Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) closed a $50 million revolving credit facility with Needham Bank, a Massachusetts-based commercial bank, according to a company statement.

The facility carries a fixed annual interest rate of 7.99% and matures in August 2030. Cresco Labs plans to use the funds for growth initiatives, acquisitions and general corporate purposes.

The cannabis company described the arrangement as providing access to conventional commercial bank financing, which has historically been limited for the sector. Companies in the cannabis industry have traditionally relied on private credit at higher rates.

"This facility reflects both the continued maturation of the industry and Cresco's position within it," said Charlie Bachtell, Chief Executive Officer of Cresco Labs. "Access to conventional bank capital gives us a powerful, non-dilutive tool to accelerate our strategy."

Michelle Haughton, First Vice President of Structured Finance at Needham Bank, stated that the bank will provide comprehensive financial services including credit, cash management and consumer payments to Cresco Labs.

Cresco Labs operates in the medical and recreational cannabis sector with cultivation, production and retail operations across multiple states. The company owns brands including Cresco, High Supply, FloraCal and operates dispensaries under the Sunnyside brand.

Needham Bank, headquartered in Needham, Massachusetts, has operated since 1892 and focuses on serving individuals, businesses and non-profits.