A day after Canadian cannabis company Canopy Growth Corp. exercised its option to acquire Acreage Holdings, the American multistate operator announced a private placement with institutional investors to raise $10 million.
The offering, priced at $833 per unit, is expected to close by Thursday and subject to customary closing conditions, according to a Wednesday news release.
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The proceeds are earmarked for working capital and general corporate purposes as Acreage faces what it called “deteriorating financial” conditions.
Defaulting on loans
Acreage said in the release it has explored numerous funding options the past several months “to continue ongoing operations” and “service its outstanding debt obligations.”
Citing a lack of funding options, unfavorable market conditions and high debt, Acreage said it has defaulted on outstanding debt
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