08:36 AM EDT, 07/03/2024 (MT Newswires) -- Grown Rogue International Inc. ( GRUSF ) , a craft cannabis company, on Wednesday entered a secured drawdown promissory note agreement dated June 25, 2024, with ABCO Garden State, LLC , a New Jersey Class 1 licensed cultivator. As of the day and time of the release, Grown Rogue ( GRUSF ) owns 44% of ABCO, with an option to acquire an additional 26% of ABCO, subject to regulatory approval.

According to a statement, the key deal terms are as follows: Grown Rogue ( GRUSF ) will lend up to US$3 million to ABCO under the Note to support ongoing construction and working capital as ABCO ramps its operations. On June 25, 2024, Grown Rogue ( GRUSF ) advanced $500,000 to ABCO, representing the first drawdown under the Note.

Wednesday's statement also noted" The Note has preferential repayment, and interest on the outstanding principal will accrue at 10.5% per annum. The Note, including all accrued and unpaid interest, shall be due and payable on June 25, 2025.

GRIN said as it reaches the final stages of Phase I construction, this additional capital will be used to finish construction and provide the necessary working capital to become operational. It added Phase I work has included many of the necessary improvements required to accelerate Phase II completion such as full panel installation, the purchase of on-site HVAC equipment, and the fulfillment of fire safety requirements." said

CEO Obie Strickler said. "Phase I remains substantially on schedule and on budget, with final occupancy approvals expected later this month and sales anticipated to commence in the fourth quarter. Phase II construction is expected to be completed in the first quarter of 2025, with sales anticipated to commence in the second quarter of 2025. With both Phases complete and a total flowering canopy of near 16,000 square feet, we expect to be producing in excess of 1,000 pounds of whole flower per month in New Jersey."