Green Leaf Medical secures $10 million debt deal, expands presence in core states
The transaction between Chicago Atlantic Group and Green Leaf Medical provides the company with cash to expand its operations in Virginia, where new legislation provides for five additional dispensary licenses. Green Leaf currently has an 82,000 square foot vertical (cultivation, extraction and retail) facility located in Richmond, Virginia.
In addition, the company plans to use the funds to acquire dispensaries in Pennsylvania, where it operates a 100,000 square foot cultivation and extraction facility.
2020 is the year of fundamentals. The markets have corrected and investors are no longer enamored by the number of licenses an operator has but rather evaluate cannabis investments on the quality of its management team and its ability to generate significant EBITDA.
Philip Goldberg, CEO of Green Leaf Medical
Green Leaf Medical, known for its brand gLeaf, operates medical cannabis cultivation, extraction and retail operations in four contiguous states in the mid-Atlantic region including Maryland, Pennsylvania, Ohio and Virginia with pending vertical applications in New Jersey and West Virginia.
Green Leaf is on pace to produce approximately 4,600 pounds of cannabis per month resulting in more than 200 SKU’s of gLeaf brand products. These products are distributed through its own dispensary locations as well as more than 100 dispensary partners.
The company, formed in 2014, has focused its growth in the mid-Atlantic region where it serves a population of 38 million.
Green Leaf Medical has deployed approximately $27 million to build its multi-state operation and has generated positive EBITDA since 2018. The company is expected to surpass $150 million annual revenue in 2021.
With no access to public market capital, private cannabis companies must have a strong focus on fundamentals to attract and secure sources of debt. “Chicago Atlantic Group is excited to partner with Green Leaf to support its expansion plans in the mid-Atlantic region. Their strong management team, efficient operations, brand and financials are exactly what we were looking for in our partners”, says John Mazarakis, Principal of Chicago Atlantic Group.
For more information please contact:
Green Leaf Medical, LLC
Chicago Atlantic Group
Source: Green Leaf Medical