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Reich Bros CF Provides Cannabis Firm Equipment Lease Financing Up to $30MM

February 12, 2019, 07:20 AM

Flower One Holdings Inc. announced it has entered into a Master Lease Agreement with Reich Bros Commercial Finance, for up to $30 million in lease financing for equipment at its 455,000-square-foot greenhouse and production facility in North Las Vegas, NV.

"As Flower One prepares to commence operations at our greenhouse and production facility, this lease financing provides us with additional financial flexibility," said Geoff Miachika, Flower One Chief Financial Officer.

The agreement has a five-year term, with the first 12 monthly payments being the equivalent of interest only, followed by 48 equal payments, such that all amounts advanced under the lease facility are fully amortized by month 60.  The agreement includes a buyout right upon expiration of the term, and early buyout options at months 13, 25 and 37, at the company's discretion. The company has completed an initial draw of $10 million.

Flower One Holdings is focused on quickly becoming the leading cannabis cultivator, producer and innovator in the Nevada market. It owns and operates a 25,000-square-foot cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products. The company is also rapidly converting its 455,000-square-foot greenhouse and production facility, which is the largest in Nevada, for cultivating and processing high-quality cannabis at scale.
Reich Bros Commercial Finance invests capital with growth-oriented businesses that provide infrastructure or ancillary services to the cannabis industry. Reich Bros Commercial Finance makes senior secured loans against real estate, equipment, intellectual property and branded products, predominately in approved U.S. jurisdictions. Reich Bros Commercial Finance provides creative, flexible capital solutions for legal cannabis operations including equipment financing, working capital loans and expansion financing.

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