FARMACEUTICALRX Closes $34.0 Million In Debt Financing From Chicago Atlantic to Expand its Medical Marijuana Operations in Ohio
CHICAGO and PITTSBURGH, Feb. 08, 2022 (GLOBE NEWSWIRE) — FARMACEUTICALRX, one of the largest producers of premium organic medical marijuana products in the US market, (“FARMACEUTICALRX” or the “Company”), today announced that it has closed a $34 million senior secured term loan (the “Senior Term Loan”) provided by Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic”), a commercial real estate finance company, and other institutional lenders.
The Senior Term Loan proceeds will be used to complete the funding of the Company’s Ohio Level 1 cultivation and post-harvest facility, repay existing debt, fund equipment purchases, and for general working capital purposes. The Company brings its cultivation and processing methods from the FARMACEUTICALRX of Pennsylvania operations to the 100,000 square foot facility in East Liverpool, Ohio. FARMACEUTICALRX of Ohio currently also operates its FRX Health dispensary in East Liverpool, Ohio.
This funding allows us to take advantage of the tremendous opportunity in Ohio and to build on the momentum and market-leading position we developed in Pennsylvania. We continue to believe Ohio is a very attractive limited license state and the right market for us.
Rebecca Myers, CEO and Founder of FARMACEUTICALRX
We are excited to partner with the Chicago Atlantic team who believes in our strong cash flow generation, and revenue and profitability prospects.
“We are committed to cultivating and producing premium organic and craft medical marijuana products for our loyal customers and to being disciplined stewards of capital for our shareholders,” stated Myers.
Chicago Atlantic is excited to partner with FARMACEUTICALRX in Ohio on the completion of their 100,000-square-foot tier 1 cultivation facility that will bring additional jobs to East Liverpool, Ohio. We look forward to assisting with the company’s current and future growth.
John Mazarakis, Executive Chairman at Chicago Atlantic
Rebecca and her team are strongly committed to bringing differentiated, quality and organic products to the Ohio marketplace and are great examples of the management teams and organizations with whom Chicago Atlantic looks to partner.
FARMACEUTICALRX is the leading producer of premium organic medical marijuana products and the sole multi-state, vertically integrated producer of premium organic medical marijuana products in the US Market. FARMACEUTICALRX is focused on bringing research and development-based innovation to the medical marijuana sector. FARMACEUTICALRX develops premium organic medical marijuana products under its existing FARMACEUTICALRX brand. The Company’s suite of sub-branded products includes Burst of Wellness Vape products, TreePharm Vape and RSO products, Local Edibles Chocolates, and Open Mind organic, vegan and gluten free gummies. Our suite of sub-branded products combine the premium quality that FARMACEUTICALRX is known for, at a lower price point, with the goal of expanding the Company’s reach to a broader demographic of patients. The FARMACEUTICALRX affiliated companies are licensed to offer high quality medical marijuana products in Pennsylvania and Ohio, states with combined populations of more than 26 million people. FARMACEUTICALRX is led by a world-class team of scientists, healthcare, organic food and beverage and cannabis industry professionals who are driven by the discovery, development, and manufacturing of revolutionary, premium organic products delivered through its vertically integrated platform. From the Farm to the Future – Our innovation is Your Future Health. Learn more at www.FARMACEUTICALRX.com.
About Chicago Atlantic Real Estate Finance, Inc.
Chicago Atlantic Real Estate Finance, Inc. is a commercial real estate finance company that manages a diversified portfolio of real estate credit investments primarily in the cannabis space and is actively investing across the value chain. Led by a senior management team with extensive experience in real estate credit, direct lending, risk management and real estate acquisitions and development, Chicago Atlantic and its sponsor have created a leading cannabis lending platform. Chicago Atlantic intends to elect and qualify to be taxed as a REIT under Section 856 of the Internal Revenue Code of 1986. Chicago Atlantic is managed by Chicago Atlantic REIT Manager, LLC.