Marijuana MSO Standard Wellness secures $14M credit line to refinance debt

Marijuana multistate operator Standard Wellness Holdings has received a $14 million senior secured credit line from Advanced Flower Capital to refinance existing debt.

According to a Thursday news release, the Ohio-based MSO’s debt repayment will include fully meeting its obligation with New York-headquartered FocusGrowth Capital Partners as well as the early payment of a seller note The Cannabist Co. for the 2024 acquisition of a medical marijuana dispensary in Springville, Utah.

The operator also said it will use the financing for a dispensary acquisition in St. Louis.

The new credit line through Advanced Flower Capital, a commercial mortgage cannabis real estate investment trust based in West Palm Beach, Florida, bears an interest rate at 12.5%.

“This credit facility allows us to streamline our debt structure, eliminate legacy obligations, and invest in strategic acquisitions, including a new dispensary license in Saint Louis, a key component of the company’s long-term strategy,” Standard Wellness CEO Jared Maloof said in a statement.

“This transaction strengthens our balance sheet and provides the capital necessary to execute our growth strategy and expand our footprint in key markets.”

Standard Wellness said in December it had secured a $10 million credit line from an undisclosed financier.

The company said it planned to use that financing to repay some higher-cost debt that carries a 13.5% interest rate and matures in the third quarter of 2026.

In connection with the Advanced Flower Capital transaction, Gramercy Capital Group, through INTE Securities, served as financial adviser, and Feuerstein Kulick as legal counsel. The latter three entities are all based in New York.