Adam JacksonStandard Wellness Holdings LLC secured a $14 million senior secured credit facility from Advanced Flower Capital (NASDAQ: AFCG), the companies announced Thursday.
The vertically integrated cannabis company will use the funding to refinance existing debt, including full repayment of its debt facility with Focus Growth Capital Partners and early repayment of a seller note with Columbia Care, according to the announcement. That debt was incurred when Standard Wellness acquired the Cannabist dispensary in Springville, Utah.
Additionally, the funds will fully finance the acquisition of a dispensary license in St. Louis, though that acquisition remains subject to regulatory approval.
The new credit facility bears an interest rate of 12.5% with AFC, a longstanding lender to the cannabis industry, specifically privately owned companies.
Kyle Ciccarello, CFO of Standard Wellness, said the repayment of the Focus Growth debt and early retirement of the Columbia Care note “reflect Standard Wellness’s proactive approach to managing its financial obligations and optimizing its capital structure.”
The AFC credit facility will help Standard streamline its debt structure, eliminate legacy obligation and invest in strategic acquisitions, according to Maloof.
The St. Louis dispensary acquisition is described as a key component of the company’s long-term growth strategy.
Founded in 2017 in Ohio, Standard Wellness operates across Ohio, Missouri and Utah, and has cultivation, processing and dispensary licenses in Maryland. The company operates five retail locations under The Forest brand and employs approximately 350 people.
Standard made the first-ever legal marijuana sale in Ohio through its dispensary The Forest Sandusky and completing the first delivery to a Utah pharmacy in February 2020, according to the company.
Gramercy Capital Group LLC (through INTE Securities LLC) served as financial advisor, while Feuerstein Kulick LLP acted as legal counsel to Standard Wellness.
