Standard Wellness Closes $14 Million Credit Facility to Fuel Expansion and Eliminate Debt

Standard Wellness Secures Funding for Growth

In a significant development for the cannabis industry, Standard Wellness Holdings, LLC has secured a $14 million credit facility from Advanced Flower Capital Inc. This move is part of the company’s strategy to retire existing debts and accelerate its growth initiatives across multiple states.

The funding will be particularly crucial in refinancing some of Standard Wellness's existing debts, including the complete repayment of a facility provided by Focus Growth Capital Partners, as well as an early settlement of a seller note linked to their acquisition of a dispensary in Utah. Additionally, it will finance the acquisition of a new dispensary license in Saint Louis, Missouri, although this acquisition is pending regulatory approval.

This credit facility, which carries a 12.5% interest rate, is a testament to the confidence that Advanced Flower Capital has in Standard Wellness's business model. Jared Maloof, Chief Executive Officer of Standard Wellness, expressed enthusiasm about this partnership, highlighting how it allows the company to streamline its financial obligations while focusing on critical strategic acquisitions.

“Working with AFC is essential for our growth path,” Maloof stated. “This funding helps us eliminate legacy obligations and invest in our expansion plans.” He emphasized the importance of the new dispensary license in Saint Louis, as it reflects the company’s long-term vision of growth within the cannabis market.

The deal has not gone unnoticed by Advanced Flower Capital, with CEO Dan Neville remarking on Standard Wellness’s strong track record in operational excellence. He believes this financing will support Standard Wellness in achieving its growth objectives, solidifying its place as a key player in the cannabis sector.

Furthermore, Kyle Ciccarello, Chief Financial Officer of Standard Wellness, praised the strategic financial planning that this move represents. “The repayment of the Focus Growth debt and the early retirement of other obligations showcases our proactive management approach,” Ciccarello noted.

Standard Wellness, founded in 2017 in Ohio, has established itself as a vertically integrated cannabis company operating in several states, including Missouri and Utah. With licenses for cultivation, processing, and retail, the company has been at the forefront of the cannabis movement. Their first legal marijuana sale in Ohio set industry milestones and their expansion continues with plans for new retail locations.

Employing nearly 350 people, Standard Wellness aims to improve quality of life through legal cannabis access, supporting both medical and adult use. The company's operations are grounded in compliance with state laws, making it a responsible player in the industry.

With the backing of a solid financial partner like Advanced Flower Capital, Standard Wellness is poised to take significant steps towards expanding its footprint across key markets in the U.S. For the wider cannabis industry, this financing signifies not just confidence in one company’s growth but an ongoing investment in the sector’s overall potential for development and profitability.

As this landscape continues to evolve, the successful closing of this credit facility may very well set a precedent for future investments in the thriving cannabis market, illustrating the industry's capacity for growth driven by strategic financial planning and operational excellence.