Reich Bros Commercial Finance funds cannabis equipment lease

Geoff Miachika, Flower One chief financial officer, said: “As Flower One prepares to commence operations at our greenhouse and production facility, this lease financing provides us with additional financial flexibility.”

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 also includes a buyout right upon expiration of the term and early buyout options at months 13, 25 and 37, at the company’s discretion.

Flower One completed an initial draw of $10 million.

Reich Bros Commercial Finance invests capital with growing businesses that provide infrastructure or ancillary services to the cannabis industry. It makes senior secured loans from $500,000 to $30 million against real estate, equipment, intellectual property and branded products, predominately in approved US jurisdictions.