The acquisition is contingent upon receiving necessary approvals from the Illinois Department of Agriculture, with the closing expected to occur within five business days of such approvals. Following the acquisition, GRMA plans to provide a loan facility ranging from $1 million to $2 million to support Sea Craft's startup costs and working capital needs, with a competitive interest rate of 10% per annum.
In conjunction with this acquisition, Sea Craft has secured a lease for a fully constructed cannabis production facility in Dwight, Illinois, previously operated by PharmaCann, Inc. This facility is expected to commence operations in the second quarter of 2026, with product availability targeted for the fourth quarter of the same year. Grown Rogue's CEO, Obie Strickler, expressed enthusiasm about entering the Illinois market in a capital-efficient manner, highlighting the significant cost and time savings compared to traditional new-build projects.
The company has also completed a $3 million preferred equity financing to support Sea Craft's projected capital needs, which includes a 15% cumulative return for investors. This financing allows for conversion into common units of GRMA or subordinate voting shares of Grown Rogue, providing flexibility for investors.
Overall, this strategic move positions Grown Rogue to leverage its operational expertise and capitalize on the growing demand for cannabis products in Illinois, while also enhancing its financial stability and growth potential.
