KushCo Holdings (OTC:KSHB) is the latest marijuana stock to announce a round of fresh borrowings. The company, which focuses on the supplies and packaging used to consume cannabis, said it secured a $50 million credit facility, to be provided by Monroe Capital, a credit asset management company.

The facility consists of a $35 million revolving credit line, plus a $15 million accordion (i.e., the right for the borrower to expand the facility if need be). Its availability is contingent on "covenant compliance and borrowing base ability," KushCo said.

The company will use the new credit for working capital, and to fuel organic growth. KushCo is also aiming to acquire complimentary assets.

In the press release announcing the facility, the company quoted its CEO, Nick Kovacevich, as saying that "KushCo continues to execute on its less dilutive financing strategy that will provide the capital necessary to support our continued operations and acquisitive growth."

"As the size of our customers' business grows, it's imperative to have an adequately sized credit facility that will increase as our business grows," he added.

As of the end of May, KushCo had over $18.5 million in outstanding notes (bonds) payable, and slightly more than $12.2 million in cash. In its recently reported Q3 of fiscal 2019, it paid around $474,000 in interest expense.

Although the company is loss-making, it has posted significant revenue growth lately. Those Q3 results show that its net revenue more than tripled on a year-over-year basis, to $41.5 million. Like other marijuana stocks, KushCo is riding the wave of recent legalization of recreational cannabis in Canada and a thaw in marijuana laws in this country. It's also an active acquirer of related marijuana assets.

The company's latest reported bottom-line quarterly loss was $10.6 million. It's typical for marijuana companies to be in a deficit in these early days of the sector, as many are attempting to build and acquire scale. This often requires fresh rounds of funding -- and one advantage of credit is that it does not have the dilutive effect of new rounds of equity financing.

KushCo has gone the stock issuance route recently; since June 2018, it has managed to raise $70 million from such financing.