Colorado-based Mile High Labs, which claims to be the largest extractor of CBD in the world, has closed a US $65m term loan facility.
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.
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.”
Said Moses: “I was lucky enough to have met the Mile High Labs team last year and saw first-hand their drive to be the standard setter in the hemp extraction business.
“This financing represents one of the lowest cost debt deals I’ve seen in this market and is representative of what can happen when you have a strong management team, a solid business plan and the vision to be the global leader in a sector with so much opportunity.”
“With this funding in place and our biomass supply secured, it’s time to put our heads down and continue to lead the way in CBD quality, safety and compliance,” continued Roth. “Most analysts believe CBD will be one of the largest consumer markets in the world. There will be many winners in the CBD market, and we expect to be one of the largest.”Cannabis Business Worldwide