Michigan-based Gage Growth in a press release said it raised $55 million of capital through a one-year secured loan to help finance retail acquisitions and growth in the state.
The annual interest rate of the loan is set at the greater of 7 percent plus the prime lending rate, or 10.25 percent, according to a news release.
Gage CEO Fabian Monaco said in the release that the deal, which is secured by a first lien on the company’s assets, provides the company with “maximum flexibility to execute on near-term acquisition opportunities.”
The financing comes as New York- and Toronto-based multistate operator TerrAscend is buying Gage in an all-stock deal initially valued at $545 million.
The $55 million loan was arranged by Canaccord Genuity Corp. and Chicago Atlantic.
Gage has operations in Michigan and Canada.
