- A portion of the line of credit will be set aside and will be subjected to borrowing availability.
- KushCo recently added the former CEO of Green Thumb Industries to their advisory board.
KushCo Holdings recently made the decision to expand the services they offer CBD companies to the facilities in the United States. However, they are making ways with a new round of funding, thanks to Monroe Capital LLC. The fundraising deal, involving a five-year credit facility that is worth up to $50 million, just closed to help with additional acquisitions and growth, according to reports from Grizzle.
In this deal, KushCo ultimately gains access to a $35 million revolving line of credit. The rest of the funding – $15 million – will go into a second tranche, which will be subject to borrowing availability from Monroe, according to the terms of the deal. The funding round happened after a new internal retail CBD services division was launched by the company, leading them to an external partnership with C. A. Fortune. The partnership will provide clients with their entry into the CBD market.
Nick Kovacevich, the CEO of KushCo, stated that the partnership allows them to expand on many services and products to the industry. He added, “As the size of our customer’s business grows, it’s imperative to have an adequately sized credit facility that will increase as our business grows.”
Along with the closure of a multi-million-dollar credit facility, KushCo is adding a new member to their advisory board – Pete Kadens. Kadens was formerly the Chief Executive Officer for Green Thumb Industries, as he advises the company on their future plans for growth and acquisitions. Kadens originally left Green Thumb Industries behind last summer and has been in charge of the operation of the Kadens Family Foundation charity. He will be joining the advisory board this week.
So far, the advisory board includes Kadens, Tim Seymour (co-host of Fast Money), and Danny Moses, the latter of which inspired the events in the movie The Big Short.
KushCo has been working to establish itself as a listing on NASDAQ, though they already have a position with the OTC market. The company filed for the transition last month and is still waiting to hear a reply.