East Liverpool Medical Marijuana Company Receives $34M Infusion
EAST LIVERPOOL, Ohio — One of the largest producers of premium organic medical marijuana in the U.S. market has secured $34 million in financing to finish work on its cultivation and processing facility in the city’s East End.
FarmaceuticalRX on Tuesday announced it had closed on a $34 million senior secured loan provided by Chicago Atlantic Real Estate Finance Inc. to complete the Level 1 cultivation and post-harvest facility in the former Ferro Corp. building on Harvey Avenue. The funding will also be used to repay existing debt, finance equipment purchases, and provide general working capital, the company said.
“This funding allows us to take advantage of the tremendous opportunity in Ohio and to build on the momentum and market-leading position we developed in Pennsylvania,” said Rebecca Myers, CEO and founder of FarmaceuticalRX.
“We continue to believe Ohio is a very attractive limited license state and the right market for us. We are excited to partner with the Chicago Atlantic team who believes in our strong cash flow generation and revenue and profitability prospects,” Myers stated.
The company also operates its FRXHealth dispensary on Dresden Avenue in the city, and a medical marijuana cultivating and processing plant in Farrell, Pa.
John Mazarakis, executive chairman of Chicago Atlantic, called Myers and her team “great examples of the management teams and organizations with who Chicago Atlantic looks to partner. Chicago Atlantic is excited to partner with FarmaceuticalRX in Ohio on the completion of their facility that will bring additional jobs to East Liverpool,” he said.
In December, Chicago Atlantic – classified as a real estate investment trust, or REIT – announced it had closed on an initial public offering of 6,250,000 shares at $16 per share. The closing yielded total gross proceeds of approximately $100 million for the company, which began trading on Nasdaq under the ticker REFI on Dec. 8, 2021.
Since going public, the REIT has specialized in financing medical marijuana projects across the country. On Jan. 3, the company announced it acted as the sole lender to support MEDfarms LLC, a vertically integrated cannabis company based in Michigan.
Then, on Jan. 27, Chicago Atlantic announced $10 million in funding for Florida-based Sanctuary Medicinals LLC., which operates five dispensaries and has plans to open 18 more.
On Tuesday, Chicago Atlantic shares closed at $18.98, down 1%. Since going public, the REIT’s stock is up 15%.
FarmaceuticalRX announced Feb. 2 it had received its final certification from the Ohio Departmernt of Commercce to commence operations as a medical marijuana cultivator.
In April 2021, the company announced it had closed on debt financing up to $21 million from AFC Gamma, which trades on Nasdaq under the symbol AFCG.
FarmaceuticalRX develops medical marijuana under its existing FarmaceuticalRX brand, according to a company press release. The company’s sub-branded products include Burst of Wellness Vape products, TreePharm Vape and RSO products, Local Edible Chocolates and Open Mind organic, vegan and gluten-free gummies.
FarmaceuticalRX and its affiliated companies are licensed to offer medical marijuana products in Pennsylvania and Ohio.
Pictured: In this file photo from October 2020, remodeling work resumes on the former Ferro Corp. building in East Liverpool, where FRX plans to operate a medical marijuana growing and processing plant.
Copyright 2024 The Business Journal, Youngstown, Ohio.
