MEDFORD, Ore. – September 15, 2025 – Grown Rogue International Inc. (CSE: GRIN, OTC: GRUSF) has announced a significant financial maneuver designed to accelerate its strategic growth trajectory. The flower-forward cannabis company has secured an additional US$5 million in funding, expanding its existing senior secured credit facility to a total of US$12 million. This substantial infusion of capital is earmarked to support key expansion initiatives, particularly within the burgeoning markets of New Jersey and Illinois.
Enhanced Financial Firepower for Growth
The newly acquired US$5 million represents an incremental tranche to Grown Rogue’s senior secured credit facility, which was provided by a national, FDIC-insured commercial bank. This latest funding comes with a specific interest rate of 7.52% for the new funds, contributing to a blended interest rate of 7.84% across the entire US$12 million facility. The amended terms outline a four-year loan term, featuring an annual principal amortization of 16.7%, with the remaining 33.3% of the balance due at maturity. This structure provides Grown Rogue with a defined financial roadmap for managing its increased debt obligations.
Strategic Expansion in Key Markets
The proceeds from this expanded credit facility are strategically allocated to fuel Grown Rogue’s aggressive growth plans. A primary focus will be the expansion of its New Jersey affiliate. The company’s New Jersey operation, ABCO Garden State LLC, has demonstrated robust performance, reporting US$2.65 million in revenue and US$1.29 million in Adjusted EBITDA in the second quarter of 2025. The additional capital will support further development and operational enhancements in this vital East Coast market. Concurrently, funds will be directed towards the buildout of a new cultivation facility in Illinois, a market that presents significant potential for high-quality cannabis producers.
Operational Strength and Financial Agility
Underpinning these ambitious expansion plans is Grown Rogue’s established operational foundation in Oregon and Michigan. The consistent performance and healthy cash flows generated from these existing operations comfortably support the company’s current and expanded debt obligations. In addressing potential investor concerns about taking on additional debt, CEO Obie Strickler emphasized the attractiveness of the facility’s terms, stating they are among the most favorable currently available to cannabis operators and are aligned with market rates in other industries. This bolstered financial position not only supports current growth projects but also provides the company with critical agility to act decisively on strategic opportunities that may arise in the current market environment.
Navigating the Evolving Cannabis Landscape
The cannabis industry continues to be a dynamic sector, marked by evolving legal frameworks, market consolidation, and a persistent need for efficient capital management. Access to robust financing solutions like expanded credit facilities is becoming increasingly vital for companies aiming for sustained growth and market share. The trending theme of industry consolidation underscores the importance of capital efficiency and strategic funding. Grown Rogue’s disciplined approach, prioritizing profitability and leveraging debt at attractive rates, positions it favorably within this complex ecosystem. This latest news from Grown Rogue arrives as the cannabis sector anticipates potential legislative shifts, such as the DEA’s rescheduling of cannabis and federal banking reforms, signalling a maturing industry. While the core business announcement focuses on financial strategy, the related cultural relevance of cannabis continues to expand, touching upon broader lifestyle trends that often include popular entertainment and music, reflecting its integration into mainstream culture.
Outlook for Sustained Growth
The successful expansion of its senior secured credit facility marks a pivotal step for Grown Rogue International Inc. By reinforcing its financial flexibility and directing capital towards high-potential growth markets like New Jersey and Illinois, the company is well-positioned to execute its expansion strategy. This move reinforces Grown Rogue’s commitment to its craft cannabis model, while demonstrating a disciplined approach to capital deployment aimed at achieving long-term value creation for its stakeholders.
