EAST LIVERPOOL, Ohio – One of the largest producers of premium organic medical marijuana in the U.S. market has secured $34 million in funding to complete work on its cultivation and processing facility in the East End of the city.
PharmaceuticalRX announced Tuesday that it has secured a $34 million senior secured loan provided by Chicago Atlantic Real Estate Finance Inc. to complete the Level 1 cultivation and post-harvest facility at the former Ferro building. Corp. on Harvey Ave. The financing will also be used to pay down existing debt, fund equipment purchases and provide general working capital, the company said.
“This funding allows us to capitalize on the huge opportunity in Ohio and build on the momentum and market leadership position we have developed in Pennsylvania,” said Rebecca Myers, CEO and Founder of PharmaceuticalRX.
“We continue to believe that Ohio is a very attractive limited license state and the right market for us. We are thrilled to partner with the Chicago Atlantic team who believe in our strong cash flow generation and revenue and profitability outlook,” said Myers.
The company also operates its FRXHealth dispensary on Dresden Avenue in the city, and a medical marijuana cultivation and processing facility in Farrell, Pennsylvania.
John Mazarakis, executive chairman of Chicago Atlantic, called Myers and his team “great examples of leadership teams and organizations that Chicago Atlantic seeks to partner with. Chicago Atlantic is delighted to partner with FarmaceuticalRX in Ohio on the completion of their facility which 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 an initial public offering of 6,250,000 shares at $16 a share. The closing brought in total gross proceeds of approximately $100 million for the company, which began trading on the Nasdaq under the symbol REFI on December 8, 2021.
Since its IPO, the REIT has specialized in funding medical marijuana projects across the country. On January 3, the company announced that it was the sole lender supporting MEDfarms LLC, a Michigan-based vertically integrated cannabis company.
Then, on Jan. 27, Chicago Atlantic announced $10 million in funding for Florida-based Sanctuary Medicinals LLC, which operates five dispensaries and plans to open 18 more.
On Tuesday, shares of Chicago Atlantic closed at $18.98, down 1%. Since its IPO, the REIT’s stock has risen 15%.
FarmaceuticalRX announced on February 2 that it had received its final certification to begin operations as a medical marijuana cultivator from the Ohio Department of Commerce.
In April 2021, the company announced that it had secured debt financing of 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 press release from the company. The Company’s sub-brand 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 affiliates are licensed to offer medical marijuana products in Pennsylvania and Ohio, states with a combined population of over 26 million people.
Pictured: In this October 2020 file photo, renovations resume on the former Ferro Corp building. in East Liverpool, where FRX plans to operate a medical marijuana cultivation and processing plant.
Copyright 2022 The Business Journal, Youngstown, Ohio.