15 April 2019 | News
Non-dilutive financing from MGG Capital among the largest private debt deals in cannabis market history
Mile High Labs, the largest extractor of CBD in the world, achieved another historic financing event with the close of a $65MM term loan facility, one of the largest non-dilutive capital raises in the sector to date.
The financing comes on the heels of the largest Series A equity raise in cannabis market history, completed during the fourth quarter of 2018.
"Following the signing of the Farm Bill in late 2018, we started seeing speculators take out significant portions of the available hemp supply. So we acted decisively to secure the single largest source of high-quality biomass available," said Jon Hilley, CFO of Mile High Labs.
"It is quite literally a mountain of hemp – millions of pounds – and this funding guarantees we can continue to meet the increasing demand for CBD from our customers."
Jason Roth, CEO of Mile High Labs, added, "I want to take a moment to thank two groups who made this possible. The first is our farm partners who trust and believe in us – we greatly appreciate your support and hard work. The second is MGG Investment Group, an incredibly sharp group of investment professionals who worked with us at breakneck speed to get this deal done. MGG is one of the most thorough, thoughtful and commercially minded debt funds I've come across – they are great partners who understand our vision and want to support it."
These non-dilutive deals bests most of the deals being done on the market today due to its low cost and speed of execution. Investor Danny Moses, best known for his portrayal in The Big Short, is an investor in Mile High Labs and also consulted with MGG on this financing.