TILT Holdings, a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced that its subsidiary, Jupiter Research, has entered into a new two-year, $10 million asset-based revolving credit facility with Entrepreneur Growth Capital, LLC.

Borrowings under the new credit facility will bear interest at Prime plus 3.5% and will be secured by Jupiter’s inventory, accounts receivable and related property.

“Signing this new credit facility marks a first step in establishing a more normalized capital structure, and also reflects our ability to attain non-dilutive capital as a result of our improved profitability and cash flow generation,” said TILT CEO Gary Santo. “The facility comes with favorable terms for the cannabis industry and provides us with additional working capital to execute our growth initiatives. The timing is also key as our new cultivation capacity comes online and we take additional brand partners to market across Massachusetts, Pennsylvania and Ohio.”

Jupiter’s existing senior and junior note creditors will subordinate their security interests in Jupiter’s inventory, accounts receivable and related property when the new facility closes; the existing note creditors will maintain the priority of their security interests in other Jupiter collateral. The new credit facility has a two-year initial term and will continue for successive one-year terms unless terminated by either party effective at the end of the then-current term. The loan terms provide for minimum monthly interest charges, and for borrowing base eligibility requirements, advance rates, fees, events of default and default interest rates that are common features in such facilities.