Reich Bros to Provide $30MM Financing to Cannabis Cultivator Flower One

Reich Bros Commercial Finance signed a master lease agreement with cannabis cultivator Flower One Holdings for lease financing of up to $30 million.

The funds will be used for certain equipment at the company’s 455,000 square-foot greenhouse and production facility in North Las Vegas, NV.

“As Flower One prepares to commence operations at our greenhouse and production facility, this lease financing provides us with additional financial flexibility,” said Geoff Miachika, Flower One chief financial officer.

The agreement has a five-year term, with the first 12 monthly payments being the equivalent of interest only, followed by forty-eight equal payments, such that all amounts advanced under the lease facility are fully amortized by month 60. The agreement also includes a buyout right upon expiration of the term and early buyout options at months 13, 25 and 37, at the company’s discretion.

Flower One completed an initial draw of $10 million.

Reich Bros Commercial Finance invests capital with growth-oriented businesses that provide infrastructure or ancillary services to the cannabis industry. It makes senior secured loans against real estate, equipment, intellectual property and branded products, predominately in approved U.S. jurisdictions, and can structure financings from $500,000 to $30 million.

Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.