Cresco Labs has entered into a non-brokered credit agreement for a senior secured term loan in an initial aggregate principal amount of up to $100 million, with a mutual option to increase the size of the facility to a maximum of $200 million. The company expects to complete an initial drawdown of up to $100 million on or about Jan. 30, subject to the satisfaction of customary funding conditions.

The proceeds from the senior loan will be used to fund the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.

“This agreement reflects the strength and growth potential of the national platform Cresco has built as well as our ongoing commitment to execute a superior capital agenda for the benefit of shareholders,” Cresco Labs Co-Founder and CEO Charlie Bachtell said in a statement. “Through this deal, we have diversified the Company’s funding sources, improved our cost of capital in a non-dilutive manner and given ourselves flexibility in a dynamic capital environment. As we enter 2020 and our business continues to increase its positive free cash flow, Cresco is well-positioned to continue growing its foothold in the most strategic cannabis markets in the U.S., while building the most important company in the industry.”