Loveland, Colorado-based Mile High Labs – a manufacturer of CBD crude oil, distillate and isolate – is borrowing $65 million to buy “millions of pounds” of pelletized hemp for CBD extraction.
The company closed on the debt facility with investment firm MGG Capital.
The term loan comes less than six months after Mile High Labs closed a $35 million Series A funding round from unidentified institutional investors.
Mile High Labs announced last week it will use the loan to buy “mountains of hemp” but did not elaborate on a specific amount or provide a time frame for the acquisition.
The company uses mobile extraction equipment to produce CBD on hemp farms.
Mile High Labs did not say where the extraction equipment will be sent, though the company said it has installed one extraction unit in eastern Colorado and plans to install another in southern Colorado this month.
Subscribe to our Newsletter