Grown Rogue International Inc (CNSX: GRIN) (OTCMKTS: GRUSF) (FRA: 1VF0) now has alot more cash at its disposal for expansion plans, corporate expenses and debt re-financing.
The Oregon-based cannabis cultivator revealed Monday that it has secured a US$7-million-dollar credit line from an unspecified commercial bank. This loan has a 9.2 per cent annual interest rate.
“We are pleased to be announcing the closing of this loan with a top 50 bank holding company in the United States at attractive terms,” founder and CEO, Obie Strickler, stated in a news release.
Grown Rogue started its marijuana journey over 15 years ago in Oregon’s Rogue Valley, cultivating small batches of medical cannabis.
Now, the grower is also active in New Jersey, Illinois and Michigan with plans to expand further into additional eastern American states. New Jersey weed sales started in December after Grown Rogue finished setting up an indoor cultivation site there.
Read more: Seth Rogen says he likes smoking weed everywhere except Singapore
Read more: Grown Rogue kicks off New Jersey sales after getting cultivation facility up and running
Cannabis stocks slide, but optimism remains
Major pot producers such as Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC) (FRA: 11L), Verano Holdings Corp (OTCMKTS: VRNOF) (FRA: 76U0), High Tide Inc. (CVE: HITI) (NASDAQ: HITI) (FRA: 2LYA) and Curaleaf Holdings Inc (TSE: CURA) (OTCMKTS: CURLF) observed their shares plummet by 20 to 30 per cent this month.
AYR Wellness Inc (OTCMKTS: AYRWF) stock performed even worse, dropping by over 47 per cent.
American lawmakers dragging their feet with federal rescheduling is one likely culprit for this widespread bearish trend. Meanwhile, Canada is known to be in desperate need of tax reform to make life feasible for suppliers.
But on a more positive note for growers, the financial analyst Atrium Research says weed stocks may be worth having another look at despite their recent terrible performance. The firm thinks regulatory progress in Canada and the U.S. combined with other factors may make them a worthwhile buy once again, eventually.
“We are starting to see a shift with many of the businesses resuming revenue growth and expanding margins,” Atrium said in a research report on Mar. 25. “Thus, we believe it is an opportune time to revisit the thesis behind some of these firms and the various changes happening in both the Canadian and U.S. markets.”
Grown Rogue was one of the “on our radar” companies mentioned in Atrium’s report. This stock had a rough month too, slipping by nearly 14 per cent.
