Trulieve Closes $60M Debt Offering at 10.5% Interest Rate

Trulieve Cannabis Corp. finalized a $60 million private placement of senior secured notes on January 29, marking the company's latest move to shore up capital as it navigates an evolving cannabis market landscape.

The notes carry a 10.5% interest rate, reflecting the premium borrowing costs that continue to plague cannabis operators locked out of traditional banking channels. The placement, first announced in mid-December 2025, adds to Trulieve's debt load as the company funds operations across multiple state markets.

The numbers tell the story: At 10.5%, Trulieve is paying significantly more than conventional businesses would for similar financing. But for cannabis companies operating under federal prohibition, access to capital—even expensive capital—remains critical for maintaining competitive positioning.

The Financing Details

The senior secured structure gives note holders priority claims on company assets if Trulieve encounters financial difficulties. This security helps explain why investors accepted the deal despite the cannabis sector's regulatory uncertainties.

Trulieve, which trades on the Canadian Securities Exchange under ticker TRUL and over-the-counter as TCNNF, positions itself as one of the nation's leading cannabis operators. The company maintains a dominant presence in Florida, where it operates dozens of dispensaries and commands substantial market share.

Yet that dominance comes at a cost. Expansion requires constant capital infusion, and without access to traditional debt markets, cannabis companies like Trulieve turn to private placements with higher interest rates.

Market Context

The cannabis industry has faced tightening capital markets over the past two years. Public cannabis companies saw their stock prices crater in 2022 and 2023, making equity raises dilutive and unattractive. Debt financing, despite its expense, often proves the more palatable option.

Market watchers note that Trulieve's ability to secure $60 million—even at elevated rates—signals continued investor confidence in the company's cash flow generation. The Florida market remains one of the nation's largest medical cannabis programs, with hundreds of millions in annual sales.

But the financing also highlights the ongoing challenges. Cannabis companies pay premium rates because lenders face uncertain legal frameworks and limited recourse options. Banking restrictions mean these transactions require specialized legal structures and willing private investors rather than conventional bond markets.

What's Next

Trulieve hasn't disclosed specific plans for the capital, though the timing coincides with potential expansion opportunities. Several states recently launched adult-use programs or expanded medical access, creating openings for established operators with capital to deploy.

The company's December announcement of the offering came as cannabis stocks rallied on speculation about federal rescheduling progress. Whether that momentum continues depends largely on regulatory developments in 2026.

For now, Trulieve joins other major operators in managing significant debt loads while waiting for federal reforms that could open cheaper financing channels. The company's ability to service this debt depends on maintaining strong cash flow from its core Florida operations and successful expansion in newer markets.

Industry analysts will watch Trulieve's quarterly reports for signs of how the additional capital affects operations and whether the company can grow fast enough to justify the borrowing costs.

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This article is based on original reporting by www.newcannabisventures.com.