CHICAGO and PITTSBURGH, Feb. 08 2022 (GLOBE NEWSWIRE) — FARMACEUTICALRXone of the largest producers of premium organic medical marijuana products on the U.S. market (“FARMACEUTICALRX” or the “Company”), today announced that it has entered into a senior secured term loan of $34 million (the “Primary Term Loan”) provided by Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic”), a commercial real estate finance company, and other institutional lenders.
Proceeds from the principal term loan will be used to supplement financing for the Ohio Tier 1 cultivation and post-harvest facility, repay existing debt, finance equipment purchases and for general fundraising purposes. rolling. The company is bringing its cultivation and processing methods from Pennsylvania’s FARMACEUTICALRX operations to the 100,000 square foot facility in East Liverpool, Ohio. FARMACEUTICALRX of Ohio also currently operates its FRX Health dispensary in East Liverpool, Ohio.
“This funding allows us to capitalize on the huge opportunity in Ohio and build on the momentum and market-leading position we have developed in Pennsylvania,” said Rebecca Myers, CEO and Founder of FARMACEUTICALRX. “We continue to believe that Ohio is a very attractive limited license state and the right market for us. We are delighted to partner with the Chicago Atlantic team who believe in our strong cash flow generation and revenue and profitability prospects. We are committed to cultivating and producing premium quality organic and artisanal medical marijuana products for our loyal customers and to being disciplined stewards of capital for our shareholders,” Myers said.
“Chicago Atlantic is thrilled to partner with FARMACEUTICALRX in Ohio on the completion of their 100,000 square foot Level 1 cultivation facility which will create additional jobs in East Liverpool, Ohio. We look forward to contributing to the company’s current and future growth,” said John Mazarakis, executive chairman of Chicago Atlantic. “Rebecca and her team are strongly committed to bringing differentiated, quality, organic products to the Ohio market and are great examples of the leadership teams and organizations that Chicago Atlantic seeks to partner with.”
FARMACEUTICALRX is the premier producer of premium organic medical marijuana products and the only vertically integrated, multi-state producer of premium organic medical marijuana products in the US market. FARMACEUTICALRX is focused on bringing research and development based innovation to the medical marijuana industry. FARMACEUTICALRX develops premium organic medical marijuana products under its existing FARMACEUTICALRX brand. The Company’s sub-brand product line includes Burst of Wellness Vape products, TreePharm Vape and RSO products, local edible chocolates and Open Mind organic, vegan and gluten-free gummies. Our sub-branded product line combines the premium quality that FARMACEUTICALRX is known for, at a lower price point, with the goal of extending the company’s reach to more patients. FARMACEUTICALRX affiliates are licensed to offer high quality medical marijuana products in Pennsylvania and Ohio, states with a combined population of over 26 million people. FARMACEUTICALRX is led by a world-class team of scientists, healthcare, organic food and beverage, and cannabis industry professionals who are driven by the discovery, development, and manufacturing of breakthrough, premium organic products. delivered through its vertically integrated platform. From farm to future – Our innovation is your future health. Learn more at www.FARMACEUTICALRX.com.
This press release contains forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring future business, operations, financial performance, prospects and other plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continues”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations regarding future events and financial trends that management believes may affect its financial condition, results of operations, business strategy and financial needs, as well as only on certain assumptions and analyzes made by the Company in light of experience and perception of historical trends, current conditions and expected future developments and other factors that management deems appropriate. Forward-looking information and statements involve and are subject to known and unknown assumptions and risks, uncertainties and other factors that may cause the Company’s actual events, results, performance or achievements to be materially different from future events, results. , performance and achievements expressed or implied by the forward-looking information and statements contained herein. Although the Company believes that the forward-looking information and statements contained herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that such forward-looking information and statements will prove to be accurate, and accordingly, readers are urged to rely on their own assessment of such risks and uncertainties and should not place undue reliance on such forward-looking information and statements. All forward-looking information and statements contained herein are made as of the date hereof, and except as required by applicable law, the Company undertakes no obligation and disclaims any intention to update or revise the information and statements. forward-looking statements contained herein or to update as to why actual events or results could differ or differ from those projected in the forward-looking information and statements contained herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable law.
About Chicago Atlantic Real Estate Finance, Inc.
Chicago Atlantic Real Estate Finance, Inc. is a commercial real estate finance company that manages a diversified portfolio of real estate finance investments primarily in the cannabis space and actively invests across the value chain. Led by a management team with extensive experience in mortgage lending, direct lending, risk management, and real estate acquisitions and developments, Chicago Atlantic and its sponsor have created a premier cannabis lending platform. Chicago Atlantic intends to elect and qualify to be taxed as a REIT under Section 856 of the 1986 Tax Code. Chicago Atlantic is managed by Chicago Atlantic REIT Manager, LLC.
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, concerning future events and the future results of the Company which are based on current expectations, estimates, forecasts and projections concerning the industry in which the Company operates and the beliefs and assumptions of the Company’s management. Words such as “address”, “anticipate”, “believe”, “consider”, “continue”, “develop”, “estimate”, “expect”, “pursue”, “aim”, “have the ‘intent to’, ‘may’, ‘plan’, ‘potential’, ‘project’, ‘research’, ‘should’, ‘target’, ‘shall’, variations of these words and similar expressions are intended to identify these statements prospective. These statements reflect the current views of the Company and its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance or achievements could differ materially from the results expressed or implied by such forward-looking statements. The information contained in this presentation is current only as of this date, and the company’s business or financial condition and other information contained in this press release may change after such date. The Company undertakes no obligation to update any forward-looking statements to reflect any event or circumstance occurring after the date of this release or facts or conditions currently unknown. You are urged to review and carefully consider all cautionary and other information, including statements under the heading “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission.
Factors that could cause actual results to differ materially from current expectations include, among others: changes in the Company’s business and investment strategy; the impact of COVID-19 on the Company’s business and the global economy; the ability of Chicago Atlantic REIT Manager, LLC (the “Manager”) to source suitable lending opportunities for the Company, actively monitor and manage the Company’s loan portfolio and implement the Company’s investment strategy the society ; the allocation of loan opportunities to the Company by the Manager and its affiliates; U.S. or state government actions and initiatives and changes in government policies and the execution and impact of such actions, initiatives and policies, including whether cannabis remains illegal under the federal law; the estimated growth and changing dynamics of the cannabis market; demand for cannabis cultivation and processing facilities; changes in public opinion regarding cannabis; changes in the value of the Company’s borrowings; default rates or declining recovery rates on the Company’s loans; the departure of any of the senior executives or key personnel supporting and assisting the Manager Company or its affiliates; the impact of and changes in government regulations, tax laws and rates, accounting guidelines and other similar matters; the ability of the Company to maintain the exclusion or exemption from registration of the Company under the Investment Company Act of 1940; and the Company’s ability to qualify and maintain the Company’s qualification as a real estate investment trust (“REIT”) for US federal income tax purposes.
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