MEDFORD, Ore. – Grown Rogue International Inc., a craft cannabis company, closed a US$7.0M credit facility with a national, FDIC-insured commercial bank (the “Bank”). The Company intends to use the proceeds to support existing growth initiatives, provide additional working capital, and refinancing a small amount of existing debt. The obligations owing under the Credit Facility are secured by way of a general security agreement.
The credit facility has a term of four years and bears interest at a rate equal to the greater of a) SOFR plus 4.9% and b) 9.0% per annum. Based on the current SOFR rate of 4.3%, this implies a current interest rate of 9.2% per annum. The facility amortizes over a six -year period and there are no prepayment penalties. Interest will be paid on a monthly basis.
“We are pleased to be announcing the closing of this loan with a top-50 bank holding company in the United States, at attractive terms” said Obie Strickler, CEO of Grown Rogue. “We appreciate the support the bank is demonstrating in our business, and we look forward to building upon this new banking relationship.”
About Grown Rogue
Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) is a craft cannabis company operating in Oregon, Michigan, New Jersey, and Illinois, focused on delighting customers with premium flower and flower-derived products at fair prices. The company’s roots are in Southern Oregon, where it has proven its capabilities in the highly competitive and discerning Oregon market. The company’s passion for quality product and value, combined with a disciplined approach to growth, prioritizes profitability and return on capital without sacrificing quality. The company’s strategy is to pursue capital efficient methods to expand into new markets, bringing craft-quality product at fair prices to more consumers. The company also continues to make modest investments to improve outdoor craft cultivation capabilities in preparation for eventual interstate commerce.
