Acreage Holdings (ACRGF) announced Tuesday that it is tapping into a recently created credit facility, drawing it down in the amount of $21 million. Of that amount, Acreage's net proceeds will be roughly $20.2 million, which it says it will use for working capital and "general corporate purposes."

Acreage originally announced it secured the $100 million credit facility in early February from what it described as a "well-capitalized institutional lender" that has still not been identified.At that time, the cannabis company expected that its first drawdown would be $49 million.

Marijuana leaf atop a 100 dollar bill.

Image source: Getty Images

The interest rates of the facility are rather low, compared to other debt financings recently secured by peer marijuana businesses. This first drawdown will bear an annual interest rate of 3.55%, with the second and third ones running at 1.85% and 1.55%, respectively. The rate for the fourth will be negotiated at a later date between the parties. The credit facility has a two-year term that begins with this first drawdown.

Acreage said it also closed on an accompanying private loan that was originally announced at the same time as the credit facility. This will give the company access to $22 million, from a business called IP Investment Company. Acreage CEO Kevin Murphy loaned $21 million to IP Investment Company. The purpose of the private loan was to provide the required collateral for the drawdown from the credit facility.

On Tuesday, a good day for stocks generally, Acreage's shares fell by just over 4%.