Standard Wellness Achieves $10 Million Financing at Competitive Rates for Future Growth

Standard Wellness Secures $10 Million Credit Facility

Standard Wellness Holdings, LLC, a prominent multi-state operator in the cannabis industry, recently announced a significant financial milestone. The company has secured a $10 million credit facility from a well-known commercial bank, highlighting its strategic approach to refinancing and growth.

Competitive Financing Terms

This credit facility is structured as a ten-year term loan with a remarkable interest rate of 9.25%, amortizing over twenty years. This new financing will not only assist Standard Wellness in driving future growth initiatives but also reduce its heavier debt burden. Specifically, the company has utilized a portion of these funds to pay off higher-interest debt, which was previously at an eye-watering 13.5% and due to mature in the third quarter of 2026.

Jared Maloof, CEO of Standard Wellness, commented on this new financing deal, stating, "This new financing partnership underscores our financial partners' confidence in our business model and growth trajectory. With this facility, more than 75% of our debt now matures in 2033 or beyond, providing us with increased stability and flexibility to execute our long-term strategy."

Enhanced Financial Flexibility

The refinancing effort has not gone unnoticed by industry analysts, particularly Kyle Ciccarello, Vice President of Finance at Standard Wellness, who played a crucial role in this transaction. Ciccarello noted, "This refinancing reduces our weighted average cost of debt to below 9.75%. This facility, along with other recent refinancings executed by the Company, will deliver over $1.2 million in annual interest savings. These savings enhance our financial position, enabling us to reinvest in strategic growth opportunities."

These developments signify a critical step towards a more secure financial future for Standard Wellness, with the potential to expand its operations further and enhance its market presence in the cannabis sector. The refinancing aligns with broader trends in the industry, where companies are actively pursuing better financial strategies to remain competitive and sustainable.

A Commitment to Growth

Founded in 2017 in Ohio, Standard Wellness operates across multiple states, including Missouri and Utah, and has secured licenses for cultivation, processing, and dispensary operations. The company operates five retail locations under its brand, The Forest, and has made notable contributions to the cannabis industry, including making the first legal marijuana sale in Ohio and the first delivery to a pharmacy in Utah.

With approximately 350 employees, Standard Wellness is not only focused on profit but also on improving quality of life for its customers by providing safe and legal access to cannabis for both medical and recreational use. As the cannabis industry continues to evolve, Standard Wellness is well-positioned to capitalize on growth opportunities arising from legislative changes and increased market demand.

Conclusion

In conclusion, the $10 million credit facility marks a pivotal moment for Standard Wellness, reinforcing its commitment to growth, stability, and financial prudence. This strategic move will likely foster the company's ambitions to further expand its footprint in the rapidly growing cannabis market, ultimately benefiting its stakeholders, employees, and customers alike.