Mile High Labs Raises $65MM to Purchase Mountains of Hemp
Non-dilutive financing from MGG Capital among the largest private debt deals in cannabis market history
Apr 12, 2019, 10:00 ET
BOULDER, Colo., April 12, 2019 /PRNewswire/ -- Mile High Labs, the largest extractor of CBD in the world, achieved another historic financing event with the close of a $65MM term loan facility, one of the largest non-dilutive capital raises in the sector to date. The financing comes on the heels of the largest Series A equity raise in cannabis market history, completed during the fourth quarter of 2018.
"Following the signing of the Farm Bill in late 2018, we started seeing speculators take out significant portions of the available hemp supply. So we acted decisively to secure the single largest source of high-quality biomass available," said Jon Hilley, CFO of Mile High Labs. "It is quite literally a mountain of hemp – millions of pounds – and this funding guarantees we can continue to meet the increasing demand for CBD from our customers."
Jason Roth, CEO of Mile High Labs, added, "I want to take a moment to thank two groups who made this possible. The first is our farm partners who trust and believe in us – we greatly appreciate your support and hard work. The second is MGG Investment Group, an incredibly sharp group of investment professionals who worked with us at breakneck speed to get this deal done. MGG is one of the most thorough, thoughtful and commercially minded debt funds I've come across – they are great partners who understand our vision and want to support it."
This non-dilutive deal bests most of the deals being done on the market today due to its low cost and speed of execution. Investor Danny Moses, best known for his portrayal in The Big Short, is an investor in Mile High Labs and also consulted with MGG on this financing.
"I was lucky enough to have met the Mile High Labs team last year and saw first-hand their drive to be the standard setter in the hemp extraction business," said Moses. "This financing represents one of the lowest cost debt deals I've seen in this market and is representative of what can happen when you have a strong management team, a solid business plan and the vision to be the global leader in a sector with so much opportunity."
"With this funding in place and our biomass supply secured, it's time to put our heads down and continue to lead the way in CBD quality, safety and compliance," continued Roth. "Most analysts believe CBD will be one of the largest consumer markets in the world. There will be many winners in the CBD market, and we expect to be one of the largest."
For more information on Mile High Labs, please visit www.milehighlabs.com. For sales inquiries, please call 833.CBD.1011.
About Mile High Labs
Mile High Labs is an industrial-scale CBD ingredient manufacturer offering reliable delivery of bulk CBD and co-packing services to the world's leading consumer brands. With an end-to-end GMP certified extraction facility and extensive network of contracted cultivators, Mile High Labs supplies high-quality, high-volume CBD orders year round. Mile High Labs extracts exclusively from industrial hemp flower material. To learn more about Mile High Labs, visit www.milehighlabs.com.
SOURCE Mile High Labs