-performing assets and their presence in very attractive limited license states, including their recent entry into Ohio, we are very excited about the opportunity for Acreage and look forward to working with them in 2022 and beyond. “

“The Viridescent team is excited to work with Acreage to provide the funding necessary for its future growth as it continues to execute its refocused strategy,” said Rob Holmes, CEO of Viridescent. “We believe Acreage is extremely well positioned with its current operational footprint, and we look forward to strengthening our partnership as they continue to expand their presence in this rapidly evolving industry. “

The credit facility will bear interest at 9.75% per annum, payable monthly in arrears, with a maturity date of January 1, 2026.

AFC Gamma has committed $ 60 million (with an additional $ 10 million syndicated to an affiliate) of the $ 100 million available for immediate use under the credit facility and $ 30 million will be held by co-agent Viridescent . The loan is secured by first mortgages on the fully owned real estate of Acreage and other commercial collateral. AFC Agent LLC served as the administrative agent for the transaction.

Kevin Murphy, Chairman of the Board of Directors of Acreage, is Chairman and Chairman of the Board of Directors of Viridescent. Viridescent’s participation in the credit facility constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101”) of the Canadian Securities Administrators. Acreage relied on exemptions from the formal assessment and minority shareholder approval requirements of NI 61-101. Acreage is exempt from the formal valuation requirement contained in sections 5.5 (b) of MI 61-101 because Acreage does not have any securities listed on a prescribed stock exchange. Acreage is exempt from minority shareholder approval requirements in accordance with paragraph 5.7 (1) (f) of NI 61-101, as the interest of the related party in the credit facility is on the same terms as AFC Gamma, an individual at arm’s length from Acreage. The credit facility has been negotiated between Acreage and AFC Gamma, is on reasonable commercial terms and neither the principal amount nor interest due under the credit facility is convertible or repayable through the issuance of Acreage securities. The credit facility was approved by Acreage’s board of directors, Kevin Murphy having recused himself. Further details will be included in a material change report to be filed by Acreage. The material change report will not be filed more than 21 days prior to the closing of the credit facility due to the timing of the simultaneous announcement and closing of the credit facility.

In connection with the closing of the credit facility, Acreage amended the terms of its subsidiary’s $ 33 million credit facility announced on September 29, 2020 to: (i) extend the maturity date thereof from September 28, 2023 to April 1, 2026, and (ii) provide that the interest accrued from December 1, 2022 may, at the borrower’s choice, be paid in kind and added to the principal of the loan to be paid when the loan becomes due and payable or refunded.

About Acreage Holdings, Inc.

Acreage is a multi-state operator of cannabis cultivation and retail facilities in the United States, including the company’s national retail store brand, The Botanist. With its main address in New York City, Acreage’s wide range of cannabis products available nationally and regionally include award-winning brand The Botanist, premium brand Superflux in Illinois, Ohio and Massachusetts, highly recognizable brand Tweed, the Prime medical brand in Pennsylvania. , the Innocent brand in Illinois, and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products across the United States Since its founding in 2011, Acreage has focused on building and expanding operations to create a transparent, consumer-centric brand experience. . Learn more about www.acreageholdings.com and follow us on Twitter, LinkedIn, Instagram, and Facebook.

For more information and documents relating to Acreage and Canopy Growth Corporation’s plan of arrangement, please visit: https://investors.acreageholdings.com/acreage-canopy-deal/

About AFC Gamma, Inc.

AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender to leading cannabis companies with strong operations and cash flow prospects, real estate security and other collateral, and locations in states with fundamentals of supply and demand and enabling legislative environments. AFC Gamma’s platform offers innovative and personalized financing solutions through senior loans, mortgages, construction loans and bridge financing. The company’s management team has over 100 years of combined experience in managing investments and disciplined credit investing through a range of economic cycles.

About Viridescent Realty Trust, Inc.

Viridescent Realty Trust, Inc. is a commercial real estate finance company focused on creating, structuring, underwriting and managing senior secured loans for established companies operating in the cannabis industry. With over 25 years of direct experience in the cannabis industry and 75 years of combined experience in private credit, mortgage lending, retail, real estate acquisitions and development, investment advice, management risk and consulting, Viridescent’s vast knowledge and network in the cannabis industry positions it as a strategic and valuable partner to provide personalized and industry-tailored financing solutions.

Forward-looking statements and non-GAAP measures

This press release and each of the documents referred to herein contain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws in Canada and the United States, respectively. All statements, other than statements of historical fact, included in this document are forward-looking information, including, for greater certainty, statements regarding profitability, accelerating growth in our core markets and maximizing profitability. shareholder value. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “Estimates”, “intention”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or state that certain actions, events or results “may”, ” could “,” “be”, “could” or “will” be taken, occur or be achieved.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Acreage or its subsidiaries to be materially different from the future results, performance or achievements expressed. or implied by any forward-looking statements or information contained in this press release. The risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including but not limited to limit, funding and liquidity risks, and risks disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2020, dated March 25, 2021 and other Company public documents , in each case filed with the SEC on EDGAR www.sec.gov and with the Canadian Securities Administrators and available on Acreage’s issuer profile on SEDAR at www.sedar.com. Although Acreage has attempted to identify material factors which could cause actual results to differ materially from those contained in forward-looking information, there may be other factors which may cause results to be inaccurate. those anticipated, estimated or planned.

Although Acreage believes that the assumptions and factors used in the preparation of forward-looking information or forward-looking statements in this press release are reasonable, such information should not be relied on unduly and no assurance can be given that such events will occur within the disclosed time frame or not at all. Forward-looking information and forward-looking statements included in this press release are made as of the date of this press release, and Acreage assumes no obligation to publicly update such forward-looking information or forward-looking statements to reflect new information, events. subsequent or otherwise, unless required by applicable securities laws.

Neither the Canadian Securities Exchange nor its regulatory services provider has reviewed and accepts no responsibility for the adequacy or accuracy of the contents of this press release.

For more information, contact:

Steve goertz
Financial director
[email protected]

Courtney van alstyne
MATTIO communication
[email protected]


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