Acreage Holdings enters amended, restated credit agreement

Acreage Holdings (ACRHF) announce that it has entered into an amended and restated credit agreement with a subsidiary of Canopy Growth Corporation (CGC) and a third-party lender, amending the amended and restated credit agreement dated June 3, 2024 among Acreage, High Street Capital Partners as borrower, and the other parties thereto. The New Lender advanced $65M with an original issue discount of 10%, being $6.5M. Approximately $48M of the amount advanced by the New Lender was used to repay amounts owing by Acreage pursuant to the Prior Credit Agreement to the non-Canopy lender. As a result, the Prior Lender has been repaid in full. The net proceeds of the loan to Acreage totals approximately $8M after closing costs and expenses. The Amended and Restated Credit Agreement provides for an annual interest rate of 13.5% and matures on September 13, 2027. Interest in favour of the New Lender will be paid in cash. Interest in favour of Canopy is payable in cash or in kind at Acreage’s option and will initially be payable in-kind. The Amended and Restated Credit Agreement also provides the New Lender with a board observer right.